License in Estonia
It’s a well known fact that the gambling business is prohibited in many countries. Estonia, for its part, allows to run this business, however there are severe obligations, for example, if you want to open a licensed casino, the owner must have a good reputation.
Moreover he needs to get special permission. You can get gambling license in Estonia only if you are going to open a casino with slots, poker, Black Jack, etc. If the gambling club is combined with the bookmaker company, it won’t get this license.
What are the advantages of this jurisdiction?
At the moment Estonia is one of the most ambitious countries, where the online gambling business is developing quite fast: every year new operators appear.
In 2008 during the World Crisis, Estonian authorities decided to cancel the restriction for the online gambling business. This decision was taken in 2010, when the authorities made modifications in the country’s economy and its legislation. Thus, Estonia started to receive the investment from abroad and annulled the restriction for international hosting.
In the same year the first licensed online casino was opened. New gambling businesses appeared. This affected the country in the best way, because the great sum of funds which had been invested in, replenished the country’s finances very fast. From 2010 year the gambling market has been evolving very fast, bringing new operators who want to win over new audiences.
According to the latest statistics, the population of small Estonia counts 1.5 million people and more than 170 gambling clubs function there. During all the time of their activity, almost 80% of estonian population visited these clubs.
But there is one minus, a licensed online casino cannot accept players whose age is lower than 21 year-old. But they can play the games which do not have the random number generation.
How to open a licensed casino in the country
Operator will get the approval for running the gambling business in Estonia only if his company includes the following departments::
– a joint-stock company;
– partnership with the limited liability.
To increase the possibility of getting the license, the operator will need the auditor’s services and the minimal capital ( in amounts of not less than 1000 euro). Besides, he will need to have the financial reserves. The reserve fund has to count 33% from the minimal capital.
Also the operator must replenish the reserve funds regularly from the profit received from the gambling club.
Online gambling taxes
The tax payments have to be strictly declared and after this they have to be paid till the 15th day every month. The tax rate in the country is as follows:
– 1278.23 euro for one table
– 300 euro for one slot
– 10% from the total amount received from the bets. The amount of this payment is reduced by the sum of paid winnings.
What documents does the operator have to possess
For passing the procedure of licensing , the operator will need to provide the big set of documents:
- The full data packet about every resident of the Company and the information about all the members of the board of directors;
- The shareholders and owner’s ID copies;
- The biography and copies of the personal documents of the shareholders who posses the biggest amount of the company stock;
- Application which is obligatory for starting the procedure of licensing and checking the documents, provided by the operator;
- The Charter of Organisation and the documents which confirm the payment of fees.
The procedure of licensing is conducted by the one body: Tax and Customs Board of the Republic of Estonia. After filing the petition, the decision is taken within the half of the year. When it is finally approved, it is necessary to send all the documents for their consideration. Usually it takes 3-4 month.
To issue a license in Estonia as fast as possible and collect all the necessary documents, we recommend you contacting the local legal officer who assists in the questions related to getting the gambling license.
The price of this license consists of:
- 3 000 euro – taxes which are charged for processing the request of getting the license;
- 48 000 euro – the price of the license.
Advantages of Estonian License:
- Online Casino get permission for work on the European Union territory;
- The possibility of working with the big EU banks, which will affect the user’s trust;
- Large and famous technology companies which develop software, ascertain the operator’s reliability and sell their software and new slot machines;
- Unique EU number;
- Pretty low taxes;
- Chance to find big european investors.
The reasons why the request of getting the license in this jurisdiction can be rejected:
- If one of the shareholders or the owner has a criminal record;
- If there are any violations or fraudulent activity in the online-gambling domain of each of the existing jurisdiction;
- Bankruptcy in the previous company;
- Investors and other members’ bad reputation.