Estonian Online Gambling License Reforms (2024–2025): Key Updates and Industry Impact

Recent amendments and proposals in Estonian Online Gambling License regulation have significantly reshaped the gambling landscape. Remote gaming taxes were raised (from 5% to 6% of net bets as of Jan 2024, with a law-planned rise to 7% by 2026), but the new government has pledged to roll this back by 0.5% per year to just 4% by 2028. Simultaneously, strict advertising rules were adopted in 2024: celebrity endorsements, “risk-free” bets and youth-targeted campaigns are banned. No major changes to licensing law have yet been enacted, though officials promise to streamline the two-step application process (licensing + operating permit) via digital tools and e‑residency. Regulatory agencies have also stepped up oversight – for example, the tax authority and FIU are enforcing tighter AML checks (operators were fined in early 2024 for non‑compliance) - and Estonia is expanding player-protection systems (e.g. broadening the HAMPI self-exclusion register).

Licensing Requirements: The core two-step system remains (activity licence + operating permit issued by the Estonian Tax and Customs Board). No new licence categories have been introduced, but fees remain high (e.g. €47,940 for a casino licence; €31,960 for sports betting). Activity licences have indefinite duration, while online operating permits are issued for up to 5 years. Applicants still must meet the usual criteria (EEA-based entity or Estonian e‑resident, clean record for owners/executives, mandatory corporate capital, etc.). In practice, Estonia’s digital infrastructure means even non‑residents can apply easily – e‑residency and online signatures allow foreign operators to be licensed and serve Estonian (or wider EU) players without a physical presence. The government has signalled it will further simplify the process (e.g. faster e‑applications) to attract new entrants. 

Taxation & Financial Obligations: Key financial duties have changed. The remote gambling tax (gross gaming revenue tax) for online casinos, sports betting and other games of chance increased to 6% in 2024 (from 5%) and was slated to hit 7% in 2026 (Lottery ticket sales tax was likewise raised from 18% to 22%). However, the new coalition government quickly reversed course: it plans to reduce the rate by 0.5 percentage points each year, reaching a 4% tax by 2028. The strategy is to grow the operator base so that a lower rate still yields more revenue. In addition, new funds are being created: a special sports infrastructure fund and a matched private sponsorship fund (20% of new gambling-tax revenue) will earmark gambling levies for cultural and sports projects. Apart from taxes, operators must pay the standard licence fees above (as per the State Duty Act) and submit monthly tax returns (gambleriskummadeklaratsioon) by the 15th of each month. Notably, Estonia does not tax player winnings.

Advertising & Responsible Gambling: Estonia has imposed stringent ad rules to protect consumers. Since 2024, gambling ads must carry warnings and cannot use emotionally manipulative content (no celebrity spokespeople, “your winnings” or “free bet” promises, or marketing aimed at minors). In 2023, the Consumer Protection Authority (TTJA) audited 19 licenced operators’ campaigns and found over 150 breaches of these rules, prompting immediate corrective actions. Going forward, legislation is expected to clarify and slightly expand ad restrictions – for example, banning misleading “get rich quick” claims - but lawmakers have explicitly kept advertising a “grey area” where sponsorship (without explicit play incentives) remains permissible. On the player-protection side, existing responsible gaming measures continue: operators must enforce age checks (21+ for casino games, 18+ for sports betting), honor the national HAMPI self-exclusion register, and offer weekly/monthly loss limits and session timers on all online games. Notably, regulators are expanding HAMPI’s scope – discussions are underway to allow family members or courts to add problem gamblers to the list, which could make self-exclusion stronger in 2026 onward.

AML and Compliance: Money-laundering controls have been stepped up.

Gambling operators are “obligated persons” under the AML law, subject to full KYC and transaction monitoring. In early 2024 the FIU required detailed reports from all operators and fined those who failed to respond on time (name-and-shame notices were even published). The FIU has since announced an “enhanced AML supervision” campaign through 2024–25. Meanwhile the unified Tax and Customs Board (formed in 2024) coordinates these checks. Operators must implement robust due diligence on bets of €2,000+ (or equivalent) and maintain closed-loop payment systems. In practice, this means gambling firms in Estonia should expect deeper audits and tighter controls in line with EU standards.

Implications for Operators: For domestic licensees, the outlook is mixed. The higher 2024 tax and strict advertising laws increase compliance burdens and may squeeze margins on the home market. However, the rollback of the tax rate and the emphasis on industry growth are positives. Firms should prepare by strengthening compliance (AML, ad-review processes, responsible-gaming features) and aligning marketing to the new rules. The earmarked sports/culture funding schemes could also create partnership opportunities (e.g. operators sponsoring approved projects).

For international entrants, Estonia’s reforms signal an inviting climate. The e-residency program and a liberal licensing framework mean foreign companies can easily obtain an Estonian licence and even target players EU-wide. Estonia’s push to become a Northern-European iGaming hub – with the lowest online gambling tax in the EU (projected 4%) and no tax on player winnings – is drawing attention (industry observers have dubbed Estonia “the Malta of Northern Europe”). In our view, these changes reinforce Estonia’s competitive edge: operators who maintain high technical and ethical standards (secure RNG, strong AML/KYC, player protection) stand to benefit from a more dynamic, well-regulated market. Conversely, those relying on aggressive marketing or lax compliance will find the bar even higher.