British casino enthusiasts are flocking to the Baltic nation of Estonia as it has become the new ‘must visit’ destination in European gambling.

For a country with a population of scarcely more than a million, the small state has taken to gambling in an extraordinary fashion.

The former Soviet nation boasts 139 casinos and was one of the first to embrace the industry following post-Communist deregulation after Estonian independence in 1991. Last year Bluff Europe, the European poker magazine, heralded the Estonian capital, Tallinn, as one of the top three cities in Europe for the game.

Estonia has been a beacon for the Eastern European economies. It pioneered the 'flat tax' - among the lowest in Europe - a model followed by eight other states, including Russia. So radically right-wing were the changes that observers said the then Estonian Prime Minister made Margaret Thatcher look like a socialist.

It is against this backdrop that the casino industry, like many others, has grown exponentially. At least 18 gaming companies have piled in, making it a European Las Vegas. The Olympic Entertainment Group, which is partly owned by HSBC, has an estimated 45 per cent share of the Estonian market, showing how enthusiastically the locals have taken to the new gambling establishments.

Success has made Armin Karu, the owner of OEG in Estonia, one of the country's richest men. In 2005, OEG had 16 casinos compared with 38 in neighbouring Latvia, yet still surpassed it in terms of revenue by 78 per cent. By 2007, demand was such that 35 casinos had been built and operations in Estonia accounted for more than a third - €55.3m (£44m) - of OEG's revenues, despite it expanding into countries such as Belarus, Ukraine, Poland and Romania.

So Estonia is likely to continue as a 'stag-do destination'. Apart from the stunning beauty of the country it seems the nightlife too has something unique to offer.

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