(AsiaGameHub) –   The dismissal of the adviser responsible for an administrative mistake that will cost Estonia €4 million was described as ‘unavoidable and necessary’ by Chancellery Director Antero Habicht.

An error in Estonia’s Gambling Tax Act mistakenly exempted online casinos from taxation in 2026 before it was found in January. Despite this, the country is still poised to forfeit significant tax income due to the oversight.

This week, the Estonian broadcaster Eesti Rahvusringhääling (ERR) stated the adviser behind the error was fired after disciplinary action. New reports now indicate that Piia Schults, previously unnamed, intends to appeal the decision legally.

Responding in writing to the intended appeal, Habicht commented: “Considering all factors, this action was unavoidable and necessary; maintaining a trust-based working relationship was no longer feasible.

“Current information suggests the official will seek judicial protection of her rights, and as a result, we deem further public commentary inappropriate.”

Habicht earlier informed ERR that Schults’ dismissal was a consequence of a ‘serious breach of official duties’, noting the termination ‘was not prompted by the error alone, but also by other case-related circumstances uncovered during the disciplinary process’.

Estonia is currently phasing in a reduction of its gambling tax rate from 6% down to 4% by 2029, aiming to stimulate investment in its gambling industry and establish itself as a European iGaming center to rival jurisdictions such as Malta and the Isle of Man.

ERR reports that a five-page directive from the Riigikogu Chancellery showed the official knew of the mistake on 5 January, yet superiors were not notified until 12 January, when ERR made the news public.

In an interview with the outlet, Schults conceded the error was ‘truly dreadful’ and that it left her ‘deeply shaken’. However, she highlighted her 32-year service as an adviser to the Economic Affairs Committee and that this was her first major mistake.

Schults also denied Habicht’s assertions, framing the situation as a ‘question of principles’.

She stated: “I must contest this. Maybe it will motivate other colleagues as well. You simply cannot treat someone like this. I will fight this for all of them, considering my colleagues and Estonian society. I believe the public has a right to know what occurs in the government sector. We are not isolated—we all coexist here in small Estonia, where everyone can see each other.”

Schults further mentioned she has consulted a lawyer and is inclined to pursue the dismissal case in court instead of through a labour dispute committee.