Estonia
Situated on the Baltic Sea, Estonia is a small country with a population of just 1.3 million. The online gambling industry in Estonia is still quite young but now people over the age of 16 can play lotteries and online gambling is available to those who are 21 years old or over.
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Estonia Gambling Licensing
Online gambling was illegal in Estonia up until 2009, when the government began to regulate the industry.
At first only gambling companies owned in Estonia were granted licences with offshore operators only being allowed to enter the market as recently as 2011. However, these offshore companies did need to have their servers based in Estonia to comply with regulations. This rule has since been lifted.
The Estonian Tax and Customs Board is the main body responsible for overseeing and regulating online gambling. This organisation works under laws passed in the Gambling Act of 2008 and the Gambling Tax Act of 2009.
In order to to operate in Estonia online gambling companies need two licences. Firstly, an Activity Licence has to be applied for. This licence confirms that the company is trustworthy and meets the standards and regulations enforced by the Gambling Act. Activity Licences are not transferable and are granted for an unspecified length of time.
Once companies have obtained an Activity Licence they then need to apply for an Operating Permit. This license corresponds with the type of games offered and is valid for up to 20 years. The state fee for an Operating Permit is €3,200 for organised gambling (except lotteries, which need to pay a fee of €640). It's worth noting that lotteries can only be run in Estonia by state owned public limited companies, such as market leader Eesti Loto, with all proceeds going to not for profit organisations.
Both licences are available through the Estonian Tax and Customs Board and fees must be paid up front.
All online gambling operators have to pay five percent of their gaming profits in tax to the Estonian government. Regulations state they must also ensure that over 80% of the total amount of all bets is paid back out to players as winnings.
As the industry in Estonia has only been legalised relatively recently, there are still a limited number of online casinos operating in the country. However, many of these welcome players from across the EU, including those in the UK, and some accept UK Pounds Sterling as a currency. Many casinos coming under Estonian jurisdiction offer games from respected developers such as Microgaming, NetEnt and Playtech, which means you're sure to be able to find your favourite games at an Estonian licensed online casino.
