Latvia to fastrack gambling tax hike

The Latvian government has announced plans to bring forward its planned gambling tax increases by 12 months to 1 January 2026.

As confirmed by draft legislation, the tax increases were originally scheduled to commence on New Year’s Day 2027, under plans approved in December 2024. However, the timeline has been shortened following a broader spending review by ministers last month.

The government is also accelerating plans to close down the country’s Lottery and Gambling Supervision Inspectorate (IAUI). The regulator will be consolidated into Latvia’s State Revenue Service (SRS) on 1 April – three months earlier than initially expected.

Latvia gambling tax hiked to 18%

From 1 January, Latvia’s gambling taxes on interactive gambling and telephone-based betting revenues will increase from 12% to 15% of GGR and 15% to 18% respectively.

Annual gaming machine taxes will rise from €6,204 to €7,440. Meanwhile, contributions on roulette, card and craps tables will increase from €33,696 to €40,440 per year.

The Ministry of Finance estimates that Latvia’s gambling tax increases will raise €9.2 million. Of that total, €175,000 will be handed to municipalities, with the rest to be pumped into the state budget.

Cost savings

Meanwhile, according to Finance Minister Arvils Ašeradens, the earlier-than-planned closure of IAUA will bring several benefits, including administrative cost savings.

Until the start of April, Latvia’s gambling industry will continue to be overseen by two regulators. The IAUI focuses on regulatory compliance and oversees licensing matters, while the SRS is responsible for tax issues.

However, their responsibilities overlap in several areas. Both have the power to enforce sanctions, conduct investigations and implement anti-money laundering measures.

“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,” Ašeradens said.

Spending review

The decisions on gambling taxes and regulation were taken following a government cabinet meeting in late August. Ministers at the meeting discussed the state budget and spending plans across various areas through to 2029.

The government is trying to raise €565 million in additional funds for security, family support and education in the budget for 2026.

A package of draft laws relating to the budget – including the gambling tax increases – will be submitted to Latvia’s parliament for approval on 15 October.

 Latvia’s gambling tax rate will rise to 15% for iGaming and 18% for telephone betting. The current gambling regulator will also be absored into the government tax arm.