Latvia has announced a significant overhaul of its gambling regulation, integrating the Lottery and Gambling Supervision Inspectorate into the State Revenue Service. This reform is aimed at improving efficiency and reducing bureaucratic fragmentation. Additionally, new tax rates will take effect, impacting various gambling segments and projected to generate substantial revenue.
This week, Latvia revealed an ambitious regulatory overhaul affecting its gambling industry. The Lottery and Gambling Supervision Inspectorate (IAUI) will now be integrated into the State Revenue Service (SRS), a move that aims to streamline administrative tasks and enhance supervisory efficiency.
The reform comes after the Cabinet approved the changes in October 2025, with implementation set for 1 April 2026. This restructuring follows recent tax hikes introduced in January. The Ministry of Finance has stated that this reorganization intends to minimize bureaucratic fragmentation while strengthening the overall oversight of the gambling and lottery sectors.
By consolidating tax and regulatory functions under one umbrella, officials believe they will be better equipped to identify financial and legal risks within the industry.
As part of this integration, the supervisory and control responsibilities previously held by the IAUI will be divided between two new units within the SRS’s Non-Financial Sector Supervision Department. This merger will also see the SRS absorb 21 staff positions from the IAUI, further consolidating resources.
The regulatory changes coincide with significant tax increases that took effect on 1 January 2026. Notably, the tax rate on interactive gambling services will rise from 12% to 15% of gross gaming revenue (GGR). Meanwhile, betting taxes will escalate from 15% to 18%, and bingo taxes will climb from 10% to 12%.
In addition to these rate hikes, fixed annual charges for gaming machines and table games have been adjusted upwards. The Ministry of Finance estimates that these combined measures could yield an additional €9.2 million in revenue for the state, including approximately €175,000 earmarked for local governments.
However, the Association of Licensed Gambling Operators in Latvia (LLAB) has expressed concerns regarding these tax increases, warning that they could lead to a significant decline in tax revenue. There are fears that over 20 gambling venues may close as a result of these changes, which could have lasting impacts on the local economy.
The regulatory landscape for gambling in Latvia is undergoing significant changes, reflecting broader trends in the industry as authorities seek to improve oversight and financial returns.
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