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G3 June 2018 Reports ESTONIA MARKET P56 NEWSWIRE / INTERACTIVE / MARKET DATA Estonia Punching above its weight Following on from our report on Lithuania at the end of last year, we take a look the diverse gaming markets of Estonia, the smallest of the Baltic trio, to discover what makes one of the countries with the fastest growth rates in the EU, also a hotbed for gaming activity. Estonia emerged from its Soviet shadow 30 years witness to a US$230bn ongoing money ago and has gained a reputation as a country laundering investigation, but not a suspect. His with political stability, a free media and has body was found two days after he disappeared become one of the most economically successful near his home and is being treated as suicide. eastern European members. On a more positive note, the state budget strategy Although growth is slowing due to infrastructure for 2020-2023 incorporates five priorities – a spending, an ageing population, weaker export family friendly Estonia, a cohesive society, a markets and labour shortages, it still comes out knowledge-based economy, efficient governance at the top of the economic growth chart. and a free and protected state. The economic growth rate in 2019 was 3.3 per Estonia has a reputation of being at the cutting cent and is expected to drop to 2.1 per cent this edge of information technology and by 2016 year according to forecasts by the Bank of some 91 per cent of the population were online. Estonia. The unemployment rate is currently 4.6 Television is the country’s most popular medium per cent and is also expected to increase. and has attracted foreign media groups and the main privatelyowned stations are run by three There are still undercurrents of corruption and companies. Eesti Television, TV3 and Kanal 2 are crime. Danske Bank, for example, is undergoing the main public and commercial television sites. another round of lawsuits over alleged money laundering, including a suspicious payment that The country’s media last year was ranked 11th went through a small branch in Estonia between “most free in the world,” but lately there have 2007 and 2015. been stories of censorship and threats to journalists sharing ‘aggressive’ political articles. Early last year, the former head of Danske Bank Several high profile journalists have quit their in Estonia was founded dead. Aivar Rehe had jobs after being offered a choice between “self disappeared in September and was apparently a censorship or departure” after criticising political Estonia has a reputation of being at the cutting edge of information technology and by 2016 some 91 per cent of the population were online. Television is the country’s most popular medium and has attracted foreign media groups and the main privately owned TVs are run by three major companies. Eesti Television, TV3 and Kanal 2 are the main public and commercial sites. NEWSWIRE / INTERACTIVE / MARKET DATA P57 Reports ESTONIA MARKET The share tourism contributes to Estonia’s GDP and employment is around eight per cent. Some 3.6 million tourists visited Estonia in 2018 - this figure was an increase of 1.3 per cent on the previous year and the number of foreign tourists accounted for 2.14 million, mostly consisting of Finnish, Russian, German and Latvian visitors to the country. party EKRE on air, whilst the owner of leading be prime minister and the two parties would newspaper, Postimees, appointed Peeter Helme share ministerial posts equally. (nephew of EKRE leader) as editor in chief, who later asked staff to “moderate” their style. He However, Ratas instead arranged a three-way resigned from the position late last year. right wing coalition agreement with the conservative Fatherland party and far right This all stems back to early last year when EKRE, which enabled him to stay on as prime parliamentary elections were held in March. minister. The three now have a total of 56 seats EKRE has highlighted immigration as a key Although the election was won by the in the 101 member parliament. issue. In reality, Estonia is not on any major opposition centre right Reform party, a coalition escape route into Europe and has a very small government had to be formed after the party EKRE is said to be the fastest growing political number of refugees, but EKRE has strict policies failed to win a majority. force in Estonia and is headed by father and son saying Estonia will not take any refugees as part Mart and Martin Helme, who are staunch white of a European Union wide quota. A referendum The leader of the Centre Party of Estonia, Juri supremacy nationalists. is also due to be held in 2021 on whether Ratas (the then Prime Minister) invited EKRE to heterosexual only marriages should only be join a coalition government. The Conservative It managed to win voters over after a major rural permitted. People’s Party of Estonia (EKRE) won 19 of the party, the People’s Union, shuttered back in 2011 101 seats in the March 2019 parliamentary leaving around 15 to 20 per cent of the electorate The parties also share ministries between them elections. unrepresented. EKRE promoted lower taxes, whilst Finance, Interior, Environment, Rural increased government spending, anti immigrant Affairs and Foreign Trade are headed by EKRE. Kaja Kallas, who would have been the country’s policies and pro-family traditionalism and Mart Helme is Interior Minister and Martin first female prime minister, had offered Ratas managed to increase its party vote from eight Helme is Finance Minister, which governs the and his centre party a coalition where she would per cent in 2015 to 18 per cent in 2019. gambling sector. P58 NEWSWIRE / INTERACTIVE / MARKET DATA Although Estonia is not an obvious tourist population spread across 15 counties. These 3.6 million tourists visited Estonia in 2018 - this destination, it is fast becoming popular with counties are then divided into municipalities – figure was an increase of 1.3 per cent on the hiking fans and nature lovers eager to explore urban and rural. A maakond (county) is the previous year and the number of foreign tourists this rugged land. biggest administrative subdivision, whilst the accounted for 2.14 million, mostly consisting of government of each county is led by a governor Finnish, Russian, German and Latvian visitors to After years under Danish, Swedish, German and who represents the national government at a the country. Russian rule, Estonia eventually gained regional level. independence in 1918. After being incorporated Total tourism receipts for that year amounted to into the USSR in 1940 it regained freedom in Although geographically Estonia shares a €1.98bn and there are around 1,600 1991 and the last Russian troops left in 1994. similarity with Latvia and Lithuania, it is accommodation venues offering more than culturally different and offers everything from 40,000 beds. The country joined the EU in 2004 and the forests, lakes and islands to the captivating OECD in late 2010, adopting the Euro in 2011. capital city, Tallinn. Amendments to the Tourism Act were Estonia borders the Baltic Sea and Gulf of introduced in July 2018 improving the conditions Finland between Latvia and Russia. It’s a The share tourism contributes to Estonia’s GDP for travellers with increased protection and sparsely populated country with its 1.3 million and employment is around eight per cent. Some clearer information for travel packages. NEWSWIRE / INTERACTIVE / MARKET DATA P59 THE GAMBLING MARKET opened up further in 2011 and permitted foreign lotteries with a prize pool of less than €1,000 When Estonia was part of the USSR, all types of operators in a bid to boost revenues. These and commercial lotteries. gambling activities were banned even though companies must obtain an Estonian gaming illegal casinos still operated despite the licence to operate. l Operators of games of chance can be prohibition. However, the real history of organised by a Public Limited Company or gambling in Estonia began once the country was The issue of activity licences and operating Private Limited Company with a share capital released from Soviet rule in the early 1990s. The permits falls under the Maksu-Ja Tolliamet of at least €1m. country was so eager to bring foreign (Estonian Tax and Customs Board – EMTA). investment into the country it dished out l Operators of games of skill can be operated by licences like confetti. Today, the Estonian gambling sectors are a public or private limited company with governed by the Gambling Act 2008, the share capital of at least €25,000. In 1994, the government took a regulatory Gambling Tax Act plus the State Fees Act and approach and enacted the Lottery Act and a year General Law on Economic Activities Act and l Toto operators must be public or private later the Gambling Act. This saw four types of Money Laundering and Terrorist Financing limited companies with share capital of at gambling introduced – games of chance, games Prevention Act. least €130,000. of skill, totalisators and betting. The gambling market boomed and there were 90 plus casinos The Gambling Act of 2008 includes the l An Operating Permit is issued for the opening and gaming halls in Tallinn alone by 2008 and following: of a gaming location to operate games of more than 170 casinos and gaming halls in total chance, Toto, games of skill, organising across the country. l Types of gambling permitted are games of remote gambling or organising a lottery. chance (gaming tables, slots etc); lotteries These are issued for five years (lottery and In 2009, the new Gambling Act 2008 was (classical and instant); Totos; games of skill; remote gambling) or 20 years (games of skill introduced providing a tighter legal framework remote gambling (introduced in 2011); locations) and five to 20 years (games of to help curb underage gambling and included commercial lottery and tournament games of chance and Toto locations).
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