Baltic Times Q&A with an Estonian Gambling Expert Priit Kask

In just over a decade, Estonia has established itself as a fore-runner in the European gambling regulatory landscape. Since launching its online gambling market in 2010, the country has created an environment that attracts both local and international operators. With a 6% tax on Gross Gaming Revenue and over 35 licensed operators, Estonia stands out as a framework that has struck balance with taxation, profitability, enforcement and responsibility. 

In this Q&A with Priit Kask, the Editor-in-chief of Kiirkasiinod.co, we dive into the evolution of Estonia's gambling regulations, the appeal of its licensing framework, and how the country addresses responsible gaming. 

When did Estonia introduce regulations for online gambling? 

Estonia's online gambling framework came into effect in January 2010, following the enactment of the Gambling Act in 2009. Initially, only domestic operators could apply for licenses and from 2011, the market was opened to international operators. 

What makes Estonia’s gambling license attractive to operators? 

PK: Estonia's gambling license is actually highly respected. The framework strikes a good balance with taxation, profitability and responsible gaming. The tax system is competitive with operators paying from 2024 onwards a 6% Gross Gaming Revenue (GGR) tax for online gambling, among the lowest rates in Europe. 

How many gambling operators are licensed in Estonia, and what are the key requirements? 

PK: Currently, over 35 operators hold active licenses in Estonia, offering both online and land-based services with close to 200 brands being licensend and close to 100 being currently open.. To obtain a license, operators must first establish a local legal entity, demonstrate financial stability, and comply with technical standards. 

How about online lotteries - can anyone organize lotteries in Estonia? 

PK: No, lotteries are tightly controlled in Estonia. The state-owned Eesti Loto holds an exclusive right to operate national lotteries like Eurojackpot and Vikinglotto. Private organizations may run smaller-scale lotteries, but only with specific authorization, often for charitable purposes. This exclusivity helps prevent misuse and ensures that lottery revenues contribute to public welfare.

What steps has Estonia taken to promote responsible gambling? 

PK: Estonia is a leader in responsible gambling initiatives. Operators are required to offer self-exclusion tools, enforce advertising restrictions, and adhere to data protection standards. Additionally, the Estonian Tax and Customs Board (EMTA) actively monitors operators for compliance and blocking operators who do not have a license to operate. 

What trends are shaping Estonia’s gambling landscape and what does the future look like? 

PK: Several trends are reshaping the market. Firstly, the taxation was raised from 5% GGR to 6% GGR at the start of 2024. So there is a always a back and forth with taxation and profitability. Secondly, as in many other licenses, there is a constant discourse over advertising - how much and under which set of rules should it be allowed. Currently its quite lax, but this might change in the future. Thirdly, in the last year or so, the market has seen a number of new licensees enter the market, whereas even five years ago, the amount of brands was quite stable, but now there is a new brand opening every month or so, specifically Pay’nPlay casinos. Fourthly, Estonia is closely monitoring the regulatory developments in its neighbouring Finland. 

Thank you Priit Kask for this interview!