Yes, it is! Previously, online casinos were banned almost worldwide. Today, governments of different countries are adapting the iGaming environment to suit their interests. On the one hand, they control online casinos, and on the other, they create conditions for their profitable evolution. It has long been clear that the gambling business is one of the most profitable, and its legalization guarantees millions in taxes to the state budget.
Currently, gambling accounts for 40%+ of the market for all online entertainment. Operators quickly adapt to the audience and offer appropriate bonuses, payment solutions, same-day withdrawal transactions, responsible gambling tools, assistance, etc. So, iGaming is booming! Of course, this is largely because many countries have moved from prohibitive to regulatory strategy. This also affected the Baltic countries.
Baltic Gambling Market Features
The Baltic countries are members of the European Union, and generally loyal to gambling. However, they strictly regulate all gaming activities and impose taxes, including winnings. Gambling laws in Latvia, Lithuania, and Estonia allow online casinos, sports, and horse racing betting. Nevertheless, the activities of Internet resources are strictly regulated by local legislation. The audience prefers slots, lotteries, top Gamblorium casinos, sports betting, etc. Basic requirements include:
- Availability of a state license.
- Registration of the site in the relevant jurisdiction.
- Serving only adult players! 18 years old - in Latvia and 21 years old - in Lithuania/Estonia.
Besides, the operator must pay taxes under local laws and comply with all industry standards and regulations. Clandestine online casinos are blacklisted. The authorities' attitude towards legal gambling resources that comply with all laws, norms and rules is quite loyal.
Baltics: Attractive Investment Market
Recently, the economies and the living standards in this region have grown significantly. Meanwhile, the laws have been relaxed - now, they do not prohibit the gambling business but regulate its activities. For example, in 2005, Latvia adopted the Law on Gambling and Lotteries and created IAUI. So, private casinos and bookmakers were required to obtain a license.
Moreover, almost the entire population has access to the Internet, making the Baltic countries a promising region for online casino market growth. Hundreds of licensed bookmakers and gambling sites with roulette, slot machines, and card games are already operating in Latvia, Lithuania, and Estonia. Entertainment is available to everyone who has reached the required age.
State Budget Replenishment & Additional Jobs
To work legally, online casinos require a state license. It's quite expensive. For example, in Lithuania, its minimum cost is €260,000. In Latvia, the cost of an online casino license is €200,000. Besides, the official activities of online casinos imply that the operator is obliged to pay the appropriate tax. For example, in Latvia, casinos are required to pay a tax of 10% of gross profits. Therefore, the appearance of a new brand in the list of legal gambling operators in any country helps to increase revenues to the state treasury.
Players must also pay taxes on their winnings. In Latvia, they pay taxes on winnings over €3,000. In Estonia, a gambler is not required to pay income tax on his/her winnings if the winnings were received at a legal iGaming site. Winnings received by an Estonian player in foreign casinos or casinos without an Estonian license must be reported in the income tax return. So, an income tax of 21% must be paid per win.
Let's take the experience of Estonia as an example. Online gambling in Estonia has been legal since 2008. The main reason was the financial crisis of 2008-2009. The government hoped that by allowing online casinos and taxing them, they could generate additional revenue to stabilize the country's finances. Nowadays, the gambling industry here is an important sector of the country's economy. It includes online casinos, lotteries, sports betting, and TV games.
Of course, online casinos require significantly fewer employees than land-based ones - there is no need for security guards, cleaners, etc. However, there are many different jobs available here that are especially attractive to those looking to work from home. Each site needs, for example, programmers who will monitor the reliability and uninterrupted operation of e-services. Casino customer service also requires specialists who will answer phone calls, and emails and advise users via chat. The activity of each online casino is the work of a large team. Therefore, when a new project is launched, many in-demand vacancies open up.
Baltic Gambling Market Legalization: Benefits For All Process Participants
In general, the Baltic gambling market is considered quite profitable and promising due to transparent and uncomplicated legislation. An important role is also played by the population’s great interest in online games, a wide selection of entertainment (roulettes, slots, slot machines, betting, horse racing, virtual casinos, etc.), and a lenient tax rate. Of course, the legalization of iGaming and its regulation provides benefits to operators, casino clients, and the country. Websites can do their business legally and get the state's support. Gamblers now have guarantees of fair play and receiving winnings through proven and reliable payment methods. Financial system owners also receive profits - commissions for making payments to e-wallets and bank cards.
Online casinos operate successfully in Latvia, Lithuania, and Estonia. The legalization gives the state additional taxes on the budget. So, many parties are interested in gambling industry development - states, companies, financial organizations, online payment operators, and the players themselves. Therefore, we can confidently say that the legalization of iGaming has become the best solution for the Baltic countries.
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