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Buy Online Casino in Estonia: Profitable Cooperation with 2WinPower

Starting a gambling platform in Estonia will be a good solution for entrepreneurs who are trying to enter foreign markets. The country was one of the first to legalize iGaming and created excellent conditions for industry development.

If you want your gambling project to be ready in the shortest time possible, feel free to contact specialists from 2WinPower for high-quality assistance.

Key Features of the Jurisdiction

Gaming business in Estonia: legal background

The gaming business in Estonia is an everyday entrepreneurship activity, with an interesting history and frequent changes in legislation. The first land-based establishments were allowed just before the collapse of the USSR. They were localized in the capital of the country – Tallinn – and large resort cities.

Over the 30-year history, the regulatory framework has changed several times. The most significant innovations occurred in 2009 when the state dealt with the terrible consequences of the global economic crisis. At this time, the first online casinos in Estonia began to open, not allowing the industry to decay completely. The local government has taken several measures to organize the operational process of gambling platforms for diversifying the gaming activities for both amateur and professional players.

Legal Background

  • 1995 – the adoption of the first gambling law in the country. The establishment of the Estonian Gambling Operators Association.
  • 2009 – approval of the second gambling law.
  • 2010 – issuance of first permissions to online casinos in Estonia.

Gambling licensing in Estonia belongs to the authority of the Tax and Customs Board. The regulator draws up activity permits and ensures that licensees fully comply with their obligations.

In general, the industry is equally developing in a land-based and online environment. Real-life facilities are focused on tourists (mainly from Scandinavia and the CIS countries). As for the гnternet sector, gambling licensing in Estonia makes the state one of the most popular offshore zones.

Benefits of Gambling Licensing in Estonia

Gambling licensing in Estonia: benefits

Launching an online casino in Estonia brings the operators the following benefits:

  1. Entrance on the European market. Operation in this jurisdiction is suitable for the operators who want to expand their business. The launch of an online casino in Estonia allows attracting a solvent audience from Europe.
  2. Image improvement. The growth in popularity and relevance of the brand is directly related to the legal destination of the company’s operation. The Baltic States in this regard is extremely attractive, especially for beginners in iGaming.
  3. Stable legislation. It has been brought to the standards of the European Parliament and has remained unchanged for 10 years. Investors can safely rely on long-term cooperation with a swift period of return. The country will be appealing to entrepreneurs who enjoy balanced financing.
  4. Loyal taxation. The gaming business in Estonia is characterized by low taxes if compared to other EU countries.
  5. Extended validity of the license. The regulator draws up a document for 10 years, which is a record indicator. The ability to obtain a permit for such a long period is another decent reason to work in a jurisdiction.
  6. No binding to the local server. Estonia is one of the few states that doesn’t require hosting on domestic server equipment. It significantly minimizes the cost of launching a gambling project.
  7. Access to advanced technology. The country has a well-developed telecommunications network with innovative 4G coverage. Also, dozens of IT companies provide high-quality software support.

Types, Terms, and Cost of Licenses

The Estonian regulator identifies such varieties of gambling entertainment: 

Type of permit

State toll for the application consideration, € thousand

License cost, € thousand

Description

Games of chance

3.2

47.94

For platforms that include entertainment based on RNG (slot machines)

Skill games

31.96

For platforms that include entertainment based on users’ skills (roulette, poker, other card games)

Bookmakers’ store

3.2

For platforms accepting bids

The low cost of a lottery business permit is explained by the total monopolization of the sphere given into to the state-owned firms. Therefore, it’s rather complicated to enter the local market on a competitive level.

As for gambling and sports betting, companies also need to obtain an additional operator license. It is issued for 10 years and requires a fee of €3.2 thousand.

Process of Gambling Licensing in Estonia

Process of gambling licensing in Estonia

To become a licensed operator, any businessman must meet several conditions.

Applicant Requirements

  • Registration of a legal entity in Estonia. The company may be formed in the form of a limited liability partnership or a joint-stock company.
  • At least two accounts at a local bank. One for the current financial activities of the company, the second for customers’ deposits. All winnings are paid exclusively via bank transfer. The prize amount must be sent to the account from which funds were received for the initial deposit from the client.
  • A minimal budget of €1 million. When forming capital, you can’t use credit and budget money.
  • Formation of a reserve fund. Its amount is calculated based on the size of the authorized capital, but not less than €333.3 thousand (33%).
  • The unique design of a gambling website. The names of all games should indicate the manufacturer. Be sure to provide a section with contact information.
  • Independent examination of the reliability and security of the software. The Estonian regulator determines the list of international laboratories where you can test your software.

Documentation Portfolio

If the company meets all the requirements of the commission, you can safely proceed to the next stage – preparing and sending a package of documents. It should contain information about the registration, legitimacy, and financial condition of the applicant. Make sure you prepared all the necessary documents:

  1. Two written applications – for customs and tax services.
  2. A certificate of the company’s registration, a credential about authorized capital, and legal bank accounts.
  3. Information about the key positions of the company – founders, beneficiaries, shareholders, managers.
  4. Business plan for the next 2 years.
  5. Gaming platform examination results.
  6. Contracts with providers for the supply of gambling content.
  7. State toll receipt.
  8. Server location information.
  9. The contract of sale or rental of the hosting and domain name.
  10. A written guarantee prohibiting access to underage as well as people with signs of addiction.

The application review period usually lasts 14 working days.

Tax rules

Gambling licensing in Estonia is profitable due to weakened tax policy. There are certain obligatory payments, but they aren’t as large as in other EU countries:

  • Lottery operators pay 18% of the income received monthly.
  • Online casino operators pay 5% of the net profit. Unlike most offshore zones, this tax is calculated not only as “customer deposits minus their winnings.” The administrative activities of the company, such as advertising revenue and franchise agreements, are also taken into account. As for the expenditure side, this includes salary, purchase of gaming solutions, hosting fee.

Each operator of an online casino in Estonia is exempt from corporate, dividend, real estate (for those companies that own an office or any other premises) taxes and capital withholding.

Conclusion

Estonia is one of the most favourable countries for gambling. This particularly concerns the entrepreneurs who plan to work in the European legal field. The country offers low taxes and affordable licensing costs. The permission itself can be obtained in just 2 weeks since you just need to complete all the preparatory stages successfully.

2WinPower offers professional gambling licensing services in Estonia. Our company has already established dozens of platforms in the jurisdiction. We are well acquainted with all the intricacies of the local legislation.

You can also order a convenient turnkey online casino solution. You basically purchase a complete project from scratch: a license, a connected payment module, a diverse library of slots, etc. We offer individual development of the website design as well as the integration of profitable affiliate programs.

Contact the 2WinPower support team and learn more about profitable solutions for your business:

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