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Estonian Official to Sue After Dismissal Over Gambling Law Error

A long-serving adviser of Estonia’s Riigikogu Chancellery who was dismissed over a clerical error in the Gambling Tax Act is set to appeal the decision.

The official, revealed by the Estonian publication Eesti Rahvusringhääling (ERR) to be Piia Schults, said she is “shaken” by her “terrible” mistake but feels it is her “duty to take the matter to court”. 

The act was passed in December last year, resulting in online casinos being exempted from tax in 2026 as Estonia looks to establish itself as an iGaming hub.

The error, now revealed to be Schults’, was noticed in January and has since been corrected. 

Estonia’s remote gambling tax will drop from 6% to 4% by 2029, then decline in 0.5% increments each year, with all funds generated going towards culture and sports.

However, the error has already caused huge repercussions, as the state is set to lose approximately €4m in projected gambling tax revenue for the year.

But Schults, who carried a stellar reputation as an adviser for over three decades, during which no other criticism has been made about her, is in contact with a lawyer to contest the decision.

She told ERR that she believes the case is “ultimately a matter of values”. 

“I have to challenge this. Perhaps it will also encourage colleagues,” she said. 

“You simply cannot treat a person this way. I will challenge this on behalf of all of them, with my colleagues and Estonian society in mind. 

“I believe people have the right to know what is happening in the public sector. These are not separate containers – we all live here in small Estonia, in plain view of one another.”

Chancellery Director Antero Habicht provided a written response to the nationwide publication on the issue.

“Taking all the circumstances into account, this was unavoidable and necessary; it was no longer possible to continue with a relationship based on trust,” he wrote.

“Based on current information, the official will turn to the courts to defend her rights and therefore, we do not consider it possible to comment further publicly.

“Initiating formal proceedings is always a last resort. As a rule, problems are discussed confidentially and handled verbally. We do not comment on any prior mistakes in this case.”

The country is looking to become, as mentioned above, an established iGaming hub, following models similar to those of Malta, Gibraltar, and the Isle of Man. 

By 2029, its remote gambling tax rate will be lower than Malta’s 5%, potentially enticing more operators to set up their bases there. 

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