Building a gambling business in Estonia is legal in case you have gambling license in Estonia. Gambling industry is regulated by law and is supervised by the Estonian Tax and Customs Board. The Gambling Act regulates the work of any organization related to gambling entertainment.

The gambling industry is developing offline and online equally. The organization of physical gambling spots requires a license and permission. The creation of online gambling platforms also requires a license and permission. Since the gambling industry is partially nationalized, foreign operators must obtain permission to provide services.

Gambling License in Estonia and its Features

Games of Chance – the outcome of the game depends on chance. The game is played using a mechanical or electronic device or with the participation of the game organizer; Including dice games, card games, roulette or lottery drum, slot machines.

Gambling License in Estonia

Toto / Parimutuel betting – the outcome of the game depends on whether the event on which the player has bet occurs. The outcome of the event is beyond the operator’s control. The winning depends on whether the bet is correct, the amount of the winning depends on the size of the bet, and the winning odds determined before the bet was made.

Bookmaker – a company that operates online or offline tote, accepts bets on the outcome of events, ensures the payment of winnings, retains losing bets, and takes a commission for the provision of services.

Bet – as amended by the current Law, a bet means an amount of money paid for participation in a game, or a financial obligation in order to acquire the right to participate in gambling.

Game of Skill – the outcome of the game depends on the player’s physical skill, ability, or knowledge. The game is played using a mechanical or electronic device. The prize is non-cash, the value is not more than 50 Euro. The prize can only be distributed by the slot machine, and the organizer of the game cannot exchange the prize for money or services.

Gambling License in Estonia

The Process of Getting Gambling License in Estonia

Companies applying for gambling permit in a country where gambling is regulated must:

Register a company office in Estonia (a real office is not required, but recommended);

Provide technical support for the resource;

Provide a business plan and financial forecast for the next 3 years;

Provide the required package of documents;

Connect the online internal accounting system to the Tax and Customs Board;

Establish an internal accounting system acc. S2K1T2 security requirements;

Keep all transactions within the system for at least 400 days.

The software servers must be located in the EU; all data on servers must be included in the Regulatory and Technical Documentation.  Description of the software architecture and an independent expert assessment of the software must be included in the Regulatory and Technical Documentation. Data on the payment solutions used, settlement accounts used to process payments must be included in the Regulatory and Technical Documentation. Confirmation that the software contains elements of customer identification and to identify possible transactions related to money laundering must be included in the Regulatory and Technical Documentation.

Gaming equipment used to organize online gambling must ensure:

Random game result outside the influence of the operator or another person;

Data that is of great importance for the game must be stored independently and be available for recovery in case of interruption of the game, also all cases of interruption of the game, the results, and any changes made to the system must be registered in the system. All of the data given must be retained for a minimum of 5 years.

The Tax and Customs Board may at any time require an independent expert assessment of the compliance of the software used with the requirements provided.

Registrations fee

Examination of an application for a license is subject to a state fee: games of chance – EUR 47,940; totes EUR 31,960; games of skills – EUR 3,200.

Gambling License in Estonia

Gambling License in Estonia – The Term

Term for Obtaining a Gambling License in Estonia

The Tax and Customs Board will provide an initial response no later than 3 business days after the submission of the application.

The Tax and Customs Board takes a decision to issue or refuse a license within 4 months after receiving all the necessary documents and data, no later than 6 months after receiving the application.

Term for Obtaining a Permit

The Tax and Customs Board will provide an initial response no later than 3 business days after the submission of the application.

The Tax and Customs Board takes a decision to issue or refuse a license within 2 months after receiving all the necessary documents and data, no later than 4 months after receiving the application.

Launching an online casino or online tote in Estonia takes about 1 year, including a full legal setup, application submission, and consideration.

Gambling License in Estonia

Application Requirements for Gambling License in Estonia

A holder of gambling license in Estonia must be a reputable legal entity and the organization of gambling is his only activity. A legal entity with share capital or equity capital of at least EUR 1,000,000 (games of chance); at least EUR 130,000 (totes); at least EUR 25,000 (games of skill).

The list of significant shareholders and/or managers of the gambling organizer body must not include those who was convicted in court and previously organized gambling without a license or permission, or with a license invalidated as a result of a violation of the law. Also applicants must not committed a gross managerial error which led to the company’s insolvency.

When deciding on a gambling license in Estonia, the applicant must undergo a gambling compliance check, a check of his payment behavior for the previous 3 years, and, if necessary, additional background checks to ensure the credibility and good reputation of the applicant.

Gambling License in Estonia

Types of Gambling Licenses in Estonia

Gambling License in Estonia

You must apply for a Gambling License if you wish to organize gambling. The license is issued independently for games of chance, totes, and games of skill. The license entitles you to apply for an organization permit, is valid indefinitely, and is issued by the Tax and Customs Board.

Gambling Permit

You must apply for a gambling permit if you wish to organize gambling and you already have a gambling license.

Gambling Permit qualifies to open gambling spots or online gambling sites and is issued by the Tax and Customs Board. Gambling Permit is granted for a period of 5 to 20 years.

Online Gambling License in Estonia

Attention! You must pay a state fee before applying! If you apply for an Online Gambling Permit, you must provide the following:

Overview of security measures at the site and rules of the game;

Information on the protection of game participants acc. to the Law on Personal Data Protection;

Information about the equipment used, also data on the software used for organizing Online Gambling;

An independent expert’s assessment of the compliance of the software used with the requirements established in Art. 54 of the Law on Gambling;

Telephone numbers, online addresses, and full contact information that allows participating in gambling;

Information about the current accounts used to make payments between the organizer and the players.

We, at Private Financial Services have experience in setting up gambling structures all around the world. Our portfolio of licensing includes the following countries: Gambling license in Estonia, gambling license in the UK, Guernsey, Alderney, Malta, Lithuania, Sweden, Curacao, Isle of Man and even Russia.

We will take care of all matters: analysis of your business model and country selection, formation of the legal entity, assistance with third party providers and banks, preparation of all internal policies and procedures, assistance with business plan and program of operations, compliance, assistance with application, and documents preparation to apply for gambling licenses, communication with regulators.

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