At an extraordinary meeting on 3 December, the Latvian government supported an increase in gambling tax rates, which will come into force on 1 January 2026. The amendments were developed as part of the preparation of the 2026 budget. They went through several stages: initiation as part of the budget package, discussion and evaluation in relevant committees, amendments to accompanying documents, and a final vote at a plenary session of the Saeima.
During the preparation stage, a one-year transition period was considered, but in the final version, the Saeima cancelled the transition period, and the new rates will apply immediately from the beginning of 2026.
Average increase in annual fees of 2.5%
The annual fee for slot machines will increase from €6,204 to €7,440, and for table games from €33,696 to €40,440. The tax on bets will increase from 15% to 18% of revenue, for bingo, the rate will rise from 10% to 12%, and for online interactive games from 12% to 15%. The Ministry of Finance expects the changes to bring an additional €9.2 million to the budget, of which about €175,000 will go to local budgets.
The official motives of Latvian lawmakers are to increase state budget revenues and strengthen control over the industry. The Seimas plans to allocate the additional tax revenues to social institutions. The cancellation of the transition period is explained by the desire to accelerate the effect on the budget, but this decision may increase tensions with operators.
The market and operators have reacted critically to the amendments: legal complaints, a review of business models and attempts to transfer traffic to foreign platforms are possible. The direct effect on local authorities is limited, as only a small portion of the expected revenue will go to their budgets. Businesses should revise their financial forecasts.
Latvian operators fear a decline in revenue
The Latvian Licensed Gambling Operators Association (LLAB) has expressed its disappointment regarding the ‘unplanned and uncoordinated policy’. Liga Līce, LLAB’s executive director, said in an official statement that the tax increase, which is due to come into effect in January 2026, is being introduced without consulting the industry and without taking the interests of investors and operators into account.
Latvia’s budget revenue from slot machines and casinos for the first nine months of this year fell by almost €2 million, from €22.01 million in 2024 to €20.07 million, according to the Lotteries and Gambling Supervision Inspection (IAUI). Taxes from interactive games increased by €1 million, but the Ministry of Finance’s forecast for revenue from the licensed industry is approximately €1 million short.
LLAB questioned the validity of the government’s forecasts, pointing to the decline in the offline market and the decrease in the number of gaming halls. LLAB Executive Director Liga Litsa said that after the rate increase, at least 20 gaming halls could be closed and the number of slot machines reduced. She estimates that tax revenues from this segment will decrease by approximately €2.5 million, from €25 million to €22.5 million, rather than increase as predicted by the Ministry of Finance.
Sports representatives defend sponsors
According to representatives of sports federations, the tax increase could reduce sponsorship support, which is a key source of funding for national leagues and teams. Bookmakers are the title sponsors of Latvia’s top men’s hockey, basketball and football leagues.
In particular, Optibet is the general sponsor of the Latvian Hockey League and the title sponsor of the Latvian-Estonian Basketball League. A reduction in operators’ marketing and sponsorship expenses could jeopardise long-term contracts with sports organisations and complicate the financing of championships and federations.
Roberts Pļavejs, Secretary General of the Latvian Hockey Federation (LHF), told Baltic Football News that no official changes to sponsorship contracts have been announced yet, but legislative amendments could affect the situation. According to him, the federation is already in talks with representatives of the gambling sector as part of a separate process related to advertising regulation.
Pļavejs also warned of a broader crisis in sports funding: ‘We and our private sponsors fully fund the Latvian Hockey Championship. Without a general sponsor, the organisation would be complicated. And this problem affects not only us, but also other leagues and national teams.’
This article was first published in Russian on 4 December 2025.
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