Latvia Accelerates Gambling Tax Increases and Regulatory Consolidation
In a decisive move, Latvia is set to implement its gambling tax increases earlier than planned, with the new rates taking effect from 1 January 2026. The government is also streamlining its regulatory oversight by merging the existing Latvian Lottery and Gambling Supervision Inspectorate into the State Revenue Service (SRS).
Originally, these tax hikes were scheduled for 1 January 2027, as per the legislation approved in December 2024. However, following a comprehensive spending review last month, authorities decided to bring forward these changes by a year to bolster revenue and improve efficiency.
The consolidation of regulatory bodies will happen sooner as well. The IAUI, responsible for licensing and compliance, will be integrated into the SRS on 1 April, three months ahead of schedule. This move aims to eliminate redundancies, enhance coordination, and reduce administrative costs.
Starting January, Latvia’s gambling tax on online and telephone betting will increase from 12% to 15% of gross gaming revenue (GGR), while taxes on telephone-based betting will rise from 15% to 18%. Additionally, taxes on gaming machines will go up from €6,204 to €7,440 annually, and contributions on roulette, card, and craps tables will rise from €33,696 to €40,440 per year.
The Ministry of Finance projects that these changes will generate approximately €9.2 million in additional revenue. Of this total, €175,000 will be directed to local municipalities, with the remaining funds allocated to the national budget.
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According to Finance Minister Arvils Ašeradens, the earlier consolidation of the regulatory agencies will yield significant benefits, notably cost savings and more efficient resource use. “The integration of gambling oversight into the SRS will allow us to establish unified management faster, make better use of our resources and deliver higher-quality services to the public,” he stated.
This decision follows a government cabinet meeting in late August, where ministers discussed the nation’s budget and funding strategies extending through 2029. The government aims to raise an additional €565 million for key sectors such as security, family support, and education in the 2026 budget.
A series of draft laws, including those related to the gambling tax increases, will be presented to Latvia’s Parliament for approval on 15 October. Latvia Gambling Tax
