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Estonia Moves to Update Gambling Legislation

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Estonia Moves to Update Gambling Legislation

Estonia is preparing to modernize its gambling laws—but without imposing stricter regulations. With an evolving gaming landscape and growing concerns about problem gambling, the Ministry of Finance has announced upcoming amendments to the Gambling Act of 2008.

The changes will focus on self-exclusion measures, online game mechanics, and advertising standards while avoiding further tax hikes or ad bans. Estonia’s government aims to balance consumer protection with market stability, ensuring the gambling industry remains competitive.

But will these revisions be enough to address concerns over problem gambling? And how do they compare to regulatory changes across the Baltic region?

Estonia Plans Gambling Act Reforms Without Stricter Regulations

Key Points:

  1. Expanded Self-Exclusion Scheme for Problem Gamblers

    • Estonia’s HAMPI self-exclusion system will allow family members to request bans for relatives at risk of gambling addiction.
    • The Ministry is considering court-mandated exclusions but worries the legal process may discourage applications.
  2. Regulations on Online Game Mechanics & Incentives

    • Lawmakers are reviewing game design rules, particularly in-play mechanics, to address concerns over gambling addiction risks.
    • Despite calls for regulation, loot boxes and virtual currency in video games will not be included in this round of reforms.
  3. No New Gambling Tax Hikes or Full Ad Ban

    • Last year’s increase in remote gambling tax from 5% to 6% will remain unchanged, with further reviews planned.
    • While gambling ad restrictions will be clarified to prohibit misleading claims, a total ban remains off the table.

Estonia’s Path to Responsible Gambling Reform

Self-Exclusion Scheme to Include Family Requests

A major change in Estonia’s revised gambling laws will be the expansion of the HAMPI self-exclusion register. Currently, gamblers can voluntarily add themselves to the system to block access to gambling platforms.

The Ministry of Finance now wants to allow family members to request exclusions for at-risk individuals. However, concerns remain over how to balance consumer rights with protection measures. The Ministry is also exploring court-mandated exclusions but fears a complicated legal process may deter families from seeking intervention.

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This move aligns with global trends toward proactive problem gambling prevention, mirroring initiatives seen in other European markets.

Focus on Online Game Mechanics, Not Loot Boxes

Estonia’s Economic Affairs Committee has raised concerns over gambling addiction, particularly in relation to in-game mechanics. This has prompted a review of rules regarding in-play features and gambling incentives.

However, loot boxes and virtual currency purchases in video games will not be regulated at this stage. Estonia’s government maintains that the current minimum gambling age of 21 is sufficient to protect minors from exposure to gambling risks.

Despite these discussions, Estonia remains committed to a regulatory approach that does not overburden operators while addressing player protection concerns.

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No Additional Tax Hikes or Advertising Bans

Estonia raised its remote gambling tax from 5% to 6% in 2023, along with tax increases on lottery sales and gaming tournaments. While the Ministry of Finance will monitor feedback on these changes, no further tax hikes are planned.

Additionally, a fresh push for a full ban on gambling advertising appears unlikely. The coalition government initially considered prohibiting TV and radio gambling ads, but opposition blocked the proposal. Instead, upcoming amendments will clarify existing advertising rules, preventing operators from making misleading claims—such as suggesting gambling can solve financial problems.

This measured approach stands in contrast to Latvia and Lithuania, where stricter gambling controls are being introduced.

How Estonia’s Changes Compare to Baltic Neighbours

Latvia’s Strict Land-Based Gambling Restrictions

Latvia is considering an almost complete ban on land-based gambling in its capital, Riga. The city council has proposed new regulations limiting casinos to a few designated areas, significantly reducing accessibility.

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Lithuania’s Tightened Online Gambling Rules

Lithuania’s Ministry of Finance has submitted new online gambling platform requirements to the European Commission. The new framework includes enhanced security, compliance, and data management rules to ensure stronger oversight of remote operators.

While Estonia’s approach is more moderate than its Baltic neighbours, its decision to avoid aggressive tax hikes and marketing restrictions could help maintain a stable legal market while addressing gambling risks.

Estonia’s Balanced Approach to Gambling Reform

Estonia’s planned gambling law amendments strike a balance between industry growth and responsible gambling measures.

  • Expanding the HAMPI self-exclusion system to allow family-initiated requests marks a major step in consumer protection.
  • Adjusting online game mechanics while avoiding overregulation of video game loot boxes ensures market flexibility.
  • Clarifying gambling ad rules while rejecting a full ban keeps marketing practices fair without stifling operator reach.

Compared to Latvia’s land-based gambling restrictions and Lithuania’s tightening of online regulations, Estonia’s measured approach ensures responsible gaming policies without stifling industry growth.

As the new Gambling Act amendments head for review by mid-2024, Estonia’s approach could serve as a model for balancing market freedom with effective player protections.

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Jerome, a valuable addition to the Gamingo.News team, brings with him extensive journalistic experience in the iGaming sector. His interest in the industry was sparked during his college years when he participated in local poker tournaments, eventually leading to his exposure to the burgeoning world of online poker and casino rooms. Jerome now utilizes his accumulated knowledge to fuel his passion for journalism, providing the team with the latest online scoops.

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