Estonian gambling business 

Organization of gambling business in Estonia is a legal activity. The sphere of gambling entertainment is regulated by law and is under the supervision of the Estonian Tax and Customs Board. The state act regulating the work of any organizations related to the supply of gambling entertainment is the Gambling Act.  

The gambling industry is developing equally offline and online. To organize a land point with gambling entertainment, you need to obtain a license. Similarly, a license is required to create online gambling sites. Since the gambling industry is partly nationalized, foreign operators also need to obtain permission to provide services. 

Today, the development of gambling in Estonia is mostly associated with tourism. The largest number of players in land-based gambling establishments are residents of Finland and the CIS countries. Estonian citizens, in turn, oppose the development of gambling addiction among the population of the country. They voluntarily enter their names into a registry that restricts access to online casinos or land-based establishments. 

Estonian gambling legislation 

Gambling in Estonia is considered entertainment that meets the following parameters: 

1. the participant of the game makes bets; 

2. as a result of the game, one or more players may receive a win, the amount of which depends on the bets set; 

3. the outcome of the game depends on the case. 

According to the Gambling Law, these definitions include casino table entertainment, slot machines, lotteries and sports betting. All these types of gambling services are provided only if the operator has received a license. The organization of the gambling business is subject to a large tax. 

Estonian legislation distinguishes the following types of legal gambling: 

1. games of chance (entertainment, the outcome of which is determined randomly or by a random number generator); 

2. lotteries; 

3. sweepstakes (sports betting); 

4. games of skill (entertainment, the result of which depends on the skills of the participants and knowledge of the rules). 

The games of chance include table games and slots. Lotteries include private and public lotteries. A variety of sports bets and bets on various events are also available. Skill games include: roulette, poker and other card games. 

Gambling regulators and laws 

The tax and customs department of the Ministry of Finance (Estonian Tax and Customs Board) is responsible for regulating the gambling market in Estonia. This body is engaged in issuing licenses in accordance with the main document regulating gambling activities - the Law on Gambling. The paragraphs of the law describe in detail what entertainment is considered gambling and what permissions an entrepreneur must obtain to organize a gambling business. The state itself has the exclusive right to organize gambling entertainment. Licenses and permits that are issued to private companies delegate this right to individuals and legal entities.  

The first gambling law was issued in 1994. He touched upon the nuances of organizing lotteries. At the same time, a law was passed on the taxation of companies providing gambling services. A year later, the Gambling Law appeared, which established the legal basis for other gambling games (games of chance, sweepstakes, games of skill). Since 1995, the Gambling Law has become the main document regulating the activities of gambling companies. Since its inception, it has undergone a number of changes and amendments that tighten control over operators. 

Conditions for obtaining a license in a gambling jurisdiction 

A license to organize a gambling business in Estonia is issued to both individuals and legal entities. In order to obtain state permission, an entrepreneur must provide a package of documents confirming his financial reliability. It is also necessary to prove the availability of technical and material means for organizing gambling. The list of documents in the application package includes: 

1. a list of the founders of the company and copies of documents confirming the identity of the organizers; 

2. documents on the availability of technical and material base - payments for rent and utility services of the office, bank account statements; 

3. a detailed business plan with a forecast of costs and profits; 

4. a description of the security measures in the gambling establishment or on the online platform, a description of the protocol for paying out the won funds; 

5. information about gambling that is supplied by the institution - manufacturers, game rules, a complete list of names; 

6. application for a license. 

Only those applicants who meet a number of requirements can obtain a license. A legal or natural person must be registered in Estonia, and the company must operate in accordance with the laws of the country. The operator cannot engage in any business activity other than gambling business. A private company must be financially independent. The starting capital of the enterprise must be at least 2 million EEK (Estonian kroons). 

Consideration of a package of documents and an application for a license occurs only after payment of the state fee. The amount of the fee is determined by the chosen area of ​​the gambling business. An application for licensing gambling services, except for lotteries, will cost 3200 EUR, and for licensing a lottery organization - 640 EUR. Consideration of an application for the organization of charitable lotteries - 130 EUR. If the decision of the Ministry of Finance is positive, the enterprise pays the cost of the license: 

• for the organization of gambling (games of chance) – 47 940 EUR; 

• for the organization of games of skill - 3 200 EUR; 

• for the organization of sweepstakes – 31 960 EUR. 

In addition to the license itself, applicants must obtain additional permission to organize a gambling business. Thus, the term of the license is 10 years, and the right to supply gambling entertainment is five years. The permit is renewed after the expiration date. 

Individuals and legal entities have different opportunities in the issue of legalization of activities. Individuals are only allowed to organize skill games. Legal entities can supply all types of gambling entertainment provided for by Estonian legislation. 

Online gambling in Estonia 

Online casinos are allowed in Estonia. All gambling games licensed in the state are provided on online platforms. Gambling site operators are required to provide information on how to protect users' personal data and transactions. It is also necessary to prove the security of methods for depositing and withdrawing funds from the casino account. 

The following users are allowed to play on online platforms: 

• over 21 years old - if the online casino specializes in games of chance and skill; 

• over 18 years old - if we are talking about sweepstakes; 

• over 16 years old - if the resource provides access to lotteries. 

The Estonian authorities do not impose strict requirements regarding the language and currency in online casinos. In the ratings of popular platforms, in addition to English-language sites, there are sites in Estonian.  

Popular slot machines in Estonia 

Land-based and online casinos in Estonia offer a wide range of slot machines from various manufacturers. The portfolio of the largest developers has several slots that are in great demand among Estonian users: 

• IGT: Cleopatra, Noah's Ark and Kitty Glitter; 

• Greentube: Book of Ra, Lucky Lady's Charm and Sizzling Hot; 

• WMS: Zeus III, Crystal Forest, Raging Rhino; 

• Ainsworth: Flying Horse, Eagle Bucks, Mustang Money; 

• Developments of other companies (Playtech, NetEnt, Evolution Gaming). 

Greentube slot machines are especially popular in Estonia. In 1993, the Austrian company opened its branch on the territory of the state, and since 1996 it has become an official partner of Estonian lotteries. 

Playtech slots are also in demand. The main office of the manufacturer is located on the Isle of Man. A branch of the company operates in Estonia. 

Gambling software developers 

In addition to branches of large companies, their own companies operate in Estonia. They develop gambling software or part of software solutions for world famous corporations. These businesses include: 

• Dervico is a studio founded back in 1996. The office of the company is located in Tallinn. The company develops mobile applications and PC slots for Microgaming;  

• Foxium is a relatively young studio that emerged in 2015. To date, the company's portfolio contains five slots. These are five-reel slot machines with a theoretical payback percentage of over 96%. All kinds of bonus features are implemented on them: free spins, bonus games, Wheel of Fortune with additional prizes. 

There are not so many national Estonian companies. However, the online gambling market is constantly evolving. This serves as fertile ground for the creation and development of new development studios. 

Prospects for the development of the gambling business in the country 

Despite the fact that the gambling business in Estonia is strictly regulated by the authorities, the legal framework allows the gambling industry to develop actively. The state supports the organization of new land-based casinos and online platforms, and imposes a high tax on gambling enterprises. The funds received from the casino are directed to the development of culture and sports, the creation of social programs and the financing of medicine. 

In addition, in Estonia, players can independently refuse to play in land-based establishments and casino sites. Any user can add himself to the black list if he suspects the development of a gambling addiction. Thus, in 2016, more than 2,000 gambling fans voluntarily refused service in physical and virtual casinos. Today, most of the players in Estonia are foreign tourists. 

conclusions 

Gambling business in Estonia is a stable source of government revenue. The country's budget is replenished through the acquisition of licenses and permits for the provision of gambling services. In addition, all games (depending on the variety) are taxed. So, for table entertainment and slot machines, operators pay a fixed amount, and in addition, a certain percentage of the bets made at the table or on the slot. Lottery license holders give the state 18% of their income, and sweepstakes operators - 5%. These funds are used to develop the country's economy and are distributed to finance various cultural areas.