The Current Status Of iGaming Acceptance In Estonia

Estonia has embraced iGaming more than any other European nation, creating a welcoming space for gamblers and operators. This has resulted in a thriving industry, which has year-on-year growth and is significantly contributing to the country’s economy. 

Not only are traditional casinos legal in the country, but gaming enthusiasts can also access local and foreign online casinos, sportsbooks, and lotteries. Punters especially enjoy the variety of offshore casinos, which provide access to a diverse range of casino games to Estonian players. What’s more, the fastest paying casinos are increasingly popular as they allow players to use crypto and other quick payment methods to enjoy near-instant access to any winnings they make while playing. In short, gamers are spoilt for choice when it comes to gambling online.

Brief History of Gambling in Estonia

Before diving into the acceptance of iGaming, it is important to first establish the development of gambling in the country. 

Gambling has always been a part of Estonia’s culture, as card games and Pokeriralli were popular pastimes. Gambling is regulated by the Gambling Act (1995) and the first casino opened shortly after the Act was signed. The Act was amended in 2001 and again in 2009 to allow for online gambling, requiring all online platforms to be officially licensed to operate legally. 

The largest casino in the country - Olympic Casino Tallinn - opened in 2012, and by 2014 there were several measures implemented to ensure responsible gambling, both online and at physical casinos. 

Estonia’s iGaming Industry

The iGaming industry is thriving, seeing year-on-year growth. According to Statista, online gambling revenue reached USD 190.62m in 2023 and is projected to reach USD 208.2m by the end of 2024, with an annual growth rate of 4.62%.

The online lottery was the largest contributor to this industry, followed by online casinos. It is therefore clear that residents are accepting of the sector, with 145,200 users expected by 2028.

A main driver of this growth is the increase in mobile platforms. These platforms can be accessed from smartphones or tablets, and allow players to gamble and play on the go. Online platforms can be accessed either via mobile-friendly websites or apps specifically designed by the casino operators. 

The industry is set to grow even more as digital advancements arise in a country with a strong regulatory landscape. 

Regulating iGaming in Estonia

iGaming is regulated by both The Gambling Act and the Gambling Tax Act (2019).

The Gambling Act defines different types of gambling, how these are controlled, and how violations will be treated. 

The Gambling Tax Act, overseen by the Estonian Tax and Customs Board, stipulates the tax rates and distribution of tax revenue arising from gambling activities. Estonia is tax-friendly, placing a 6% tax on the income of online casino operators. This is significantly less than in other European nations where tax rates can reach 25%. 

It is clear that iGaming operators are very welcome in the country, as long as they are licensed and legally operating. The tax from their income is used to improve conditions for the country’s residents, being used for health, education and various development programmes.