Estonia, a small European country bordering with Russia, has recently legalized online gaming as a way to increase its tax income. The decision seems to have been aided by the success of the Baltic Poker Festival hosted by PokerStars.
For now, Estonian citizens will only be allowed to play on Estonian-based platforms such as Playtech‘s collaboration with the Olympic Casino Group, before opening up to international operators in 2011. This leaves the Playtech group in a very favorable position at the moment as the main provider of legal online gaming in the land. Playtech’s Executive Manager, Mor Weizer, commented on this development: “We are truly glad of this opportunity to start our partnership with Olympic as the leading casino entertainment provider in Central and Eastern Europe.”
Estonia is one of the smallest European Union (E.U.) countries, with only 1.33 million citizens. It borders north and west with the Gulf of Finland and Baltic Sea, respectively, as well as Latvia on the south and the Russian Federation on the east. Because of its bridging position between Europe and Russia, Estonia was invaded by the Soviet Union and Germany before regaining independence in 1991. At this point, Estonia started an aggressive and effective reform and growth program, which saw it become one of world’s fastest-growing economies for several years. It joined the EU in May 2004 and was hoping to adopt the Euro as its currency by 2013. This is where online gambling comes in.
Estonia seemed a shoo-in for the Euro currency until the 2008-2009 economic crisis, which left it with the second most damaged economy of the EU, down by about 36%. A country must meet strict criteria to join the Eurozone and Estonia is taking pains to bounce back from the depression in time to join. The Estonian government hopes that taxing gaming operators will help revive its economy with the added income and influx of new jobs.
According to the Estonian Free Press, large international online gaming operators are currently showering Estonia with attention in the form of large advertising campaigns about upcoming services and there are rumors about millionaire investments planned for the country, which is seen as a gateway to the whole Baltic region’s market.
Although online gambling remains a sore topic in the European Commission, where nations such as Germany and France block all online gaming in order to favor their state monopoly operators, more and more countries are opening up to its legalization and taxation. Estonia joins the likes of Belgium, Italy, the Netherlands, Poland and Sweden in creating legislation that allows online gambling, ensures it is taxed appropriately, and ensures its citizens are safeguarded against negative side effects like fraud, money laundering and underage gambling.
