Online gambling in Estonia can be permitted only once the operators acquired a license to operate...
Online gambling in Estonia is considered underdeveloped however, it has a great potential to succeed in the industry sooner or later. Thus, Estonia can be a prospective venue for those who are on the look-out for lucrative business ventures.
The Gambling Market Development
Estonia has a population of 1.5 million people. With such a small population, more than 150 gambling rooms and casino halls are operating in the said country. Out of the 1.5 million populations some are adults and 80% of them are said to enter the gambling room and engage into gambling activities at least once. Simultaneously, gambling in the online setting came into development only when it became legal in the year 2010.
As a way for the Estonian government to rise up from its economic turmoil, they permitted Estonian gamblers to participate in online gambling activities only on legitimate websites. In the case of online websites operating without a license, these shall automatically be blocked.
This policy does not adhere to the legislation of the European Community however, the Estonian government claimed that such policy is just temporary until they can totally work-out the legitimacy of the online gaming in the country.
There are two documents responsible in the regulation of gambling in Estonia. These are: Lotteries Act of 1994 and Gambling Act of 1995. Although these two documents are important acts in the regulation of gaming activities, both were not able to succeed in implementing legitimacy in the remote gambling setting.
When online gambling started flourish, to the introduction of a new gambling act came into the scene however, it only worked as a proposal to the permitting body. Eventually, the new act has been adopted in the fall of 2008. Apart from this, a new legislation act was also introduced. This is the Gambling Tax Act that focuses on the acquiring tax from companies allowing gambling activities.
Operating and activity gambling licenses
Online gambling in Estonia can be permitted only of the operators are able to acquire a license to operate. Both EU and non-EU companies and residents are covered with this regulation.
Specifically, operators must be able to acquire two kinds of licenses: operating license and activity license.
What is an Activity License?
Basically, the activity license is a certification that allows an applicant to operate an online gambling business in Estonia as long as he or she efficiently adheres to the requirements of the Gambling Act in the country. Should there be any changes or conditions required to be followed, the applicant must accurately comply with these. It is important to note that the activity license is non-transferrable and is granted only for an unspecified term.
The operating license is also termed as an operating permit. This can only be issued if the applicant is able to determine a specific type of gambling activity. Examples to this are: games of chance on tables and machines, lotteries and totalizators.
Applicants must submit their licenses application to The Tax Customs Board of Estonia which is responsible of accepting application for licenses.
The two licenses need to be paid individually. Fees can be determined through the Tax Customs Board.