LICENSE IN ESTONIA
Estonia is a state that has successfully overcome the economic crisis in 2008 and has reached a new level of social and financial development. Licensing of online establishments began in 2010.
Anyway, 2010 is the year of the beginning of the gambling development in the country, and the emergence of a competitive gambling market. However, at the initial stage, licenses were issued exclusively to local companies. However, since 2011, the legislation has been amended, so that offshore operators were also able to acquire a local license.
Online casino licensing details in Estonia
If you want to open your own gambling establishment in Estonia, you will need to obtain two licenses:
● License to conduct gaming activities.
● License to open an online institution.
So, the first makes it possible to engage in operational gambling (various lotteries, slots, sweepstakes). It is issued once and does not require an extension. The second one is issued immediately for 5 years and for a certain online casino, where besides games there may be a bookmaker.
In Estonia, the gambling market is subject to only two legal acts:
● Gambling Act.
● Gambling tax law.
The supervisor in the country is The Estonian Tax and Customs Board.
If we analyze the last couple of years, then most of the licenses are received by young projects that have never been seen before. In general, this is understandable, because Estonia has a rather low tax on gambling.
Regarding local players, this is also in full order. After the crisis, incomes have grown significantly, so there are enough users for everyone.
Pricing policy, conditions and amount of taxes. What are the requirements for playgrounds?
If you want your application to be submitted to the Ministry of Finance of the country, you will need to pay a single fee of 3,000 euros.
An operational license will cost only 48 thousand euros, but if you are interested in a license to open your own online casino, then you will have to pay 32 thousand euros for it.
Gambling profit tax is 5%. True, it is so low exclusively for online casinos. If we talk about the tax on slots, then there is a special formula for it, which includes several variables: the brand of the machine and their total number. Lottery tax is 18%.
If you want to open a casino in a local jurisdiction, you will need to follow the requirements below:
● It would seem that the online casino works and provides services online, but the owner of the institution will need to register an office in the country.
● Mandatory proof of absence of a criminal record is required.
● At the time of verification of the company before issuing a license, its accounts must have a minimum of 128 thousand euros.
● The amount of capital of the joint-stock company must exceed 1 million euros.
● Strict compliance with applicable laws of the country.
● The software installed on the site must be licensed, and consistent with international standards.
● A company that owns an online casino cannot engage in any other activities in Estonia.
● Sale or transfer of rights to an Internet institution to third parties is prohibited.
● There should be a section on the online casino site that contains all the information on how to play slots, how to play correctly, how to get a win, and in what ways it can be cashed, a communication channel with the administration, etc.
● Users under the age of 21 are not allowed to register at the casino, however, users over 18 are allowed to play games without a random number generator.
Documents to be provided to the Tax and Customs Board for subsequent licensing of the gambling project
● full information about the owners of the institution (name, citizenship, registration, photocopies of passports);
● a copy of documents that confirm that these persons are company managers, as well as a title registration document;
● papers confirming the presence of an office in the country (payment of rent and utility services);
● bank account statements confirming that there are enough funds in the accounts (notarized);
● a list of all gambling games that are available on the site at the time of licensing; in addition, a detailed description and parameters of the machines are needed;
● documents confirming timely payments to users;
● modern protection and other security features for software;
● a detailed business plan, designed for a minimum of 2 years, which will indicate the approximate amount of profit;
● competent completion of license application forms, which will then go to the customs and tax services of the country.
Licensing and Customs Board Contact Information in Estonia
Address: Lossi 19, Viljandi 71020
Phone Number: +372 880 0811
Email: [email protected]
Why is Estonia so good in terms of opening a gambling business?
The country provides excellent conditions for new players who easily gain their place in the market. In addition, the casino receives its own EU number. That allows the owners of the institution to contact any European bank and even cooperate with European companies.
Low tax collection and high incomes of the population of the country make it possible to obtain stable profits.