Launch a Gaming Site in Estonia in 2024: a Detailed Guide

The country is a symbol of stability and prosperity. Here, all types of entertainment are permitted, the regulation is clear, and taxes are low.

Experts of the Casino Market studio will explain why it is worth opening a virtual casino in Estonia and what documents need to be prepared. We will also give advice on which payment system and content to order. Order Service

Brief Information about the Jurisdiction

It is located in northern Europe and can boast of a solvent population that likes to place bets. The state is part of NATO and the EU. Besides, it has a well-developed economy and a high standard of living.

The gaming sector in Estonia was banned for a long time. The first land-based establishments and bookmakers’ offices appeared in the mid-90s. Currently, the main law that regulates such a niche is the Gambling Act 2008.

The document defines:

• requirements for working in the market;
• certification procedure;
• liability for failure to comply with the rules of fair and transparent gaming.

The digital industry emerged in the mid-2010s as a result of the active spread of smartphones in the region. Today, the majority of online players (65%) are owners of mobile devices. Only 33% of customers prefer to place bets on home PCs.

Virtual platforms are extremely in-demand among the young population. These are people aged from 25 to 34 with a stable income and a high interest in gambling. About one-third of users (31%) visit casino portals every week, and more than half (52%) of clients do it at least once a month.

The Kantar Emor information site published that the number of online players in Estonia has doubled over the past 5 years. This was affected by both the closure of offline locations during the pandemic and the general reorientation of entrepreneurs and their customers to the digital space.

Unlike many European regions, the minimum age limit in the jurisdiction varies:

• 16 years for participation in lotteries;
• 18 years to be engaged in the wagering activity;
• 21 years for visiting virtual casinos.

Currently, the local market is dominated by draw lotteries. The popularity of playing for money is only gaining momentum, so operators have room to grow and develop.

How to Launch a Casino in Estonia

Let us consider the main steps to creating a successful iGaming startup in this stable European region.

Registration of a Legal Entity

The opening of a firm in the company is not a mandatory condition. However, such an option will facilitate the entrepreneur's work in the future. They would be able to open access to preferential loans, take advantage of tax breaks, and much more.

The local authorities have developed a convenient online registration system. Thanks to it, all actions can be performed remotely, without physical presence in government agencies.

The procedure for creating a company includes the following stages:

1. Obtaining an electronic residence. This is a digital ID that allows operators to generate and sign documents in digital form. An application can be submitted online through the unified public services portal.
2. Choice of the company name. Entrepreneurs can check whether it is possible to use the desired option or not in a special commercial register.
3. Brand legalisation. It is important to provide information on shareholders, founders, and ultimate beneficiaries (UBO), as well as rent a physical office. After that, the businessmen enter all the requested data on the government portal and pay a fee of €190. The application approval period is up to 5 working days.
4. Opening a bank account. This can be done at any local commercial financial institution (it will be necessary to confirm the legal entity’s existence).
5. VAT registration. The option is mandatory for those project owners whose anticipated annual turnover will exceed €40 thousand.

Acquisition of a Licence

The Tax and Customs Board is responsible for processing and issuing permits.

In Estonia, 2 types of documents are required:

1. Activity certification for organising casino entertainment. It confirms the financial stability of the firm and the professionalism of its executives. The licence’s validity is unlimited.
2. Permit for remote placement of bets. It must be obtained for each business direction.

It is possible to obtain a certificate to:

• open a land-based casino;
• create a bookmaker's office;
• conduct lottery draws;
• provide games of skill;
• launch an iGaming startup.

The cost and conditions for receiving the second type of certificate for remote gambling depend on the type of services that entrepreneurs will offer to their clients.

Key requirements for applicants:

1. Form the authorised capital. For the online vertical, this is €1 million. The same amount must be deposited into a reserve bank account by those operators who plan to accept bids in traditional locations or organise lotteries. For the owners of betting shops, the sum is €130 thousand.
2. Pay the state fee. For digital and offline casinos, the cost of the service is €47.9 thousand, and for poker rooms — €3.2 thousand.
3. Transfer a contribution for registering an application. The amount is the same for all types of gambling, €3.2 thousand.

The average period for obtaining a licence is 4 to 6 months. The authorities carefully study the financial and technical documentation, familiarise themselves with the business plan, and interview key persons of the company.

Particular attention is paid to founders who have significant control (more than 10% of the shares). They cannot have a criminal record or a court decision made in connection with a bankruptcy case.

The operating permit for the acceptance of remote bids is issued for 5 years.

Installation of the Entertainment Platform

This is the backend based on which the future website will work. The portal must be highly productive, adaptable, and secure.

An important point is the presence of responsible gambling mechanisms:

• restraints on the number of bets, frequency of spins, and total time spent on the digital resource;
• messages with offers to have a break and rest;
• access to self-restriction and self-exclusion registries.

Estonia is one of the few jurisdictions that do not require the location of game servers on their territory. The country in which the data centres will be located must be a party to the Convention on Cybercrime adopted in 2001.

The activities of entrepreneurs must also comply with the GDPR (the EU’s General Data Protection Regulation).

Purchase of Casino Solutions

These are slots, table entertainment, cards, arcades, multiplayer fishing, and other content. Most products include a certified random number generator.

The independent verification is carried out by:

• eCOGRA;
• QUINEL;
• BMM TestLab;
• iTech Labs, and other reputable laboratories.

Locals love Baltic manufacturers and willingly choose the offers of domestic providers. Thus, Playtech digital slots and BetGames TV live options are extremely popular.

Choice of Sports

The secret of the bookmaker's success is a balanced event line with various odds and a large selection of auxiliary bids.

Estonian players respond equally well to summer and winter disciplines. In the first category, football, basketball, cricket, cycling, and athletics are worth highlighting. Users are proud of the famous cyclist Jaan Kirsipuu and enjoy watching his performances and placing bets on his victories.

The country’s representatives show good results in winter sports. These are ice cricket, hockey, ski jumping, alpine, and classic skiing. The state regularly hosts stages of the World Cup in figure skating and skiing.

Connection of the Payment System

The region is distinguished by a wide variety of settlement methods. Gamblers prefer online acquiring, transfers in eWallet services, and account replenishment through land-based terminals.

The obligatory condition is support for the following local solutions:

1. Wallester. This is a licensed fintech company that provides businesses with unlimited card service capabilities. Its main partner is the international Visa system.
2. Revolut. This is a British brand that has received a local certificate. The main advantage of the enterprise is support for cryptocurrency transfers. The Estonian government legalised the circulation of digital assets several years ago, which gives operators and their clients huge advantages.
3. Paysera. The Lithuanian provider supports fast bank transfers. They are highly secure and have a minimal commission level.

Development of a Marketing Strategy

The involvement and retention of the audience are the keys to the prosperity of iGaming startups.

Like residents of other European countries, Estonians value information, as well as truthfulness, trust the opinion of the authorities and are cautious about casino enterprises. To speed up the people’s decision to deposit funds, it is worth offering customers personal bonuses.

The government prohibits direct advertising of gambling, with the exception of messages:

• on the websites of licensed operators;
• received due to the subscription by email, post, and phone.

The TTJA government body exercises control over compliance with advertising requirements. The fine for the first offence is €10 thousand, and €50 thousand for each subsequent violation.

Why It Is Worth Opening a Virtual Casino in the Region

Let us consider the main advantages of working in this market:

1. International prestige. The country has a decent standard of living, as well as a stable political and economic situation. The jurisdiction has a good reputation, which attracts many investors and businessmen.
2. Developed community. Estonia is home to a huge number of payment providers, program component vendors, and security software suppliers. The state annually hosts leading entertainment exhibitions and conferences.
3. Stable legislation. The regulatory framework has not changed for over a decade. Companies can invest in long-term projects.
4. Low taxes. Online casino owners pay 6% of the amount received from bets. This is a small fiscal burden for the European market, which distinguishes Estonia from other jurisdictions on the continent.
5. Cryptocurrency circulation. Operators can legally accept bids and pay out winnings in digital assets. The region was one of the first in the EU to adopt clear and understandable legislation related to this type of funds.

The Main Things about Launching a Gaming Site in the Jurisdiction

The country is characterised by legal entertainment for money, a high standard of living, and a well-developed economy.

Key aspects that business owners need to take into account:

• To create an online casino, it is necessary to legalise a company, receive a licence, create a platform, and order relevant content. Entrepreneurs will also need a modern payment system and an effective marketing campaign.
• Legal work in the local market involves obtaining 2 types of documents. These are an activity certification for providing casino solutions and a permit for remote placement of bids. The first option is valid indefinitely, and the second is issued for 5 years.
• The advantages of working in the region include global prestige, a developed community, stable legislation, and low taxes. Estonia was the first in the EU to accept cryptocurrency bets.

The Casino Market studio supplies turnkey products for a quick launch of iGaming startups in the country. From us, you can order a ready-made platform, a White Label portal, and a sportsbook script.

We also offer the following useful services:

• creation of HTML5 slots based on individual sketches;
• installation of a payment system;
• security software connection;
• writing a business plan;
• promotion of already implemented projects, and much more.

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James Burton The Casino Market partner, the owner of the gambling establishments’ network

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