The Baltic iGaming market is a rapidly evolving one, where competition for users has become increasingly fierce. Between the three Baltic states of Estonia, Latvia, Lithuania., this region is in a period of strong growth and doesn’t appear to be slowing down anytime soon.
With Estonia, its online gambling revenue has risen by 220% over the last few years, from €105 million in 2020 to €336 million in 2022, according to the Estonian Tax and Customs Board. Meanwhile, Latvia has seen significant gains as well, with revenue in its online gambling market projected to reach €135.50m this year, resulting in an annual growth rate of 7%. For Lithuania, its market is larger than Latvia, but is seeing similar growth rates with an annual growth rate of 6.78% and revenue projections of €315.50m for 2023.
Looking at these figures, it's the opportune time to connect with this market and we’ve put together this piece to facilitate that for brands. We spoke with Kevin Ivo Ideon, Head of Affiliates at OlyBet, to get their expert opinions from years of experience in the area. With his insights, we’ll break down each Baltic state, their user tendencies, along with suggestions on how to market to these users.
Estonia
Estonia is a rapidly growing iGaming market within the Baltics, seeing significant increases in revenue as mentioned above. It’s estimated that nearly 80% of adults have tried to gamble in the country, showcasing how much appetite there is in the market for gambling. Additionally, of those players, 25% of online users have been active on a weekly basis, demonstrating an active and engaged user base that will hopefully continue to grow.
While Estonia has the smallest population of the three Baltics states, that doesn’t mean they should be ignored by operators looking to come into the area!
Latvia
While Latvia hasn’t seen the explosive growth of Estonia over the last two years, it’s growing at a steady pace, with its gross win estimated to be €172 million in 2026 (it was €109 million in 2021), which shows a solid 10% increase within five years.
On the other hand, Latvia is taxing more than the other two countries in the Baltics, which may be a reason they’re not seeing the same growth in their regulated market. Latvia is also strictest when it comes to its advertising rules, making this a slightly trickier market, but still one that should be attractive to brands looking to expand into the Baltics.
Lithuania
Lithuania is the largest of the three Baltic states, with a population of nearly three million people and a strong history of gambling in their country. They’re seeing their audience transfer more into online gaming, with 63% of total revenue from Q1 in 2023 coming from online gambling. H2 Gambling Capital expects that to continue, as they expect the share of online vs offline gambling in Lithuania to be 63% vs 27% by the end of this year.
When asked to identify the Baltic iGaming market with the most potential, Ideon of OlyBet quickly pointed to Lithuania, saying “all three markets have potential for massive growth, but I would put Lithuania at the top of this list. While bonuses and encouragements to gamble are not allowed in Lithuania, the audience is still there and looking to play, they just need to be approached the right way.”
Suggestions to Operators
While there is plenty of growth in the area, there are still some challenges, which Ideon helped identify. “All three markets have specific rules and regulations, which provide challenges but with the ban of bonuses, I would say Lithuania is at the top of that list for now. To standout, the product needs to convince customers by providing top of the market odds, high selection of casino games and smooth, easy on the eye design.”
Without the ability to promote the same way as other markets, the product offered will be paramount for success in this area. Offering localized content and events can help brands connect with this growing audience.
Due to the regulations, brands are additionally looking at different marketing options, including affiliate marketing. As in most iGaming markets, affiliate marketing presents an efficient and cost-effective solution for brands looking to reach different users in all three of the Baltic states. If you’re interested in learning more about affiliate marketing offerings, reach out to our team today.
Going Forward
While the Baltic states don’t have the same population as other iGaming markets, they do have an engaged user base across all three countries, making this an exciting market to keep an eye on as online gambling continues to evolve.
Brands looking to join the market need to be certain that they have a properly localized product, the right offers, and should consider different kinds of marketing to try and reach new users.
