Estonia

Gaming License

How to Start a Gambling Company in Estonia

To get licensed in Estonia, a gambling operator needs to set up a legal entity, which is usually a Private Limited Company or a Public Limited Company, within the country or in the European Union. This is very important to your company’s only business activity is gambling because the Estonian law does not allow you to mix it with other types of trade. 

The incorporation process includes a few non-negotiable steps:

Step 1. Get E-Residency

Unlike many other jurisdictions, the first step for most foreigners is applying for an Estonian E-Residency digital ID. This requires filling out an online form, paying a fee of around €120–€150, and waiting about 3–8 weeks for approval.

Once it’s ready, the applicant needs to pick up their digital ID card at an Estonian embassy. This card allows them to sign documents and register a company.

Step 2. Choose a Name and a Contact Person

Every Estonian company must have a unique name that is not already in the Business Register. Also, because you do not live in Estonia, the law requires you to have a Contact Person and a Registered Office Address within the country. 

Step 3. Pay a Share Capital

This step is crucial for a gambling company. While an average company can start with only €0.01, a gambling company needs a much higher amount. For an online casino, you must show a share capital, which depends on the gambling activity type you offer:

• ​​€1,000,000 for games of chance;

• €130,000 for sports betting (toto);

• €25,000 for games of skill. 

Along with the capital, you must pay the mandatory state fees for both the activity license and the operating permit. Detailed figures are provided in the Fees & Taxes section below.

The legislation requires operators to transfer this money to the company bank account or a payment institution account in the European Economic Area (EEA) and then confirm it in the Business Register.

After the company is registered, you need a bank account to manage your company money. MGL can help you open an account in a traditional Estonian bank or in electronic money institutions (EMIs) that specialize in high-risk businesses to make the process faster. 

Types of Licenses for Gambling in Estonia

To legally operate in Estonia, every operator must undergo a two-tier licensing process. This is not enough to have just one document; you must obtain both:

• Activity License: This is a “fit and proper” check of your company, shareholders, and capital. An activity license is granted for an indefinite period and confirms your right to engage in the local gambling business.

• Operating Permit: This is a specific permit for your platform. A permit validates your game rules, RNG certificates, and technical setup. For online gambling, it is typically valid for 5 years (up to 20 years for sports betting).

Unlike many other countries, Estonia does not have a separate B2B license for game providers and suppliers. 

Under the Estonian Gambling Act, you must apply for a license and permit based on the specific type of games you offer:

• Games of Chance: Includes poker tournaments, online slots, and table games.

• Toto (Sports betting): Covers all sports and event wagering.

• Games of Skill: Includes games where the outcome depends primarily on the user’s physical and mental skills.

Each type of game requires a separate activity license. But you do not need to obtain the license if you run games of skill, where the only possible prize is getting the opportunity to take part in the same game again. 

Regardless of the license type, the regulator, the EMTA (Estonian Tax and Customs Board), will evaluate applications in a two-step procedure. The first step involves provisional answers are commonly provided regarding an application in about three working days. The second step is about reviewing, which typically takes an average of four to six months. 

Overview of the Estonian Gambling License

The Estonian gambling license, governed by the Gambling Act of 2009, is managed by the Estonian Tax and Customs Board, or the EMTA. Since its introduction in 1995, the framework has undergone major updates to align with industry needs.

The Estonian gambling license covers several types of online gambling operations, including games of chance, toto, and games of skill mentioned above, as well as lotteries. However, operators are not required to obtain a license to organize a lottery. 

This is enough to have only an operating permit. But only a public limited company with share capital amounting to at least €1 million wholly held by the Estonian state may apply for a lottery operating permit. By the way, the lottery must have a prize pool of over €1,000.

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One of the key draws for operators is Estonia’s 5.5% Gross Gaming Revenue (GGR) tax, which applies to both local and international iGaming businesses. However, according to recent updates, the local authorities plan to decrease the tax rate by 0.5% annually until it reaches 4% in 2029. 

This is one more thing you need to consider when planning to obtain an Estonian license because the update reverses its earlier plans to raise the rate to 7% in 2026. 

Speaking of the regulator, the EMTA ensures compliance across these activities, helping to maintain high standards in the industry. The EMTA is the main authority regulating gambling in Estonia. Its responsibilities include:

• Reviewing license applications and conducting regular inspections.

• Enforcing rules for electronic gambling reporting systems (EHMA).

• Overseeing the self-exclusion system (HAMPI) to safeguard players.

• Monitoring AML measures and handling reports of suspicious transactions.

The efficiency of the EMTA functionality is proven by the statistics. Estonia’s online gambling market generated over €425 million in 2025 with a confident annual growth of 2.94%. Meanwhile, the Estonian iGaming market has over 30 licensed operators in total, running both online and land-based activities. 

Renewing Estonian Gambling License

To avoid any interruptions, renewal applications must be submitted at least three months before the license expires. The validity period of licenses depends on the license type:

• An activity license has an indefinite period of validity.

• An operating permit lasts for five years. 

Holding an activity license basically means that you do not need to renew it. All you need to do is to maintain your compliance with the regulatory requirements to not lose a license. 

The maintenance process involves submitting updated documents and demonstrating compliance with regulatory requirements. The Estonian Tax and Customs Board (EMTA) evaluates key areas during the process:

The EMTA pays close attention to AML (Anti-Money Laundering) and KYC (Know Your Customer) protocols during the renewal process. Standard operational requirements, such as maintaining a registered office and integrating technical systems, must also remain in place.

Speaking of operating permits, the renewal process typically takes 3-6 months, depending on factors such as the completeness of the application, the applicant’s response time, EMTA’s workload, and the complexity of the business. Keeping thorough records and conducting regular compliance checks can help ensure a smoother renewal.

This detailed approach underscores Estonia’s reputation as a well-regulated gambling jurisdiction, prioritizing compliance and operational standards. Understanding the broader framework of Estonia’s gambling regulations is crucial for maintaining long-term adherence.

Gambling Regulations in Estonia

Unlike many other jurisdictions, Estonia allows different age limits for different gambling categories. For instance, people aged 21 and older can gamble at online and land-based casinos, those over 18 can bet on sports and take a chance in lotteries. That is why strict ID checks at entry and sign-up are mandatory within the country. 

Besides the implementation of strict KYC procedures, applicants are required to:

• Be registered as a legal entity in Estonia or the European Union;

• Have a minimum share capital of €1,000,000 for games of chance, €130,000 for sports betting, which is called “totalizator” in Estonia, and €25,000 for skill games.

• Pay a state fee;

• Have clean criminal records for all key company personnels;

• Provide a detailed 3-year business plan, AML, KYC, and Responsible Gaming policies, location of gaming software, and server.

• Be technically integrated with the EMTA’s electronic reporting system;

• Undergo ongoing compliance audits. 

In addition to the above mentioned requirements, all gambling operators licensed in Estonia must immediately inform the EMTA of all changes in the information submitted for obtaining the license. This includes information about a new platform or new games, changes to game rules, and any replacement of key members. 

Meanwhile, the regulators plan to improve the current legislation by examining in-play betting mechanics, expanding the HAMPI self-exclusion program to include court-mandated exclusions from third parties, and making the licensing process faster and ready for full digital approval. 

The Estonian iGaming market is one of the most promising ones in Europe with approximately 30% of adults participating in online gambling. But it is not that easy to get licensed there. The regulator has tighter scrutiny over AML compliance and regulatory reporting, so licensed operators must do it in Estonian. Some foreign operators face challenges opening local bank accounts.

That is why it is tougher to get licensed in Estonia on your own. You need online gambling experts who have consulted over 700 operators all over the world and surely know what is behind the Estonian regulatory system.

Fees & Taxes of the Estonian Gambling License

The Estonian gambling license is one of the most affordable in the EU, especially if you offer sports betting and games of skill. 

Initial Licensing Fees (One-Time Payment)

As mentioned above, license fees vary depending on the exact type of online gambling activity:

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• ​​€1,000,000 for games of chance;

• €130,000 for toto;

• €25,000 for games of skill. 

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Plus, all applicants have to pay a state fee, which varies by activity type. For a games of chance platform, an operator pays €47,940, for sports betting, the fee is €31,960, and for games of skills, it is €3,200. The state fee for an operating permit for a lottery is €640, while it is €3,200 for all other activities.

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Since each type of license has an indefinite period of validity, there are no renewal costs involved. 

Taxes

Like the licensing and state fees, the taxation regime is also dependent on the gambling activity. Remote gambling and online games are charged 5.5% on gross revenues, which will gradually decrease to 4% in 2029, while lotteries are charged 22% on ticket sales. 

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Operators running different skill games and slots are charged fixed fees per machine and table. For instance, if they offer slots, they pay €300 per slot monthly plus 10% of the net stakes made on these machines, and if they offer table games, they pay €1,406 per table per month.

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In addition to gross revenue tax, operators are required to pay a corporate income tax (CIT). Unlike most EU countries, there is no annual tax on retained earnings. A CIT rate of 22% applies exclusively to the gross amount of profit distributions. That means you pay 22% CIT when you decide to distribute dividends to shareholders.

Comparison with Other Licenses

Compare the Estonian gambling license with other major jurisdictions in terms of cost, processing time, and regulatory requirements.