The enticing features and promising potential for operators in Estonia’s iGaming business have drawn a lot of attention. Could this make it a model or benchmark for other markets in the region? Well, it certainly seems so.
A major appeal is the very low tax rate that Estonia imposes on total gambling earnings. The government will have a tax on internet gambling of just 5% by the middle of 2023, making it a very alluring market for businesses that provide online gaming services. Despite potential future tax rises, Estonia’s attractive environment and stable regulations make it an attractive option.
Estonia’s market statistics are also eye-catching. Over two-thirds of Estonians have placed a wager with real money at least once, and over half of those who legally can do so have done so within the last two years. The number of people gambling over the Internet is growing, and experts believe that this will eventually eclipse the number of people gambling in traditional brick-and-mortar casinos. This forecast is because more online gambling companies are entering the market and that technology is advancing.
Most Estonians that participate in the gambling industry do so on football matches, followed by basketball, horse racing, ice hockey, volleyball, tennis, rugby, and eSports. Slot machines, roulette, blackjack, poker, and baccarat are the table games that are most popular among Estonian gamblers. There has also been a huge uptick in the popularity of live dealer casino games, which combine the ease of internet gambling with the excitement of playing in front of real human dealers.
All forms of gambling in Estonia are regulated by statutes such as the Lottery Act of 1994, the Gaming Act of 1995, and the Gambling Act of 2009. Regulations for internet gambling, such as the need for a gaming license, were established by the Gambling Act of 2009. Over time, Estonia has modified its policies to appeal to operators. One of these modifications was to lift the ban on hosting data centers in other, similarly licensed, countries.
Outdoor sponsorships, advertisements on foreign ships/planes/airports, and official operator websites are all within the bounds of Estonian law, as are in-person promotions at licensed gambling establishments and communications through email, phone, or mail with a clear unsubscribe option. The laws guarantee that players are treated fairly and that appropriate behavior is followed while gaming.
As a result of its thriving iGaming industry, Estonia is sometimes held up as an example for the rest of the European Union. Because of its consistent legal framework and emphasis on responsible gambling, it is a popular vacation spot. The sky is the limit for its thriving gaming economy.