The contribution of online casinos to charity and social projects in the Baltics

The Baltic states of Estonia, Latvia and Lithuania have experienced a lot of GDP growth in the past decade or so. Since the financial crisis, they have been quickly catching up with Western Europe, and with this rise in disposable income has led to a boom in online casino activity.

The likes of PayPal casinos UK show that onboarding has never been so easy, and it’s reflected in a higher number of new users trying out these platforms. This digital expansion of these online casinos has brought about economic activity in and of itself, but it’s also prompted discussions around the industry's societal role. Corporate Social Responsibility (CSR) is more valued than ever, particularly in gaining investors, and so this has captured the interest of the gambling sector. 

The regulatory landscape and CSR expectations in the Baltics

The Baltic nations take a relatively cautious approach when creating regulatory frameworks, as they look to balance the growth of the industry with heavy player protection and societal benefit. Compared to the UK, the Baltic countries are much less laid back about gambling more generally, as it has different connotations. But, as income grows, more space opens up for responsible gambling.

In Estonia, the Estonian Tax and Customs Board oversees a pretty strict market, with only licensed operators allowed to operate. Within this is a channeling of gambling tax revenues towards sports, education, research, cultural projects, social support and even healthcare. 

Latvia has also experienced fairly strong growth, and its market is regulated by the Lotteries and Gambling Supervisory Inspection. While direct CSR mandates might be less explicit, tax revenues are contributing to the national budget and funding various public services. 

Lithuania is quite heavy-handed with its measures against unlicensed operators and has recently increased both its gambling taxes and the gambling age, with an eye toward funding social programs and public education on gambling harm. Despite advertising bans, sponsorship deals are still allowed.

Direct charitable contributions and operator-led initiatives

Comprehensive data on direct, across-the-board charitable donations by online casino operators in the Baltics is tricky to quantify, instances of community engagement and operator-led CSR are certainly present. Some larger operators active in the region, such as the Olympic Entertainment Group (OlyBet), are open in their commitment to social responsibility. This can manifest through direct sponsorships of sports teams, such as OlyBet's sponsorship of Kaunas Žalgiris in Lithuania, or cultural events. 

For instance, Nese, a Lithuanian casino operator, launched its online brand Twinsbet with a big sponsorship deal that includes backing the Wolves Basketball Club and the Twinsbet Arena in Vilnius. This was explicitly stated to support local teams and sporting activities. Of course, they’re still benefiting from brand awareness, and this can be controversial in itself, but the truth is that it does mean more money coming into the hands of grassroots sports.

Gambling tax revenue fueling social good

An important contribution of the online casino industry is in its gambling tax revenue. In Estonia, a big portion of gambling tax is earmarked for specific societal benefits: 47.8% to the Cultural Endowment, 15.3% for social projects (and this includes support for those with gambling problems), 10.1% to the Ministry of Education and Research for relevant projects, and 14.1% to the Ministry of Culture for sports and cultural projects. 

Latvia saw its budget receive around €80 million per year from gambling taxation, which again recycles into the broader economy. In Lithuania, licensed operators have seen tax hikes from 20% to 22%, which is expected to generate an extra €4.4 million a year for the state budget.

Responsible gambling initiatives as a form of social contribution

Beyond just the financial contributions (after all, these tax contributions would likely have arisen elsewhere if not for gambling), a big part of the casino industry's social responsibility lies in educating the public on responsible gambling. Baltic regulators and operators collaborate closely here, working on initiatives to prevent problem gambling. Estonia has responsible gambling measures like self-exclusion options (HAMPI register) and age verification, which operators adhere to such a public register. Latvia also has a self-exclusion register and requires operators to provide information on gambling risks. 

Lithuania has a National Self-Exclusion Register and is actually advancing stricter controls like deposit limits, and operators are required to implement these. This is to ensure the tax money generated by casinos doesn’t come at a negative social cost.

A symbiotic relationship?

Online casinos in the Baltics aren’t quite as welcomed or socially accepted as in other nations in Europe, but they’re doing their bit to contribute to charitable and social projects through a combination of direct initiatives, like sponsorships, as well as substantial tax revenues. As for charitable donations, these aren’t quite so easy to pin down, but the general feeling is that the tax revenue raised is a net positive for society, so long as it was generated through responsible gambling.