Tax on Player Winnings
In Estonia, individual gambling winnings are generally tax-free for players. Prizes from casinos, sports bets or lotteries do not count as taxable income under Estonian law. One guide notes that Estonian players are allowed to participate at foreign casinos without special tax restrictions.
However, if gambling activity is deemed a professional occupation, the tax office could theoretically reclassify significant winnings as income. In practice, recreational players keep their winnings tax-free.
Taxes for Licensed Operators
Licensed gambling operators must pay a monthly gambling tax on their revenue. The tax is calculated on gross gaming revenue (bets minus payouts) and is currently 6%. For example, a licensed online casino with €1,000,000 in net stakes would pay €60,000 in tax. This rate will rise to 7% in 2026.
Operators file regular returns and pay the tax to the Estonian Tax and Customs Board. Additionally, Estonia’s corporate tax (20%) applies only to distributed profits, meaning retained earnings can be reinvested tax-free. Notably, licensed gambling services are exempt from VAT.
Foreign Licenses and Tax
Casinos operating under foreign licences (Curacao, MGA, Kahnawake, etc.) have no Estonian gambling tax obligations, since they do not hold an Estonian permit. Estonian players who gamble at these offshore casinos still do not owe tax on their winnings. However, foreign-licensed operators cannot legally target Estonia without obtaining an Estonian licence. (See our Is It Legal to Play on Foreign Casinos in Estonia page for guidance.)
Comparing Tax Regimes by License
In summary, tax treatment depends on licence type. An Estonian-licensed casino will remit 6–7% of its GGR to Estonia, while a purely offshore casino pays taxes only in its home jurisdiction. For instance, a Malta-licensed operator pays Maltese gaming taxes under Maltese law, and a Curacao licence involves Curaçao’s fees. Regardless of the licence, casino winnings remain tax-free for players in Estonia.
