iGaming Destinations in Eastern Europe: 2024 Opportunities and Challenges

Fresh and promising markets present a unique ground for the online gambling segment. They are typically characterised by lucrative possibilities and minor issues to deal with. A mix of liberal regulations and demanding restrictions makes Eastern Europe a patchwork of diverse destinations.

The most notable representatives of this location:

• Ukraine;
• Estonia;
• Latvia;
• Lithuania.

Ukraine: A Reopened Market with High Stakes

In 2009, the country’s authorities imposed a blanket ban on all forms of gambling. However, the jurisdiction reopened in the summer of 2020 and reignited interest among local and international investors. The new legislation permits online and ground venues, betting shops, gaming halls, and poker rooms. Each format has distinct licensing requirements and fees based on geographical location.

Key highlights of the region:

1. Registration and cost. High permit value and a diversity of other obligatory instalments make the state financially challenging.
2. Taxation. A proposed axing of the reduced 2% fee level introduced during the war is under consideration and can potentially impact a company’s profitability.
3. Regulatory risks. Demanding prerequisites and high costs create obstacles for some operators who want to enter the destination and must employ enhanced initial investments.

Despite these challenges, Ukraine remains a promising region for the gambling sphere. Substantial growth potential is a crucial appeal for platform owners who aim to introduce their brands in the area.

Estonia: A Fully Regulated Market

A well-developed iGaming sector has been legal and open since the 2008 Gambling Act and its amendments. Online lotteries are state-run, while games of chance and betting products are available to licensed entrepreneurs.

Key highlights of the region:

1. Licensing. Unlimited permits are valid for up to 5 years. Registration fees range from €32,000 to €48,000.
2. Taxation. A 5% fee on net gaming revenue is applied on all formats and is always due monthly.
3. Market expansion. The GGR grew from €60 million in 2019 to €78 million in 2020. As of the end of 2024, with a compound growth rate of 4.33%, the value of the sphere is expected to elevate to €192 million.

Estonia’s structured regulatory environment and consistent improvement make it an attractive zone for iGaming business enthusiasts.

Latvia: Steady Rise with Regulatory Oversight

The closely watched iGaming market is open to licensed private operators, except for state-run lotteries. The guiding law to establish the national entertainment standards was designed in 2005, with subsequent amendments in 2021.

All nuances about registration and legal issues are discussed through the Lotteries and Gambling Supervisory Inspection of Latvia. The market saw a 10.5% increase in GGR in 2019 and reached €307 million.

Key highlights of the region:

1. Licensing. Unlimited operational permits are available for offline and online services. Annual renewals are obligatory for every market participant.
2. Fees. If an entrepreneur wants to enter the region, €427,000 for a combined offline and online licence is the most common choice. However, the option of €200,000 for web-based activity, with annual renewals at €37,000, is also possible.
3. Taxation. Regular contributions are built on the gross gaming revenue and are fixed at 10%.

Latvia’s regulatory framework supports steady improvement of the market situation. At the same time, the government is considering measures to reduce access to gambling, which can become a challenge for entrepreneurs who have not entered the sector yet.

Lithuania: Explosive Growth through Online Betting

The country’s iGaming niche witnessed a substantial improvement in 2019. The primary reason for this was the sportsbook direction. The jurisdiction saw a nearly 45% year-on-year increase in online betting. As a result, a 13% rise in GGR brought the market volume to €113 million. Today, the sphere is valued at almost €340 million.

Key highlights of the region:

1. Licensing. Operators must run physical establishments to acquire online permits. The number of formats to apply is unlimited.
2. Fees. A combined ground and web-based licence starts at around €260,000. Larger operators have to pay more due to their broader coverage.
3. Taxation. All deductions are capped at 13% of the gross gaming revenue of the company.

Proposed amendments, including flat fees and online-only permits, are expected to shape the market further in the upcoming years.

The Main Things about the Online Gambling in Eastern Europe

As a complex and dynamic location, the region offers possibilities and certain issues for operators to deal with. Proper approach to project development and adequate support guarantee high profitability of the platform elaboration in any of the described jurisdictions.

Key highlights of online gambling in Eastern Europe:

• Each country has distinct regulations, from the liberal arena of Estonia to the more restrictive environments of Lithuania.
• Thanks to recent legislative improvements and expansions, Ukraine and Estonia show significant growth potential.
• High licensing costs, varied tax regimes, and legal risks are common challenges that operators must navigate.

An in-depth understanding of the evolving markets and specifics of regulatory environments is crucial for success in the iGaming niche.