Future of gambling: how Baltic countries become an excellent home for online casinos.

IGaming is considered one of the fastest-growing entertainment industries in the world. Over the past years, its market volume has increased by more than ten percent annually. The pundits suggest that this trend is going to continue in the coming years. According to the latest estimates, 40% of the digital entertainment market belongs to online casinos. Meanwhile, Europe is one of the leading centers of online gambling platforms. A special place on the European digital casinos' map belongs to Baltic countries like Estonia, Lithuania and Latvia.

The online gambling industry has started to develop in the Baltic region relatively recently. However, Estonia, Lithuania and Latvia have become one of the most popular iGaming investment destinations on the European continent in just a few years. Below we will discuss what attracts investors' attention to the Baltic countries.

People's interest in gambling

Before entering a new market, iGaming investors estimate potential consumers' demand for online gambling. The Baltic States' economies develop rapidly and the population's average income is relatively high. Therefore, the majority of residents have enough funds to spend on entertainment. Moreover, they are considered to be pretty risky people opting for new thrilling emotions. As a result, with widespread use of the Internet and mobile devices, the number of online gamblers among Estonians, Latvians, and Lithuanians is growing daily, making these countries very alluring for iGaming investors.

Favorable environment for gambling

Another point that plays an essential role for the investor is the business conditions. Currently, there are hundreds of licensed online casinos and bookmakers operating in Estonia, Lithuania and Latvia. It confirms that these countries have established a favorable legislative framework for online casinos and sportsbooks. Therefore, anyone of legal age can play online slot machines, card games or roulette and place bets on their favorite sports. The number of online gambling companies is constantly growing. 

In Estonia, online casinos are regulated by the Gambling Act (2008), which allows private companies to obtain a five-year gambling license. Here, you will find a dedicated page for the best online casinos in Estonia. In Latvia, gambling platforms provide their services under the Law On Gambling and Lotteries (2005). The gambling license is issued indefinitely but must be renewed annually. Moreover, companies can obtain a single license to operate both land-based gambling halls and online casinos. It is also important to note that there are no restrictions on the number of licenses the company can get in Latvia. This policy makes many investors prefer Latvia when choosing a jurisdiction for registering an online casino. 

In Lithuania, land-based casinos have operated since 2001. Yet, only in 2020 the Lithuanian government allowed online gambling platforms. However, to register an online casino, the company must have a license for a land-based gambling hall. Compared with Estonian and Latvian gambling laws, Lithuanian legislation seems to be stricter. As a result, iGaming investors would rather choose Estonia and Latvia for online casino registration.

Reputation

A gambling license issued by an EU country increases customers' confidence in an online casino or sportsbook. Therefore in legal disputes with the gambling platform, players can apply for assistance from European country authorities. Moreover, the European justice system is considered one of the most effective and transparent in the world. It gives an additional argument in favor of the Baltic countries as an excellent place for new gambling start-ups.

Final thoughts

According to experts' forecasts, online casino market capitalization will have reached 112 billion dollars by 2025. No wonder more and more countries are softening their legal restrictions on gambling to get their share of income from this industry. Baltic countries are the ones to catch a new global trend. Meanwhile, solvent potential consumers, favorable legislation and a transparent justice system make these states perfect places for iGaming investments. There is every reason to believe that Lithuania, Estonia and Latvia will soon be able to compete with such popular gambling investment destinations as Curacao or Malta.