Estonia may be a small country geographically – and its population is less than 1.5 million. However, physical dimensions are no hindrance, as Malta’s case example clearly shows – and Estonia, an EU member state since 2004, is fast becoming a respected and top jurisdiction for various types of online activities. In fact, Estonia has embraced blockchain and the cryptocurrency industry, has introduced e-residency services, and its gambling jurisdiction and licence are climbing ranks.
Online casinos have been legal for foreign operators in Estonia since 2011 – and since 2012, servers can also be located outside Estonia’s borders, which opens up further opportunities for operators. For many online gaming operators, the country is becoming an attractive jurisdiction, and for various reasons. Primary among the reasons is the fact that Estonia is an EU member state, and this gives operators access to the attractive EU market. Another consideration is that the cost for a licence – which is valid for 10 years – is relatively low, when compared to that in other jurisdictions, and is even accessible for small and medium-sized operators. Additionally, the tax rates in Estonia are also on the low side, with a corporate tax rate of 20 per cent and a gambling tax for winnings at five per cent.
Online gaming operators interested in acquiring an Estonian licence, which is regulated by the Estonian Tax and Customs Board, must obtain two different licences: an activity licence and an online gaming licence. In order to offer gambling services in Estonia, operators must obtain both activity licence and operating permit.
For international operators, the requirements include that they must be based within the European Economic Area and adhere to the relative regulations. Both applications require submitting comprehensive documentation and showing evidence of financial stability.
From a technical perspective, applicants must deploy advanced cybersecurity measures to safeguard personal and financial data. Also, the gaming software used by operators must be rigorously tested and certified by accredited laboratories, especially to ensure fairness and randomness. Moreover, for added player protection, operators must provide tools such as access to gambling addiction support services, and self-exclusion options
To ensure compliance the Estonian Tax and Customs Board conducts periodic inspections, to check whether operators are adhering to the set licensing conditions. Advertising and marketing are also regulated – and operators must uphold strict guidelines, including making sure that all promotional content is clear and not targeted towards minors and vulnerable groups.
Unlicensed operators are prohibited from offering their services to Estonian residents – and the Estonian Tax and Customs Board also maintains a blacklist of such operators, with the aim of safeguarding players from illegal and exploitative activities and other associated risks.
The combination of relatively low entry fees, a competitive market, a streamlined application process, and strong regulation make the Estonian licence an attractive one, especially for operators planning entry into the EU market and for those seeking a strategic move for market expansion.
Another option for such operators is a Malta licence. An MGA licence is reputable and trustworthy, with a regime that is informed by years of knowledge and experience.
Malta was one of the first countries in the world to regulate online gambling – and by getting there first, the EU member state was able to secure its position at the forefront of the gaming industry. And years later, through innovation, flexibility and strict regulations, it has kept its prime position in the industry. Moreover, it consistently sets the standard that other legislations seek to follow.
Getting an MGA licence is not easy – and Malta’s gaming regulations are strict and structured. New casinos applying for a Malta licence should expect a thorough application process that puts their financial health, technology use and player protection under the lens. For instance, gaming software is tested to ensure that each game is completely random and that outcomes cannot be influenced. Financial security is also a major aspect – and operators are checked for their financial well-being, while ensuring, for instance, that operating funds are kept separate from consumer funds.
There are other benefits that come with an MGA licence. As an EU member state, Malta offers a stable and secure business environment, with gaming regulations that are recognised across the EU. Moreover, Malta prides itself in having a diverse and skilled workforce, which ensures that casinos stay at the top of their game. Moreover, the country has an unbeatable lifestyle – with a calm Mediterranean climate and a high standard of living. This attractive lifestyle attracts a lot of top talent from around the world – which means that online casinos in Malta are in a good position to attract and retain the kind of top talent they need to run their operations effectively and efficiently.
For operators, Malta offers favourable tax rates, which helps businesses save money and invest this in better games, better technology and top talent.
In summary, Malta provides a supportive infrastructure and environment for online casinos – and these benefits translates into elements that attract players to casinos: top and varied games, various payment options, responsible and fair gaming, accessible and efficient customer support, and the knowledge that players can spend their time safely in the knowledge that their funds and identity are not at risk from malicious operators.
Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.gamcare.org.uk/