If you really mean small then they might not be for you, but OrangeWebsite.com is in Iceland and has been reliable and helpful for over a year. They accept bitcoin.
By small I mean big, hehe.
Are there other bitcoin casino sites hosted with Orangewebsite?
I cant seem to find any information like "the best would be to host in this country.." etc or something similar, I hope someone has some information or know what steps to take. Any good advise will be rewarded once we are up and running

Any country with legal online gambling should be fine, UK could be one place.