Opening a Casino or Betting Business in the Nordic-Baltic Region

Country

Regulation Aspects

Denmark

The revenue from the industry is impressive — in 2020, the iGaming sector's income was 330 million euros.

The autonomous areas differ in regulation: Greenland introduced the Danish Gambling Act developed on the mainland, while the Faroe Islands completely prohibit the internet wagering segment.

Almost all types of entertainment are allowed in the country:

• casino games (slots, card emulators, bingo, etc.);
• wagering excluding virtual sports offers;
• monopoly-owned lotteries.

To open a business in Denmark, an operator needs to:

• apply for a licence (this requires staying in the European Union);
• pay a fee for the obtained permit;
• send monthly commissions in the amount of 28% of the GGR;
• renew the licence every 5 years

Sweden

The market offers favourable conditions for businessmen. Since 2019, almost all online games have been permitted in the state. The sphere is controlled by the Gambling Act and the Gambling Ordinance.

The digital entertainment market grew significantly during the Covid-19 lockdowns, bringing in €2.44 million in 2020.

The features of the industry regulation are as follows:

• the legality of all wagering activities, as well as virtual and non-sports betting;
• an unlimited number of licences valid for up to 5 years;
• fair annual fees depending on business profits (from 3,000 to 50,000 euros);
• 18% imposition of the monthly GGR

Finland

The government created the state gaming agency by combining 3 antecedent firms — Veikkaus, Raha-automaattiyhdistys (RAY) and Fintoto.

The state is undergoing the following legislative changes:

• strengthening player identity verification;
• enhancing the system of banning casino promotion.

On the territory of the Aland Islands, there is a regional monopoly provider — Paf. The brand offers terrestrial and web wagering services, earning an annual net profit of over €20 million

Norway

• Norsk Tipping — managing draws, casino games and sportsbooks;
• Norsk Rikstoto — controlling the sector of horse racing.

The authorities tried to amend the legislation for a more accountable gaming policy in 2020. There were also attempts to revoke the rights of 2 monopolies, but the decision was declined.

Residents of the country can only play on the web resources of foreign companies

Iceland

This is by far the strictest market in terms of wagering regulation. The majority of entertainment is still prohibited. Charity draws are the only legal games in the country.

Such entertainment projects can only be run by 2 enterprises:

• the University of Iceland;
• the Íslandsspil association.

All funds collected from those draws are spent for the activities of charity institutions

Estonia

The country is famous for its positive attitude towards gaming. The industry is full of diverse legal amusement brands. In 2008, the principal Gambling Act was issued.

These gambling services are the most popular in Estonia:

• internet draws, owned by the local monopoly;
• games of chance (slots and others);
• bookmaker solutions.

In Estonia, the percentage of taxation is relatively lower than in other Nordic and Baltic countries. It is only 5% of the company's net monthly income

Latvia

The state authorities allow and control various forms of amusement but draws are managed by Latvijas Loto.

The main regulator of the wagering industry is the Lotteries and Gambling Supervisory Inspection of Latvia (IAUI).

The key peculiarities of the country's entertainment environment are:

• high profitability (the industry brought in 307 million euros in 2019);
• a wide variety of wagering amusement (slots, dice, sports betting solutions, etc);
• an unlimited number of licences for both terrestrial and internet businesses;
• taxes in the amount of 10% of the entrepreneur's gross profits

Lithuania

The country’s gaming sector is profitable, competitive, and has been monitored by the Gambling Control Authority since 2001.

The main characteristics of the industry are as follows:

• the Lithuanian government allows licensed entrepreneurs to offer all traditional entertainment;
• the number of permission documents is not limited;
• taxation is set at the level of 13% of the entrepreneur's GGR;
• the smallest obligatory capital for the activity is about 1 million euros