The gambling business in Estonia is at its peak. The local approach to regulating this sphere is an example for many countries and it makes the region very attractive for operators. The Estonia gambling authority has provided all the necessary conditions for the development of the industry on the territory of the country. Moreover, transparent licensing procedure and tax policy is also a big advantage for choosing this jurisdiction.
Interesting to know that land-based and online gambling not only replenish the country’s budget but also finance sports, educational and cultural projects. Also, part of the proceeds from taxes goes to healthcare and, in particular, to help people with disabilities.
In order to offer gaming platforms in the territory of this jurisdiction legally, operators need to go through the process of licensing the gambling business in Estonia. You can apply for a license for online casinos in Estonia or obtain a permit for land-based gambling enterprises. Local iGaming licenses cover different types of remote gambling, including lotteries, slots, and bookmaking among others.
Requirements for obtaining a gambling license in Estonia
In order to maintain a reputation and avoid licensing fraudulent businesses, Estonia puts forward quite serious requirements for gambling operators. The competent authority (Estonian Tax and Customs Board) closely monitors compliance with the conditions presented below:
- Registration of a company in Estonia (It is not necessary, but advisable to do it because the operator needs to open an office in this country in any case);
- The company must operate according to Estonian gambling law;
- Confirmation of the organization of effective technical support of the gambling site is required;
- It is necessary to place the company’s servers within the European Union, as well as to provide the information stored on them to the Estonian gambling body;
- To obtain a gambling activity license, operators should conduct an independent examination of the software and provide its results to the licensing commission. One of the key requirements for software is its ability to identify the user and detect suspicious transactions that may be the result of money laundering;
- An applicant should provide proof of no criminal record of all founders and key employees of the company;
- The operator should only engage in gambling activities;
- The availability of the authorized capital;
- Only the legal entity to whom the permit was issued can work under this Estonian gambling license;
- The Estonian gambling license is intended for companies operating slot machines, totalizators, lotteries, and other equipment;
- Before submitting the application operator should collect the necessary package of documents for getting a gambling license.
All the rules that gambling businesses must follow are detailed in the Estonian Gambling Law, which is the main legal document in the industry.
Required package of documents for obtaining a gambling license in Estonia
- Information about the founders of the company;
- Copies of the Statute and foundation meeting defining the management of the company and its name;
- Confirmations of payments for rent and utility bills;
- Confirmation of the financial position of the company;
- Notarized documents confirming the availability of a bank account and funds on it;
- List of games operated by the casino and their full characteristics (names, rules of the game, etc.);
- Description of technical characteristics of payment transactions in the casino (needed to confirm the fair payment reward);
- Confirmation of security in the gambling establishment;
- Detailed business plan for 3 years;
- An application, which should be submitted to the Tax and customs board of Estonia.
The applicant will receive the initial report from the regulator a few days after the submission of the application. However, the waiting period for the issuance of operating permits for gambling can last several months. Estonian law sets a maximum period for consideration of an application of six months.
Estonia gambling license cost
If the licensee opens a bookmaker’s agency in Estonia, he must have an authorized capital of €130,000. If the applicant is going to open a casino (any game of chance type of gambling), then, in this case, his authorized capital will be €1,000,000. It should be noted that there is no need for an operator or a bookmaker to keep this capital in a bank account.
The licensee must also pay the state fee once and pay the fee for obtaining a permit for a gambling business once time.
|Kind of gambling license||Fee|
|License for betting||€35 200|
|License for casino||€51 200|
According to the Gambling Tax Act, gambling business owners are taxed at a rate of 5%. This tax is levied every month on the total bets.
Land-based casinos must also pay the following taxes:
- €1278.23 per game table
- €300 per game-of-chance machine
- 10% of the net gaming revenues
- €31.95 per game-of-skill machine
If you need help with acquiring a gambling license in Estonia, you can contact our lawyers, and they will provide you with a full package of services. Our specialist will help you with the whole process of obtaining a gambling license. They will collect and submit the necessary documents to the commission instead of you. As a result, you will get your gambling license and launch your gambling establishment in Estonia.