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Estonia Gaming License

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Estonia stands at the forefront of technological innovation, and its approach to gambling regulation is no exception. The country's forward-thinking legal framework combines innovation with a robust commitment to player protection.

To offer gambling in Estonia, a legal entity should be trustworthy and obtain both an activity license and an operating permit. State supervision is exercised by the Estonian Tax and Customs Board.

The Estonian licensing process is renowned for its efficiency. With a streamlined application procedure, you can swiftly obtain your gambling license (from 2 to 6 months), minimizing unnecessary delays and allowing you to focus on what matters most – the success of your online gambling venture.

An estonia online gambling license not only opens doors to the vibrant Estonian market but also enhances your global reputation, instilling confidence in players and partners alike.

Our experienced legal team specializes in crafting bespoke solutions tailored to your unique business needs. Whether you are a start-up or an established operator, we ensure that your Estonia Gambling License aligns seamlessly with your strategic objectives. Our team of experts provides comprehensive support at every stage of the licensing process, from initial consultation to ongoing compliance management.

Advantages of Estonia for gambling business

- Efficient Licensing Process

Estonian Gambling License is recognized as a strategic move for market expansion due to its streamlined and quick licensing process, facilitating a prompt entry into the industry.

- International Service Provisions

Holders of the Estonia online gambling license enjoy the advantage of offering gambling services in other jurisdictions, subject to certain limitations. This feature enhances the market reach of operators, fostering international business opportunities.

- Diverse Payment Options

Estonian licensed operators benefit from a range of payment options, providing flexibility to meet the preferences of users. Estonia embraces technological advancements in the gambling sector by allowing the use of cryptocurrencies. This forward-looking approach aligns with the evolving landscape of digital currencies, providing operators with contemporary financial avenues.

- Foreign Applicant Eligibility

Entities based outside Estonia, particularly within the European Union, can seamlessly apply for an Estonian gambling license. This inclusive approach to applicant eligibility broadens the scope for international businesses to thrive within the Estonian gambling landscape.

- Flexible Server Location

The requirement for server location is not confined to Estonia, providing operational flexibility for gambling and data protection purposes. To meet licensing criteria, the foreign territory must fulfill either of two conditions under the Gambling Act, ensuring a practical approach to server management.

- Estonia's Tax Advantages

Estonian legislation creates an environment where both players and online casinos thrive without the burden of excessive taxation. Players can revel in the spoils of their online casino victories tax-free. This unique feature implies that a legal entity with estonia casino license has the privilege of retaining 100% of its winnings without the encumbrance of tax obligations. Corporate income tax rates for online casinos are not merely reduced; they are strategically structured to foster financial prosperity.

Types of gambling licenses in Estonia

To offer gambling in Estonia, a legal entity should obtain both an activity license and an operating permit. Estonian legislation provides four distinct types of gambling activity licenses, each tethered to specific gaming domains. A single entity has the flexibility to hold multiple licenses, reflecting the diverse gaming portfolio they may wish to offer.

- Games of Chance

This license allows to provide chance-based games, where fate takes the reins, dictating the outcome through a delicate interplay of chance, unfold in the realm of either mechanical or electronic devices, or under the watchful orchestration of the game's organizer.

State fee for Estonia casino license amounts to EUR 47,940.00. The state fee is payable once.

A license is issued within 4 (four) months upon the submission of all required documents and information. However, the final decision shall not extend beyond 6 (six) months from the date of the initial application for the activity license.

- Games of Skills

This license allows to provide games of skills, where the outcome relies chiefly on the physical dexterity, abilities, or knowledge of the player.

State fee for an activity license allowing to organize games of skills amounts to EUR 3,200.00. The state fee is payable once.

A license is issued within 4 (four) months upon the submission of all required documents and information. However, the final decision shall not extend beyond 6 (six) months from the date of the initial application for the activity license.

- Totalizers and Betting

This license allows to provide totalizers and betting, where the outcome hinges on the occurrence or non-occurrence of an event, where player predictions are beyond the control of the gambling operator. Victory is contingent upon the accuracy of the bet, with the prize amount tethered to both the initial bet and the pre-established winning coefficient (for betting), or a percentage calculated from the total bets, the accuracy of other participants' bets, and the respective amounts wagered.

State fee for an activity license allowing to organize a toto (betting) amounts to EUR 31,960.00. The state fee is payable once.

A license is issued within 4 (four) months upon the submission of all required documents and information. However, the final decision shall not extend beyond 6 (six) months from the date of the initial application for the activity license.

- Lotteries

This license allows to provide lotteries, where the prize pool comprise a substantial 80 percent of the ticket circulation's selling price. The game's destiny is restrained, revealing itself no more than thrice within a 24-hour span or through the unveiling of the ticket field on the lottery ticket.

State fee for an activity license allowing to organize lotteries amounts to EUR 640.00. The state fee is payable once.

InteliumLaw services for Gambling License in Estonia

Our services related to the assistance with receiving Estonia gambling license usually include:

Legal and regulatory framework governing gambling in Estonia

The legal structure governing gambling activities in Estonia is encapsulated within the Gambling Act, which officially came into effect on January 1, 2009. The legal framework in place makes a clear distinction between remote gambling and land-based gambling. It's crucial to note that both these forms of gambling fall under the regulatory purview of the Gambling Act.

Main legal acts regulating the activity of a gambling operator:

The nuances of gambling taxation fall under the purview of the Gambling Tax Act. The regulations surrounding gambling advertisements are outlined in Article 292 of the Advertising Act. This comprehensive legal framework is pivotal in defining the landscape within which gambling operations navigate and adhere to regulatory standards in Estonia.

Taxation in the gambling business in Estonia

Gambling tax is paid by gambling operators. The following tax rates apply:

A company holding estonia online gambling license and operating permit shall submit a gambling tax return and pay gambling tax no later than the 15th day of the calendar month succeeding the taxable period.

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Estonia gambling license requirements

- Minimal Share Capital Requirements

For organising a game of chance (casino)
EUR 1,000,000
For organising a toto (betting)
EUR 130,000
For organising a game of skill
EUR 25,000

The infusion of share capital is permissible through cryptocurrency channels, provided that the payer undergoes proper identification protocols during the payment processing.

- Requirements to Operators

For the applying gambling operator, it is paramount to ensure that the organization of gambling is the sole activity of the legal entity. Shareholders holding a qualifying stake, beneficial owners, or members of a management body with a substantial shareholding in a gambling operator must have clean criminal record; not to be involved in unlicensed gambling activities; there should not any court decisions in bankruptcy proceedings indicating that they have contributed to the insolvency of a company due to a grave error in management.

- Requirements to Foreign Legal Entity Applying for Estonia Online Gambling License

A business entity originating outside Estonia, is eligible to serve as the applicant entity for an Estonian gambling license provided that one of the following conditions is met:

Estonian Gambling License Process

- Preparation stage

It is always advisable to start with analyzing the existing corporate structure, the profiles of Ultimate Beneficial Owners (UBOs), the platform/gaming system, the whereabouts of bank accounts, and other pertinent details. This serves as a proactive measure to unearth and address any potential challenges or issues well in advance.

At this stage, documents required for the obtaining of an activity license should be prepared: passport copies (notary certified and apostilled, if required), corporate decisions, required policies.

- Application for an Activity License

Before applying, relevant state fees should be paid. To obtain an activity license it is required to submit filled out application form and the following information:

The Tax and Customs Board informs about its preliminary response not later than on the 3rd working day following the application is filled. The Estonian Tax and Customs Board undertakes the responsibility of determining the approval or denial of an activity license within a timeframe of 4 (four) months upon the submission of all required documents and information. However, the final decision shall not extend beyond 6 (six) months from the date of the initial application for an activity license.

InteliumLaw is committed to a meticulous review of all documentation before submission. We assistance and clarity on any queries related to the paperwork.

- Application for an Operating Permit

Following the obtaining an activity license, the legal entity must apply for an operating permit. Before applying, relevant state fees should be paid.

To obtain an activity license it is required to submit filled out application form, to provide Terms & Conditions, Data Protection policy, RG policy, AML policy, information regarding the software together with independent expert assessment on the compliance of the software with the requirements of the Gambling Act (the exact list of documents depend on an applicant’s profile).

Distinct operating permits are granted for each specific type or sub-type of gambling. The issuance of permits for organizing remote games of chance under estonia casino license and toto operations is contingent upon gambling operators integrating their electronic recordkeeping and control systems with the Estonian Tax and Customs Board's information system. The authorization to host remote games of chance, classical lotteries, and toto activities is reserved for companies that have undergone rigorous testing. This ensures a secure and reliable connection to the list of individuals subject to restrictions on participating in games of chance.

Simplifying the application process, a singular application serves as the gateway to acquiring a remote gambling permit that spans multiple internet sites. The operational permit for remote games of chance, lotteries, and games of skill is issued for up to five years. The permit for toto operations is issued for up to 20 years.

The Estonian Tax and Customs Board undertakes the responsibility of determining the approval or denial of an operating permit within a timeframe of 2 (two) months upon the submission of all required documents and information. However, the final decision shall not extend beyond 4 (four) months from the date of the initial application for an operating permit.

Why Choose InteliumLaw

In choosing InteliumLaw as your legal partner, you are not just obtaining a service; you are gaining a strategic ally committed to the success and compliance of your gaming venture in Estonia.

- Expertise and Specialization

Our team of legal professionals possesses in-depth knowledge of the nuances in the licensing process, ensuring that your application is not only comprehensive but strategically tailored to meet the specific requirements of the Estonian legal framework.

- Tailored Solutions

Recognizing that each gaming company is unique, we don't offer one-size-fits-all solutions. InteliumLaw prides itself on delivering bespoke strategies that align with your business model, objectives, and the intricacies of the Estonian regulatory landscape. Our approach is personalized to ensure that the obtaining a gambling license is seamless and efficient process.

- Regulatory Insights

InteliumLaw goes beyond obtaining licenses; we provide ongoing support to keep you informed and compliant with any regulatory changes. Our proactive approach ensures that your operations remain compliant with the ever-shifting legal requirements.

- Transparent Communication

At InteliumLaw, we understand the importance of clear and transparent communication. We keep you informed at every stage of the process, providing updates on the status of your application, regulatory developments, and any additional requirements. Our commitment to open communication ensures that you have a clear understanding of the progress.

- Efficiency

Time is of the essence in the business world. InteliumLaw is dedicated to streamlining the licensing process, ensuring that your application is processed efficiently. We recognize the value of your time and strive to expedite the licensing procedure without compromising the thoroughness required for regulatory approval.

Additional Services

Except for assistance with Estonian gambling license, we could help you to obtain a license in other jurisdictions such as Curacao, Anjouan, Malta, and Isle of Man. While assisting our clients with licensing processes, we could also provide services on opening bank accounts, finding payment solutions, drafting policies, reviewing agreements, tax and corporate structuring, as well as provide a broad range of other business legal services.

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FAQ

How much does an Estonian gambling license cost?

In order to obtain an Estonian gambling license and required permits, the applying company is required to fulfill specific financial obligations. This includes the payment of a state fee for the license and a separate state fee for the permit. Additionally, compliance with minimal share capital requirement is mandatory.

  • State fee for an activity license (distinct activity licenses are imperative for the provision of each specific game type)

For organising a game of chance (casino)

EUR 47,940.00

Payable once (there is no annual renewal fee)

For organising a toto (betting)

EUR 31,960.00

For organising a game of skill

EUR 3,200.00

  • State fee for a permit (distinct operating permits are requisite, with separate applications mandated for each unique game type and gaming location)

For organising a game of chance (casino)

EUR 3,200.00

Payable every 5 years

 

For organising a toto (betting)

EYR 3,200.00

Payable every 20 years for betting

  • Minimal share capital requirements

For organising a game of chance (casino)

EUR 1,000,000

The infusion of share capital is permissible through cryptocurrency channels, provided that the payer undergoes proper identification protocols during the payment processing.

For organising a toto (betting)

EUR 130,000

For organising a game of skill

EUR 25,000

Who is eligible to apply for a gambling license in Estonia?

A public limited company or a private limited company, duly registered either in Estonia or within the European Union, is eligible to apply for an Estonian gambling license. The applying company should meet minimum share capital requirements.

 

For the applying gambling operator, it is paramount to ensure that the organization of gambling is the sole activity of the legal entity. Shareholders holding a qualifying stake, beneficial owners, or members of a management body with a substantial shareholding in a gambling operator must have clean criminal record; not to be involved in unlicensed gambling activities; there should not any court decisions in bankruptcy proceedings indicating that they have contributed to the insolvency of a company due to a grave error in management.

How long does it take to obtain a gambling license in Estonia?

Up to 10 (ten) months for obtaining estonia online gambling license and respective operating permit.

The Estonian Tax and Customs Board undertakes the responsibility of determining the approval or denial of an activity license within a timeframe of 4 (four) months upon the submission of all required documents and information. However, the final decision shall not extend beyond 6 (six) months from the date of the initial application for an activity license.

The Estonian Tax and Customs Board undertakes the responsibility of determining the approval or denial of an operating permit within a timeframe of 2 (two) months upon the submission of all required documents and information. However, the final decision shall not extend beyond 4 (four) months from the date of the initial application for an operating permit.

Can foreign companies apply for a gambling license in Estonia?

Yes. A business entity originating outside Estonia, preferably within the European Union, is eligible to serve as the applicant entity for an Estonian gambling license. It is noteworthy that the physical location of servers, from both a gambling operations and data protection standpoint, is not confined to Estonia. However, alignment with one of the two specified conditions under the Gambling Act is imperative:

  • the jurisdiction in question must be a party to the Convention on Cybercrime, or
  • the territory must have established cooperative ties with both the Estonian Tax and Customs Board and the Financial Intelligence Unit.

It is crucial to highlight that, as of now, Curaçao does not meet the specified conditions for eligibility under the Estonian Gambling Act.

How does InteliumLaw assist with meeting Anti-Money Laundering (AML) requirements?

InteliumLaw's assistance with meeting AML requirements for online gambling license purposes in Estonia is a holistic and proactive approach. Our goal is not just to facilitate the licensing process but to empower your company with the tools and knowledge needed to maintain a robust and sustainable AML framework.

  • Drafting/reviewing AML policy. InteliumLaw could assist with drafting AML aligned with applicable Estonian AML regulations or reviewing the existing AML policy.
  • Assisting with fulfilling specific AML obligations. InteliumLaw could assist with development risk assessment measures, KYC procedures and coordinate the setting of system for ongoing monitoring of business relationships.
  • Ongoing support. AML compliance is not a one-time endeavour. It requires continuous monitoring and adaptation to evolving regulatory landscapes. InteliumLaw provides ongoing support, keeping you informed about regulatory changes and ensuring that your AML policies and procedures remain up-to-date and effective.

What happens if my gambling license application is denied?

Just like any licensing process, there are instances where the application for an online gaming license may face denial. Some of the prevalent reasons include:

  • the presence of a criminal record or conviction among shareholders, board members, or directors. Such instances may raise concerns about the integrity and trustworthiness of key individuals associated with the gaming operation;
  • a documented history of a revoked gaming or gambling license, whether it occurred in Estonia or in another jurisdiction. Regulatory bodies are likely to scrutinize past licensing issues, and a revoked license may be interpreted as a red flag regarding compliance and adherence to regulatory standards;
  • Instances of bankruptcy, especially if attributed to mismanagement errors or violations of laws by shareholders or management.

If your Estonia gambling license application encounters a denial, InteliumLaw stands ready to guide you through the next steps. We conduct a comprehensive evaluation of the reasons behind the license denial. Based on the insights gleaned from the denial evaluation, our legal experts collaborate with you to strategically adjust and enhance your application. In cases where denial is based on grounds that can be challenged or clarified, InteliumLaw assists in exploring appeal and redress options.

At InteliumLaw, we specialize in not only guiding you through the licensing process but also in proactively addressing potential concerns that may lead to denial. Our tailored strategies aim to strengthen your application, ensuring that your online gaming venture is positioned for success within the regulatory framework.

Can InteliumLaw help with the renewal of an Estonian gambling license?

The validity of the activity license persists indefinitely without a specified duration. An operating permit for organising an online casino, lottery and game of skill is granted for up to five years. A permit for a toto is granted for up to 20 years.

In case the activity license and/or the operating permit are revoked, InteliumLaw could assist with conducting a comprehensive evaluation of the reasons behind the revocation. Our legal professionals provide tailored counsel, offering insights into potential courses of action.

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The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.