Gambling license in Estonia
Gambling companies are legally allowed to operate in Estonia. Due to the progressive legislation, the possibility to work on the European market, and low taxes, it is quite a popular and promising jurisdiction for operators. However, obtaining an Estonia Gaming license can be quite a time-consuming process. If you want to pass licensing with a guaranteed result in 4 months - contact the experts of Gofaizen & Sherle
Gambling regulation in Estonia is supervised by the Estonian Tax and Customs Board (EMTA). Estonia has a legislative framework that makes it a priority for gambling operators. There are two types of licenses in this country: an operating license and a service license. These licenses allow to provide Gambling services in Estonia and the EU.
The main law regulating this area is the Gambling Act of 2009. To obtain a Gaming license in Estonia, a gambling operator must meet several conditions, including registration of a legal entity, compliance with technical requirements, adherence to responsible gambling rules, and AML policies.
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Effective application and understanding of the legal framework will help companies to complete the licensing process and operate within the Estonian gambling legislation. Operators need to keep abreast of any changes in legislation to maintain compliance with all Estonian gambling rules and regulations.
Advantages of obtaining a gambling license in Estonia
Estonia offers gambling operators several advantages:
- Prestigious jurisdiction
Estonia Online Gambling License increases trust among players and confirms compliance with the high standards of the gambling industry. EMTA regulation and supervision guarantee transparency and responsibility of operators. - Stability and prospects
Estonia is a member of the European Union, which guarantees economic stability and high standards of regulation. Operators will be able to enter the big European market, increasing their customer base and cooperating with European banks. - Innovative technologies
Estonia has a well-developed infrastructure, the jurisdiction has a progressive view on digital solutions, and provides all companies with high-speed internet and innovative technologies to guarantee stable operation and safe gaming.
Process of obtaining a Gambling License in Estonia
The process of obtaining an Estonia Gaming license involves the following steps:
- You must be registered as a legal entity in Estonia or the EU.
- Confirm the authorized capital of the company for at least 1,000,000 euros (capital for organizing games of chance). Please note that the initial capital also depends on the types of games that your company organizes. If your games are based on the principles of betting - the authorized capital should be from 130.000 euros. Games of skill - from 25.000 euros.
- Confirm the absence of criminal records of key persons.
- Collect a package of documents:
- copies of the passports of the founders
- confirmation of the place of registration of key persons
- certificates of the absence of criminal records
- list of shareholders with their data
- copy of the company's charter
- information on gambling equipment
- elaborated security measures for players
- bank statements
- software information and gaming rules
- Non-resident companies must register with the Tax and Customs Board before applying.
- Pay the government fee.
- Correctly fill out the license application and submit it to EMTA. It must include the following information:
- Information about the applicant, including his name and registration code;
- Location address and contact details of the applicant;
- Indication of the type of gambling to be organized;
- Signature, name, and title of the person completing the application;
- Date of payment of the state fee.
- The regulator gives a preliminary answer within 3 days and may request additional documents. The period for obtaining a license is 4 months.
- If all the previous steps have been completed correctly, you will receive a license for Gambling in Estonia.
Types of gambling licenses in Estonia
To provide gambling services in Estonia, you need to obtain a gambling license. The jurisdiction offers 2 types of licenses:
Activity license
This type of license is intended for operators who provide their services as online casinos, lotteries, sports betting, bingo, etc. During licensing, companies need to specify the types of games they are going to place on the gaming platform.
The period for issuing the license is 4 months.
This license is issued for an indefinite period.
The cost of the state fee at the time of application is 47940 euros.
Please note, the Tax and Customs Department may at any time request an independent expert assessment of the compliance of the software used for online gambling.
An activity license entails several major categories of gaming, each with unique rules and taxation systems:
Games of chance
In this category, games rely on chance and are played on various gaming platforms such as gaming tables and machines. Examples of games of chance include various types of slot machines, roulette, keno, lotteries, bingo, and other similar gambling activities. In these games, the player places a bet and waits for a random outcome that may result in a win or loss.
Taxation for slot machine games is €300 +10% of winnings, while for gaming table games it is €1,278.23 per table, 5% for tournament participation fees.
Lotteries
Lotteries are one of the main types of gambling in which participants can buy lottery tickets or tickets with numbers, with the possibility of winning prizes. The results of lotteries are determined randomly, and winners are chosen at random from all tickets purchased.
This category includes both instant and classic lotteries. The size of the prize fund depends on the price of lottery tickets and is up to 80% of this price. Within one lottery it is possible to select winners no more than 3 times within 24 hours or after the lottery ticket field has been opened.
Taxation is 18% of the total ticket sales.
Totos
A popular game in this category is sports betting. The operator's or player's actions do not affect the outcome, the prize will depend on how accurately the player predicted the outcome. The winnings are defined as the bet before the game or the equivalent of the number of all bets.
Tax, less the prize, is 5% of betting revenue.
Games of skill
In this category, the prize depends on the skill and ability of the players. Examples of games of skill may include various types of sports betting, chess, board games, slot machines, sports that require precision and dexterity, and other games where success does not depend on chance.
The tax for slot machine games is €31.95 per machine.
Remote gambling
Remote gambling, also known as online gambling, provides a unique opportunity for players to participate in gambling via the Internet using a variety of electronic communication devices. This allows them to wager money on a variety of gambling games and get results virtually, without leaving their homes or visiting physical gambling halls or casinos. Online gambling includes a variety of formats such as online casinos, sports betting, poker rooms, lotteries, and roulette games, as well as interactive games with live dealers and more.
The tax for remote gaming is 5% of winnings.
Operating license
Issued to companies providing software, platforms, and infrastructure for gambling. The granted permit allows operators to provide services to other licensed participants or act as technology providers. The operating license plays a key role in the development and operation of the gambling industry in Estonia.
The term for issuing the license is 4 months.
The validity period is 5 years.
The cost of the state fee at the time of application is 3200 euros.
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Fees for obtaining a license
Obtaining a Gaming license in Estonia implies certain requirements to pay state fees to cover administrative costs. Each operator must contribute to the development of the gambling sector to help maintain a stable business ecosystem. To calculate the estimate of your project, pay attention to the following fees:
- The registration fee covers the regulator's administrative costs in reviewing the application and verifying the data. It depends on the type and volume of gambling activities and ranges from €3,200 to €48,000.
- The annual license fee is paid after the regulator approves the licensing. The amount of the license fee depends on the type of gambling activity. For example, for online casinos, it ranges from 47,940 to 190,000 euros per year.
- Licensed operators pay an annual supervision fee covering the ongoing regulatory control, monitoring, and operation of the licensing regulatory system. The amount of this fee depends on the nature of the gambling activity.
Taxation of gambling in Estonia
Every gambling company holding a Gaming license in Estonia must declare its profits and pay taxes. This is a mandatory requirement to operate in this jurisdiction.
The operator must submit a declaration to the Estonian Tax and Customs Board (EMTA) and pay the tax by the 15th day of each calendar month.
Operators must submit declarations that relate to the types of games they conduct. EMTA provides 9 types of declarations for different categories.
Tax rates
- 20% - corporate income.
- 300 euros from each slot machine slot machine on which games of chance are played
- 10% of the total number of bets on a slot machine with deduction of winnings
- 1,278.23 euros from each gaming table
- 5% of the total amount of bets of remote games
- 5% of the total amount of contributions when organizing tournaments
- 5% on the organization of sports betting with deduction of winnings
- 18% on lottery ticket sales
- €31.95 per machine for skill games
Rules and Regulations for Gaming in Estonia
The gambling sector in Estonia is regulated by the Estonian Tax and Customs Board (EMTA). Its mandate includes supervision of the gambling business to ensure transparency and honesty of operators, which can affect the image of the whole jurisdiction. EMTA reviews licensing applications, and issues and revokes Gaming licenses in case of violation of Estonian legislation. In addition, the department monitors the tax system and ensures a favorable environment for businesses to meet customs and tax obligations.
The main law that sets requirements for operators is the Gambling Act. The Government adopted it in 2009 and since then it has been amended to facilitate the development of the gambling sector in the country.
According to § 9, paragraph 1 of the Estonian Gambling Act, the right to provide services related to gambling is granted to legal entities that meet the requirements of the Estonian Gambling Act and have the relevant license.
This law also establishes requirements for operators, licensing procedures, technical requirements, player protection rules, taxation, and other aspects of the legal framework aimed at creating a fair and transparent gaming industry.
Also, the functioning of the gambling sector in Estonia falls under the following laws:
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