Gambling license in Estonia

Estonia is one of the most interesting and promising European jurisdictions for launching a gambling project. The gambling license of this Baltic country attracts the attention of foreign investors because the state has created transparent conditions for foreigners. Experts from SBSB Fintech Lawyers recommend an Estonian gambling license for projects that plan to scale up and enter the European market after a successful platform launch. In this article, we will explore all the peculiarities of the Estonian casino license.

Regulation of the Gambling Industry in Estonia

This European jurisdiction is known for the state’s favorable attitude towards the gambling business. After gaining independence, the country legalized the gambling industry. The Tax and Customs Department is responsible for regulating the gambling sector. Since 2008, the regulator has stopped working exclusively with land-based establishments and began issuing licenses for online gambling. Initially, only local operators were allowed to apply for licensing, but since 2011, the jurisdiction has started licensing foreign projects.

A legal framework has been developed for the legal functioning of gambling companies, regulating all nuances of the industry. Estonian gambling regulations, player protection conditions, requirements for technical conditions for offline and online games, licensing procedures, operator obligations, and their liability for violations are set out in the Gambling Act. This is the main regulatory act, but licensees are also required to comply with the laws on taxation, advertising, and the prevention of money laundering.

Types of Licenses

In Estonia, gambling is divided into several categories. The peculiarity of the jurisdiction is that two different documents are required to legally operate a business and provide services:

• a license for activities allows the operator to provide services in the gambling sector — lotteries, totalizators, skill games, and direct gambling. Separate licenses are required for all these games. Moreover, one legal entity is allowed to submit applications for several permits if the business model of the company requires it;
• a permit for activities gives the right to open a specific offline venue for gambling or to organize them remotely. Obtaining this document is the second stage, which must be completed after obtaining the license.

Advantages of the Estonia online gambling license

The Estonian gaming license is appreciated for the following advantages:

• some of the lowest tax rates in Europe. The rates vary depending on the type of gambling and range from 5% to 18%. The corporate income tax rate is 22%;
• a prestigious and respected jurisdiction. The Estonian regulator has developed standards for the transparent operation of operators, as well as rules to ensure fair play and protect the interests of players;
• a long license term. The activity license is valid indefinitely, covering games of chance (e.g. casino), toto (sports betting) and games of skill; while operating permits for remote games of chance, remote games of skill (online casino), and instant lotteries with a prize fund over €1,000 are issued for 5 years; toto operating permit for remote gambling is issued for 20 years;
• developed technological infrastructure. The state invests in the development of digital infrastructure, ensuring stable operation.

How to Obtain a Gambling License in Estonia

The licensing procedure can take several months. Potential providers of gambling services must go through several stages, the first of which is registering a legal entity in Estonia or in the European Union. Please note that companies are allowed to have only one type of activity — gambling.

If you need assistance in obtaining an Estonian gaming license, contact SBSB experts! Our team helps to understand the aspects of regulatory acts and provides comprehensive legal support for gambling projects before and after their launch.