Estonia is one of the first countries in the EU to legalise and regulate all iGaming areas fully. Today, the state is the largest IT hub in Northern Europe with a highly developed infrastructure, business-friendly legal regime, and transparent rules. It attracts international investors due to its unique e-residency program and progressive digitalisation.
The Casino Market team has prepared a detailed review of the Estonian online gambling vertical. You will learn about the current state of the niche, a prognosis for further growth, and opportunities for operators.
Our experts can provide you with additional advice and practical assistance on developing an iGaming startup or connecting effective software to existing projects.
Central Facts and Statistical Figures
According to forecasts from the analytical agency Statista, by the end of 2025, the total volume of the Estonian web entertainment sector will reach $452.5 million. The CAGR parameter of the vertical will remain at 2.94% until at least 2029.
Reasons for the sustainability and positive dynamics of the industry’s growth:
- a high demand from the population;
- a very favourable regulatory environment;
- openness to international investment and cooperation;
- good tech infrastructure for working in the digital segment;
- a recent tax rate reduction for gaming business representatives.
Over 70% of citizens have bet real money at least once in their lives. About 30% of adults in the country have tried online gambling. Analysts believe that the web share will continue to grow as the world’s technological breakthrough progresses.
Estonia’s Tax and Customs Board reported that the sphere’s revenue has more than tripled in recent years: from €105 million in 2020 to €336 million in 2022. At the same time, the ARPU metric reaches around €150 per month. This parameter indicates high involvement of the population with financial maturity.
Popular Gambling Categories in the State
Estonians are fond of various formats: from traditional fruit slots to innovative blockchain-based solutions.
The most sought-after products:
- Casino entertainment. The audience regularly participates in all types of card and table games. Blackjack, baccarat, and roulette are especially popular. Live dealer titles, arcades, and instant-win developments also demonstrate strong growth.
- Sports betting offers. The country’s largest bookmaking markets cover soccer, basketball, beach volleyball, cricket, ice hockey, and cycling. Local players are attracted to both large-scale international events and regional matches.
- Poker. Estonians are frequently engaged in single sessions and tournaments alike. Texas Hold’em is considered the leader in both the land-based and online segments. The same variation occupies the top ratings in the live casino niche.
- Lotteries. They remain the most popular offline, especially in small towns and rural areas. The sector is traditionally in demand among older players and women. Interest is consistently high in all formats, from scratch cards to bingo and keno draws.
- Digital innovations. Young audiences prefer skill-based entertainment and products that support cryptocurrencies. A wide range of bets on eSports has been a stable trend in recent years.
Demographic Profile of Estonian Players
According to Gaming Intelligence’s analytics, the country’s gambling community is influenced by a variety of factors, including unique cultural characteristics and high digital literacy.
Characteristics of the average Estonian online casino customer:
- Age and gender. The vast majority of visitors to web platforms are 30–39-year-old men. Lately, the distribution has begun to shift. Now, the digital segment is experiencing the gradual rise of the female audience and the 18–35 age group. Land-based games are still the prerogative of suburban residents and men over 40.
- Preferences. Young people and the urban population are strong fans of online platforms. The range of requests is wide: from slots to poker and sportsbooks. In rural areas, people play lotteries more and visit ground venues. The internet sector accounts for 25% of weekly bets, while the share of offline participation is 16%.
- Tech characteristics. Over 60% of operators’ digital traffic comes from smartphones and 30% from desktops. Tablets cover the rest. The majority of casino clients are ethnic Estonians. This group makes up 70% of all users in the region.
- Motivation for gambling. Thanks to a well-developed digital culture, Estonians view real-money bets as entertainment or a form of leisure, rather than as a way to improve their financial situation. Against this background, products with socialisation elements, such as chats, ratings, multiplayer quests, etc., show greater engagement.
Legal Framework and Changes in the Country
The local gaming sector is regulated by the Gambling Act 2008. Meanwhile, the EMTA body is responsible for overseeing the proper implementation of standards.
All types of entertainment are permitted, but unique age restrictions apply to different categories:
- 21+ for casino titles;
- 18+ for sports wagers;
- 16+ for lottery draws.
Requirements for Licensees
To launch a niche project in the country, an entrepreneur must obtain 2 documents:
- a certificate for activities, which is issued indefinitely and allows the overall distribution of products and services;
- a permit for operation for 5 years to link the business to a specific type of games and technical systems.
Each application goes through a mandatory 2-stage review procedure. Licensees can receive a preliminary response within approximately 3 work days, while in-depth monitoring and compliance verification takes from 4 to 6 months.
Requirements for an Estonian certification:
- connection to EMTA’s reporting e-systems;
- a detailed business plan with a clear AML strategy;
- a paid state duty of €47,940 for entertainment of luck;
- mandatory indication of software and server equipment location;
- registration of a legal entity in the country or the European Union;
- no criminal records for the enterprise’s owners and C-level managers;
- certificates of 3rd-party monitoring agencies and results of state compliance checks;
- a minimum share budget of €25,000 (skill-based games) to €1 million (online casinos).
Gambling Field’s Tax System
The Estonian government has initiated a large-scale reform of the market to make it even more sustainable and attractive for investors.
One of the 1st steps was to lower the fee on “net bets” (wagers minus payouts):
- in 2025, a 6% tariff is actual;
- by 2028, the coefficient will be gradually reduced to 4%.
For the lottery vertical, the volume of commissions remained unchanged, 22%, applied to ticket sales. The same percentage is set for the corporate income.
In the land-based sector, a fixed amount is charged per equipment unit:
- €1,406 for tables;
- €300 for slots.
Another important nuance is that tax returns must be filed monthly. As expected, the initiative saw a positive response from niche enterprises.
Upcoming Legislative Shifts
Besides reducing the fiscal rate, the Estonian regulator plans to make other amendments to the Gambling Act. The full list will be published at the end of 2025, and the new rules are scheduled to come into force in H1 2026.
The most significant changes:
- Optimisation of tech standards for the web niche. Operators will be advised to review bonus strategies and implement effective tools to prevent excessive risk from real-money games.
- Expansion of player self-exclusion tools. The country’s HAMPI program will be modernised and strengthened with a function for accepting requests from 3rd parties (for addicts’ family members) and the mandated court.
- Shifts in the licensing process. The Estonian regulator intends to increase the speed of processing applications and, in the future, completely switch to a digital certification format without unnecessary bureaucratic red tape.
There are no current plans to introduce new or stricter rules on work in the segment. The authorities are considering several options to strengthen player protection, but so far, these are preliminary sketches.
The situation is similar in the economic sphere. The state’s Ministry of Finance has initiated a tax increase in 2024 and is not going to make any other amendments for now. All government bodies are aiming to achieve the most sustainable balance between regulation and the industry’s long-term growth.
Key Players in the Local Entertainment Market
Estonia’s iGaming vertical is represented by approximately 30 operators. The list includes both local studios and large international corporations.
Let us list the segment’s leaders:
- TonyBet and OlyBet are the top gambling brands in the Baltic region, demonstrating steady growth;
- Bet365, Betsafe, and Unibet are global suppliers, boasting a large share of regional traffic;
- Ultra.io and GameSwift are ambitious startups leveraging advanced mobile-1st and AI-based tools.
With its developed IT infrastructure and loyal regulatory environment, the country has earned a reputation as a reliable digital hub for bold technological experiments and long-term partnerships.
An additional benefit of working in the market is access to top casino payment systems such as Trustly and Skrill. Local banking institutions are also popular.
Industry Trends and Growth Forecasts
Here are 4 key trends that will set the direction for Estonian gambling:
- increasing frequency of using crypto assets;
- an enlarging number of available payer self-exclusion tools;
- a significant shift towards online gaming and a boost in mobile traffic;
- mass adoption of real-time technology in client support, live products, promos, etc.
With the current strategy, the sphere will continue to evolve steadily and could join the largest sources of the country’s GDP in the future.
Regulatory and operational factors that may challenge the industry:
- long-term restrictions on ads and sponsorship;
- delays in opening accounts in local banks for non-residents;
- requirements to provide reporting documentation only in the national language;
- simplified access for international suppliers, complicating competition for smaller brands.
The Main Things About the Gambling Business in Estonia
The country has managed to create a safe and progressive environment for digital commerce and the iGaming vertical, precisely.
The market is very attractive to investors due to the following features:
- large-scale restructuring and tax rate reduction for different niches;
- possibility of remote work in the segment and registration of electronic residency;
- potential transition to full-fledged online licensing and minimisation of bureaucratic procedures.
To find out more about the nuances of opening a niche business in different jurisdictions and order the development of a turnkey startup, feel free to contact our experts.
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