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Estonia is a Nordic country, which is a member of the Baltic States. Estonia has been a member of the EU since the year 2004. This small nation is widely considered to possess one of the most advanced IT industries worldwide. The whole of Estonia’s population is a mere 1.3 million, or just over. Estonians have to pay amongst the highest taxes in the world. Consequently, those who apply for a gambling license in Estonia only ever plan to be able to offer their services to residents of Estonia.
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Gambling Tax Act
Prior to Estonia’s Gambling Tax Act, which was enforced in 2009, gambling over the internet was illegal in the country. Given the economic downfall, which negatively affected the economy in Estonia, the government decided to make gambling online legal. Consequently, it established an official Act designed to regulate the online gambling industry in Estonia.
Online gambling operators in Estonia are able to offer their gaming and betting services providing they have the licenses required from Estonia’s Tax and Customs Board.
In terms of high street casinos and other gambling establishments, they are regulated in Estonia by the 2008 Gambling Act.
The operating Licenses required in Estonia
Any online casino operator which wants to provide its services to residents of Estonia is required to make an application for two separate licenses. These applications must be submitted to Estonia’s Tax and Customs Board.
One of the required licenses is referred to as an ‘activity license’. This license is only given for a limited period and is not permitted to be transferred.
Any online gambling operator applying for this license must pay a fee 47,933.73 Euros, as well as providing the required paperwork and having passed financial and tax checks.
Those operators in possession on an ‘activity license’ for their specific gaming sector will also have to make an application for what is known as an ‘operating license’. The operating license is permitted to the gambling sub divisions of ‘games of chance’, which is typically bingo and casino games, and games that require skill or toto, which is a totalisator as well as betting game. These types of ‘operator licenses’ remain valid for twenty years.
It is important to note that lottery type games, including scratch cards and bingo, are only permitted to be organised by a limited company for associations and are not for profit and foundations that are owned by the state.
Regulations related to gambling in Estonia
It is not allowed for anybody under the age of 21 years to be involved in online gambling in Estonia.
It is required that operators ensure the average value of funds that is distributed amongst players exceed 80% of the whole value of the total bets made.
The game’s organiser is able to use the information which has been entered for verification of the restrictions in existence, on playing chance only games.