The Latvian government has brought forward plans for a gambling tax hike to New Year 2026, a year earlier than anticipated.
The tax increases were originally scheduled to be put in place on January 1st 2027 under plans approved last December but the timeline has been cut down following a spending review by ministers last month.
There are other big changes on the horizon in Latvia as the government is set to close down the country’s Lottery and Gambling Supervision Inspectorate (IAUI). The regulator will merge into Latvia’s State Revenue Service (SRS) at the start of April, three months earlier than planned.
Latvia isn’t the only European country exploring gambling form at the minute with Denmark also considering advertisement restrictions and a tax hike.
Additionally, a recent poll from the United Kingdom revealed the public want to increase gambling taxes to fight child poverty.
From January 1st next year, Latvia’s gambling taxes will increase from 12% to 15% of gross gaming revenue (GGR) on interactive gambling and 15% to 18% of GGR on telephone-based betting revenues.
Annual gaming machine taxes will increase from €6,204 to €7,440 while contributions on roulette, card and craps tables will go up from €33,696 to €40,440 per year.
Latvia’s Ministry of Finance has estimated the country’s tax increases will raise €9.2 million and of that total, €175,000 will go to municipalities and the rest into the state budget.
Finance Minister Arvils Ašeradens said the early closure of the IAUI will bring a number of benefits including administrative cost savings.
From the beginning of April, the country’s gambling industry will be controlled by two regulators with the IAUI focusing on regulatory compliance and licensing matters, and the SRS responsible for tax matters.
Both regulators have the power to enforce sanctions, conduct investigations and introduce anti-money laundering measures.
The decisions on moving plans forward came after a government cabinet meeting at the end of August. Ministers involved discussed the state budget and spending plans across different areas through to 2029.
The government wants to raise €565 million in additional funds for security, family support and education in next year’s budget. Next month on October 15th a package of draft laws, including the gambling tax hikes, will be submitted to Latvia’s parliament for approval.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
