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The gambling industry can be extremely dynamic — and in many places, turbulent. But the Baltic nation of Estonia is a picture of stability and prosperity. The country has a regulated gambling market with solid legislation, transparent licensing, and clear taxation. Since 2020, the iGaming sector has seen significant growth, with an increasing number of new online casinos and sports betting sites emerging annually. Continue reading if you want to know more about this hidden gem and learn why it’s one of the most promising European markets in 2024.

Estonia’s gambling market is flourishing.

Regulated since 1995, the legal market originally focused on land-based casinos and lotteries, but in recent years has shifted to iGaming. According to Estonian data company Kantar Emor, the number of regular online gamblers doubled between 2014 and 2019, while the number of traditional players stayed the same. After the pandemic hit, this growth compensated for the decrease in the land-based market both in terms of overall market size and tax revenues for the state.

Online casinos and betting sites in Estonia are primarily popular among younger people from urbanized areas, and the country has consistently low rates of problem gambling. Unlike most other countries, the legal age for gambling is different for lotteries (16), betting (18), and everything else (21).

Estonia found a way to make the gambling industry benefit society as a whole: tax revenues fund sports, education, and cultural projects, as well as social support and healthcare programs aimed at helping people with disabilities.

At the moment, the market is dominated by lotteries, though demand is growing for other forms of gambling, meaning there is still room for new providers of slots, poker, table games, and sports betting.

Starting a gambling enterprise in Estonia

To open an online casino or a sportsbook, the first step is rigorous market research. If Estonia’s favorable regulations and high demand have already caught your attention, let’s look at the step-by-step process of opening an iGaming business there.

Establishing a company

Estonian law doesn’t explicitly oblige operators to register a company in Estonia, but it’s necessary to have a physical office in the country.

Registering a company in Estonia online is a streamlined process thanks to Estonia's advanced e-Residency program and digital infrastructure. To register a company in Estonia online, first, obtain an e-Residency, which allows you to use Estonia's digital services. Apply for e-Residency, pay the fee, and provide identification documents. Once approved, you'll receive a digital ID card.

Next, check the availability of your desired company name using the Estonian Business Register. Prepare the necessary information about the company’s founders, board members, and business activities, ensuring you have a legal address in Estonia. Use the Company Registration Portal to submit your application electronically, pay the state fee (around €190 for private limited companies), and complete the registration, which typically takes one to five business days. After registration, open a business bank account in Estonia and, if applicable, register for VAT if your annual turnover exceeds €40,000.

Getting a license

Obtaining a gambling license in Estonia is a detailed process managed by the Estonian Tax and Customs Board (EMTA). The process begins with securing an activity license, which verifies the financial stability and reliability of the company and its key individuals. This license is issued for an indefinite term.

Once the activity license is obtained, the company must apply for an operating permit for each type of gambling activity and location. The operating permit, which costs €3,200, is valid for up to 20 years for land-based gambling and up to 5 years for remote gambling. The application requires comprehensive documentation, including details of the company’s management, shareholders, financial statements, and compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Fees for obtaining a gambling license in Estonia

License type Application fee State fee Authorized Capital Taxation Processing time
Games of chance €3,200 €47,940 €1,000,000 €300 per gambling machine and 10% of the amount received out of the bets made on gambling machines 4-6 months
Sports betting (Toto) €3,200 €31,960 €130,000 6% of the sum received from the bets made by players 4-6 months
Lottery €3,200 €47,940 €1,000,000 22% of the amount received from the sale of lottery tickets 4-6 months
Games of skill €3,200 €3,200 €25,000 N/A 4-6 months
Remote gambling (online) €3,200 €47,940 €1,000,000 6% of the amount received from bets 4-6 months

The total processing time for both licenses ranges from four to six months. This thorough licensing framework ensures operators maintain high standards of integrity, financial stability, and compliance with legal requirements, safeguarding consumer interests and the industry’s reputation.

Platform

After the bureaucracy is dealt with, it’s time to focus on the technical side of your business. To offer your players an amazing experience, you need a platform solution, which includes the functional core of your online casino or sportsbook. This includes a backend that unifies the games, payment systems, and web functionality of your site, as well as the frontend that your players interact with. Platform solutions come in different varieties depending on the available functionality. Turnkey solutions give operators a complete set of technical features while leaving them in control of design and user interface, and White Label solutions allow for a quick start with established business structures and a license.

With Slotegrator’s powerful Turnkey solution, you can build your own online casino project from the ground up in just a few clicks.

Launch a casino now

A platform’s stability and usability are of utmost importance. It has to work smoothly with gaming content and payment systems, as well as be up to contemporary standards. If you are planning to acquire the platform and content from different vendors, double-check that all of the pieces will fit and the different modules can all work together.

Gaming content

Games are the bread and butter of any gambling business. You have to make sure that your content offering is competitive because players won’t stick around if the game choice is limited and the themes are stale.

There is a stable demand for online versions of the traditional casino experience. Classic card games like poker, baccarat, and blackjack are an absolute must. The same goes for roulette — it’s a solid alternative for players used to land-based casinos. Online roulette sites enjoy significant popularity in Estonia as they align well with local gaming preferences. As many players in Estonia are first exposed to lotteries and instant wins, online roulette games also serve as a way to get a somewhat familiar experience that doesn’t require much prior knowledge and skill to enjoy.

Naturally, slots will be a big part of your online casino’s offering. Gambling halls and physical slot machines were a staple of the Estonian gambling industry in the years following legalization, creating a large base of slot game players in the country. There are two main things to consider when deciding on your slot strategy: themes and game mechanics.

Themes should be as varied as possible because people have different tastes: some strictly enjoy classic fruit slots, while others are fans of oriental and Egyptian themes, Western aesthetics, or futuristic slots. In any case, players enjoy having options, so when they get tired of one game, there should be something completely different to provide a change of pace.

Besides the graphics and music, slots have different game mechanics and volatility. There are games with lower average bets and lower payoffs, as well as riskier games that ask for bigger wagers. The number of paylines, the presence of wild symbols, and scatters make slots such a diverse form of entertainment. Make sure your platform offers a wide selection of options to cater to everyone.

Another great fit for the Estonian market is live dealer games. Players used to land-based casinos, lotteries, and bingo are naturally drawn to a familiar experience, and live dealer games offer exactly that. Providers make it possible by using cutting-edge technology that promises smooth streaming; by employing trained professionals, these games deliver a real casino experience and have meaningful human interaction.

Different developers focus on different types of products, and each content provider on the market has its own specialty and a range of signature products. Ask your aggregator what developers are available in your region of operations, and what each of them brings to the table.

Sports selection

If you are starting a sportsbook, offering a wide selection of sports and bets is extremely important. First of all, make sure that the types of bets and wagers that you are offering are in line with the expectations of local punters.

Every region has its quirks when it comes to how things are called and what types of bets are popular. The best way to gauge what to offer is to look at what your competitors are advertising and how the available selection compares to other markets.

When selecting sports, it’s best to follow the same logic. It’s well known that both local and international football is very popular in Estonia, but the most widely loved sport in the country is actually basketball. Estonia has a strong spectator culture, and there are many strong teams that compete both locally and internationally. As in neighboring Baltic countries, hockey is widely played, watched, and discussed, but the country also has a unique local winter sport — ice cricket. It’s played on the surface of a frozen lake, and it’s popular enough that the country has actually had a Cricket Association since 2007.

Estonians also appreciate cycling. Events like the Tour De France draw a sizable number of punters, in part thanks to historical victories of famous cyclists like Jaan Kirsipuu.

Online sportsbook solution Sportegrator is a complete bundle for a sports betting project, with customizable software and a wide choice of data feeds, available for seamless integration via our unified API.

Payment systems

As Estonia is a part of the eurozone, players have a certain level of expectation when it comes to payment systems. It’s always important to make sure that all financial transactions are processed safely and securely. Besides the Euro, many players like to gamble with cryptocurrencies, which is why including this option is extremely beneficial for the potential success of your iGaming business.

Assemble a team

While you don’t need waiters, dealers, and pit bosses as an iGaming business, you still need a lot of professionals to keep the gears turning. To stay compliant and run your business effectively, you will need financial, legal, and administrative professionals (either in-house or outsourced). To keep the platform running smoothly you will need a technical and QA team, and finally, player support and marketing to take care of and grow your player base.

Estonian authorities facilitate the transparency and legality of the gambling market, so it makes sense to invest in an anti-fraud department to make sure that players are enjoying the entertainment honestly and using legally obtained funds.

Player acquisition and retention

Starting a casino or sportsbook is just the beginning. Once you open your virtual doors, it becomes your daily task to keep your existing audience entertained, as well as constantly maintaining the flow of new players, so the business can grow and prosper.

Estonian players expect the design and quality of service to be comparable with that of other European markets, and it won’t be long before this promising market is full of operators ready to provide what they’re looking for.

Player acquisition requires an effective marketing strategy that remains in compliance with Estonian advertising laws. Unlike many other regulated markets, gambling advertising is not banned in the country, but there are certain rules and limitations to consider.

Fines for failing to adhere to advertising requirements in Estonia are around €10,000, and advertising something that’s expressly prohibited is five times that amount.

Player retention includes re-marketing, loyalty programs, player support, and bonus strategies that make players feel rewarded for interacting with the platform more meaningfully. You should also inform players about new releases and bonus options so they don’t forget about you after taking a break.

Ready to start?

Taking the first step is always a little intimidating. There is so much to consider, and at first glance, the number of questions seems overwhelming. However, some opportunities are too good to pass up, and if you are as excited as we are about the potential of the Estonian market and want to know more about how to get a license, launch your own casino or sportsbook platform, or make sure your existing business model translates well into the Estonian market, get a free consultation with our experts.

Frequently asked questions
Are online casinos legal in Estonia?

Yes, online casinos are legal in Estonia. The regulation and supervision of online gambling activities, including online casinos, are overseen by the Estonian Tax and Customs Board. To legally operate, online casinos must obtain a gambling license from this regulatory body. The licensing process ensures that online gambling sites comply with Estonian laws and maintain fair and secure gaming environments for players, including popular gaming options like slots, poker, and lotto.

How to obtain a gambling license in Estonia

To obtain a gambling license in Estonia, operators must follow a specific procedure governed by the Estonian Tax and Customs Board. Here are the general steps involved:

  1. Eligibility check: Ensure the company meets the eligibility criteria, which typically includes being a registered business in Estonia or another EU country.

  2. Application submission: Prepare and submit a detailed application form. This form requires extensive information about the company, its shareholders, financial statements, and business plan.

  3. Background checks: Undergo thorough background checks. This includes verifying the credibility and integrity of the company’s key personnel.

  4. Compliance with technical standards: Ensure that the online gaming platform meets the technical standards set by the Estonian authorities. This includes software fairness, security measures, and data protection protocols.

  5. Financial Guarantees: Provide financial guarantees. Operators need to demonstrate their financial stability and the ability to cover potential payouts to players.

  6. Payment of fees: Pay the required application and licensing fees. The fee structure can vary depending on the type of gambling activities the license covers, including slots, poker, sportsbook, and other iGaming services.

  7. Review process: The Estonian Tax and Customs Board will review the application, conduct inspections, and possibly request additional information.

  8. License issuance: If all requirements are met and the application is approved, the license will be issued. The operator can then legally operate an online casino site in Estonia, offering a range of gambling options to Estonian players.

The entire process ensures that only reputable and secure operators are allowed to offer online gambling services in Estonia, thereby protecting players and maintaining the integrity of the gaming industry. Starting an online casino or other iGaming business in Estonia involves careful planning and adherence to regulatory standards, ensuring a fair and enjoyable experience for all participants.

Nikolaj Plugatar
Nikolaj Plugatar
Business Development Manager
Nikolaj started at Slotegrator in 2018 as a Sales Manager and became a Business Development Manager in 2022. Nikolaj is passionate about the iGaming industry — he is an expert in gambling markets and modern technologies and trends in development. He shares his knowledge about the most in-demand products and solutions on the market today and steers the gambling community in the direction of growth.

Comments

  • B
    BETISN Sportsbook
    January 6, 2022
    Very impressive write-up. Thanks for writing.
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