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 Estonian publication Eesti Rahvusringhääling (ERR) to be Piia Schults, said she is “shaken” by her “terrible” mistake but feels as though 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, subsequently declining in 0.5% increments per 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 (£3.45m) 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, thinking of my colleagues and Estonian society. 

“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.”

Estonia’s iGaming stumbling blocks

The twist is just the latest in a series of events relating to the Estonian gambling industry over the last few months. 

The country is looking to become, as abovementioned, an established iGaming hub, following similar models undertaken by the likes of Malta, Gibraltar and the Isle of Man. 

By 2029, its remote gambling tax rate will drop lower than Malta’s 5%, potentially enticing more operators to set up base there. However, this event has shown that there is still a serious lack of straightforwardness in the proceedings. 

When questioned on Schults’ dismissal, Minister of Finance and member of the Estonian Reform Party, Jürgen Ligi, said: “It certainly doesn’t seem fair. But what does the Reform Party have to do with this, and why is Isamaa involved? 

“The draft act in question – the Gambling Tax Act – is something I did not approve, but where a technical error occurred in a very tense atmosphere. The meetings with officials took place mostly in the Riigikogu and online. 

“A small deletion error occurred, leaving an extra word in. But I don’t think a person should be executed for that.”