Flaws in gambling oversight: Kessler warns about insufficient control of online casinos
Expert Kilvar Kessler points out that Estonia's policy to attract international online casinos could lead to serious problems if oversight is not simultaneously strengthened. He proposes four improvements, including flexible fines and clear responsibility for the overall risk picture.
Estonia aims to attract more international online casinos, hoping for tax revenue. However, as expert Kilvar Kessler writes, if the market grows faster than oversight, society and players may bear the costs.
According to the European Public Prosecutor's Office, Lithuanian Šarūnas Stepukonis allegedly lost €31.6 million at one Estonian casino. This indicates a system that tracks money flows but fails to brake when needed.
At the end of 2025, Estonia had issued 53 gambling licenses and 38 betting licenses to 44 companies. In 2024, the Tax and Customs Board (MTA) completed 140 supervisory proceedings in gambling, and 132 in 2025. The supervisory team was increased from six to eight people. The reform planned to create three additional positions at the Money Laundering Data Bureau (RAB), but in 2024 RAB initiated no cases against casinos, and only two in 2025. RAB assesses the sector's residual risk as high and does not consider the current fragmented supervision model optimal.
Currently, MTA oversees compliance with the Gambling Act, RAB follows anti-money laundering requirements, and other agencies monitor advertising, consumer rights, and data protection. Each supervises its own corner, but no one sees the whole picture. Responsibility is so diffused that no one is effectively accountable.
MTA, which collects taxes from casinos, must also be ready to restrict this income source, even revoking licenses. This creates a conflict of interest. The maximum fine for violations is €26,000, a trivial amount for large international casinos. Kessler argues fines should depend on casino size and revenue.
Casinos are not neutral gaming tables – they use fast game cycles, visual effects, and bonuses to extend playtime. Casinos can track client behavior, so they should be obliged to recognize risky behavior and intervene before catastrophic losses occur.
Kessler proposes four changes: fines proportional to casino size; a single authority with clear responsibility for the overall risk picture; mandatory requirements for game aspects; and specifying in law the duty of active player protection, especially for online casinos.
Estonia can be attractive for international online casinos, but attractiveness should not mean opening doors before strengthening oversight. As with cryptocurrency markets, companies arrived first, problems emerged, and only then did the state intervene. The same mistakes should not be repeated with online casinos.
