Join the Deep TG Channel: PASA Gambling Insights
The Latvian government recently announced that it will raise the national gambling tax policy ahead of schedule, starting from January 1, 2026, the tax rate will increase from the current 15% to 18%. This measure was originally planned to be implemented in 2027, but due to financial pressure and budget review results, it was finally implemented one year ahead of schedule.
Tax Rate Adjustment Details
According to the new regulations, the tax rates and fixed costs for different types of gambling businesses will be synchronously increased:
Interactive gambling revenue: Tax rate increased from 12% to 15%;
Telephone gambling revenue: Tax rate increased from 15% to 18%;
Annual tax amount for table games: Increased from 33,696 euros to 40,440 euros;
Annual tax amount for gaming machines: Increased from 6,204 euros to 7,440 euros.
The Ministry of Finance expects that this adjustment will bring an additional 9.2 million euros in revenue to the national treasury each year, of which about 175,000 euros will be directly allocated to local municipalities.
Government Attitude and Regulatory Strengthening
Latvian Finance Minister Arvils Ašeradens commented on the legislation, saying: "Incorporating gambling regulation into the State Revenue Service (SRS) can accelerate the establishment of a unified management system, make more efficient use of resources, and provide better services to the public."
This move not only reflects the government's emphasis on the gambling industry as a source of fiscal revenue but also reflects the trend of stricter regulation.
Industry Concerns and International Comparisons
However, industry insiders worry that the high tax burden may have side effects. Just last week, the Dutch lottery issued a warning: Continuously increasing national gambling taxes may force some players to flow to the black market, weakening regulatory effects.
Globally, gambling tax policies are also tightening:
Sri Lanka: The cabinet approved an increase in gambling taxes and doubled the casino entry fee;
United Kingdom: Labour Deputy Leader Lucy Powell has clearly expressed support for increasing gambling taxes, and related political calls are heating up.
Industry Dynamics
Meanwhile, technical cooperation in the Latvian gambling market continues to upgrade. Supplier Scientific Games has deployed a new central gaming system for the Latvian lottery in 2023, continuing a partnership of over 20 years.
As financial pressures rise and social responsibility awareness increases, Latvia's acceleration of gambling tax reform has become a fact. For the government, this is a key step in increasing revenue and strengthening regulation; but for operators and players, it means higher costs and potential market spillover risks.
