Gambling Licence in Estonia

Companies providing gambling services in Estonia must obtain a corresponding license issued by the Tax and Customs Department of Estonia. Also, separate activity licences are issued to organise games of chance, pari-mutuel betting, and skill games. In that way, there are several types of permits for gambling businesses, depending on the type of business.

The activity licence is issued digitally and is valid without a specific term.

Be aware that you do not need the activity licence if you wish to form:

  • games of skill, the only possible prize of which is the opportunity to participate in the same game again;
  • lotteries, the value of the prize pool of which is up to 1,000 euros;
  • commercial lotteries.

Capital

The initial capital for organising games of chance is a minimum of 1 000 000 EUR.

The share capital when organising pari-mutuel betting amounts to at least 130 000 EUR.

In the case of games of skills, the capital is 25 000 EUR.

Please also be aware that a company need to be registered as a public limited company or private limited company to apply for any licenses mentioned above.

Time frame

The decision usually takes between 4-6 months from documents submission. After the license is obtained, the applicant must send the necessary documents to register the gambling permit. The Department will take 2-4 months to make the decision.

Requirements

According to the government regulations, the shareholders of a gambling business must not include a person who:

  • has a criminal record;
  • has organised gambling without an activity licence or operating permit, or has managed a company whose activity licence has been revoked due to a violation of the law;
  • has caused the insolvency of a company due to a grave error in management.

Before deciding on giving an activity licence, authorities check whether the applicant for the activity licence meets the requirements established for gambling operators. The authorities also check the tax behaviour of the last three years. If applicable, the additional characteristics of the applicant for the activity licence are collected to verify the documents submitted upon application for the activity license.

According to the Estonian authorities, the following documents should be presented along with the application form:

  • information and documents regarding the members of the management board and supervisory board of the applicant for an activity licence, including, for each person, the forename and surname, personal identification code or date of birth in the absence thereof, place of residence, a complete list of places of employment and positions, and documents that prove the trustworthiness of the members of the management board and supervisory board of the applicant for the activity licence and their conformity to the requirements of the Gambling Act, which the applicant considers essential to submit, and the information and documents specified in clause 11 (3) 2) of the Gambling Act;
  • information about the auditor of the applicant for the activity licence, including the auditor’s name, place of residence or seat, personal identification code or date of birth in the absence thereof, or registry code;
  • a list of the shareholders of the applicant for the activity licence, including, for each shareholder, the name, registry code or personal identification code, or date of birth in the absence of a personal identification code, and information about the number of shares or size of the holding and the number of votes to be acquired or already held by each shareholder;
  • the information and documents specified in subsection 11 (2) of the Gambling Act regarding persons who have a qualifying holding in the applicant for the activity licence.

The application process also involves paying a state fee:

  • 47 940 EUR for the organisation of games of chance;
  • 3 200 EUR for the organisation of games of skill;
  • 31 960 EUR for the organisation of pari-mutuel betting.

Cross-border activity

The European Union does not have set the requirements for organising gambling. It means that an activity licence acquired from another state within the European Economic Area does not grant the right to offer gambling in Estonia, which also valid vice versa. More information.

Company in Estonia OÜ supports gambling businesses formation in Estonia. Please contact us and request a consultation from us today.

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