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Estonia

Gaming license Estonia

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Rosloto offers its customers to order an online casino licensed in Estonia. This profitable investment will bring a decent income in record time.

Online casino licensed in Estonia

Working in Estonia will increase the prestige and competitivity of your brand and make it recognizable among clients, partners, and investors.

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Characteristics of the Legal Field

Estonia is one of the few European countries in which the gambling industry is developing and attracting foreign investors rapidly.

The reorientation of the Estonian economy occurred after the deep crisis of 2008. The government introduced new legislation and issued the first permits for gaming activity.

Statistics show that 170 land-based gambling establishments and more than 300 online platforms operate in the country today.

The state is characterized by a calm political and economic situation, well-developed infrastructure, and clear laws. These conditions suit those businessmen who want to launch an iGaming business and promote it in European markets.

Gambling Licensing in Estonia: The Main Benefits

How to obtain a gambling license in Estonia

Gambling sphere of this Baltic country gives the following privileges to the owners of the gaming business:

  • Preferential tax policy. Unlike many other members of the European Union, Estonia has low tax rates. Moreover, many companies can use tax holidays. For example, the tax on online casinos in Estonia is 5% of the net profit of a business entity. Lottery providers must pay 18% of the turnover to the local budget. Bookmakers must contribute 10% of revenue to the treasury. However, these deductions can be reduced by the amount of winnings in the current reporting period.
  • Long validity term of permission. Gambling licensing in Estonia is provided for 10 years. This is one of the most long-term permits in international practice, which contributes to positive feedback from both investors and business partners.
  • Entering the European market. The gaming business in Estonia will allow businessmen to cooperate with most EU states (no additional agreements are required).
  • Government support. The authorities consider the gambling segment as a priority source for filling the budget and generating GDP. Therefore, they provide transparent legislation and precise conditions for interaction between the gaming market participants. 
  • High-quality related services. Many manufacturers of good software and gaming content work in this country. Besides, you can get professional technical, marketing, and legal support for your business.
  • Reputation increasing on the international level. Estonian jurisdiction is considered one of the most prestigious and respected legal fields in Europe.
  • Simplified financial and audit reporting. Operators do not need to prepare bulky accounting reports since the government has simplified this procedure greatly.
  • Business geography expanding. The Estonia online casino owners are included in the register of European Union companies automatically.

Regulation of iGaming Sphere

Start your gambling business in Estonia

Estonian Tax and Customs Board is responsible for all issues related to the gambling industry regulation.

The authorized body is engaged in the issuance and extension of permits, monitors license holders’ activities, and considers user complaints. The department follows the Gaming Act (2010) in its work.

To launch an online casino in Estonia, a business owner must receive two types of permissions:

  1. A license is issued for 10 years. This document is a confirmation that the entrepreneur meets all the criteria of the gaming legislation.
  2. Permission to operate in the gaming field is necessary for organizing any type of entertainment on the Internet (online casinos in Estonia, poker rooms, bookmakers, and other platforms). The document is valid for 5 years.

How to Get an Estonian Permit

When deciding to open a gaming business in Estonia, an entrepreneur has to obtain an appropriate permit and register his or her company in this jurisdiction. Note that a foreign firm must be registered as a JSC (Joint-Stock Company) or LLC (Limited Liability Company).

Requirements for Applicants

The enterprise must meet the following criteria:

  1. Firms are not allowed to engage in any other business activities except gambling.
  2. The license holder must assure that no one except him or her will work under this permission in written form.
  3. The minimum starting capital of the enterprise is €1 million.
  4. The reserve fund of the company should be calculated as 33% of the authorized capital. Thus, the minimum allowable reserve is €333 thousand. Further, the reserve fund must be replenished from the earned net profit. This nuance must be prescribed in the enterprise documentation.
  5. The applicant is required to open two commercial accounts in a local banking institution (the first one for using funds for the company's operational needs; the second one for accumulating finances guaranteeing the prize payouts).
  6. It is necessary to undergo an independent examination of the software for compliance with European standards.
  7. All names of online slots must be submitted with the indication of the product developer.
  8. It is essential to place an informational panel with administrator contacts and a feedback form on the website.
  9. An operator needs to develop mechanisms for restricting access to underage video slot amateurs and compulsive gamblers to the resource.

Documentation

The package of documents sent to the gaming department should contain data about the registration, legality, and financial support of the business project.

The applicant should submit the results of server hardware and software testing, copies of contracts with suppliers of content (including thorough characteristics of each video slot), certificates of opening bank accounts, and confirmation of the right to use a domain name.

Documentation about the officers, shareholders, and beneficiaries of the firm must be presented in a separate package. Applicants need to send their personal data, recommendations, and certificates of no criminal conviction.

Besides, a business plan for three years with a thorough chart describing the revenue and expenditure parts of the capital, ways of outside funding, and options for capitalizing cash assets must be submitted.

The Cost of Permissions

Gambling licensing in Estonia is marked by affordable prices compared to other European jurisdictions.

Parameter

Cost, €, thousand

Permission on IGaming activities (random outcome games)

47,9

License for skill-based entertainment

31,9

Permission to organize an online totalizator

3,2

One-time fee for consideration of the application

3,2

Payment for analysing an application for lottery ticket sale activities

0,6

As a rule, the consideration of an application takes from four to six months. This term depends on the correctness of the documentation package. Therefore, it is better to entrust this task to professionals.

Where to Purchase a License

The Rosloto team provides a wide range of services related to the launch of gaming projects in prestigious international jurisdictions. We cooperate with Estonian regulatory authorities. That is why we are well acquainted with the peculiarities and nuances of local legislation.

Rosloto offers full-fledged turnkey online casinos in Estonia. Our solutions include an impressive entertainment library, well-thought-out software, and multifunctional payment modules. In addition, we are engaged in the development of unique slots using HTML5 technology.

Our experts provide legal support and counselling for firms at all stages of the consideration of an application for gambling licensing in Estonia.

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Clara Hazel
Author: Clara Hazel
iGaming business expert
Updated 30.06.2023
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