Latvia to Compensate iGaming Operators for COVID-19 Restrictions
The Latvian government is set to compensate interactive gambling operators after court rulings deemed COVID-19 restrictions unlawful. Operators have collectively filed claims for €7.3 million ($7.5 million) in damages.
Parliament’s Initial Suspension
In March 2020, the Latvian Parliament enacted a law suspending all gambling licenses, including those for interactive gambling, for 63 days.
The Constitutional Court annulled this provision in December 2020, ruling it invalid from its inception. Affected operators are now seeking compensation for financial losses incurred during this period.
Legal Justification and Claims
MP Viktors Valainis (ZZS) justified the suspension by stating that “money should stay within the people’s wallets at this time.”
However, gambling companies contested the decision, leading to favorable administrative court rulings.
One company, Joker LTD, initially sought €160,000 (165,000) and was awarded €107,491 (110,000) at the beginning of 2024.
Six other operators submitted reimbursement claims totaling €7.3 million in late 2024.
Compensation Elements and State’s Approach
Sworn lawyer Lauris Liepa outlined three key elements of the compensation claims: lost profits, the “fall in the value of money,” and legal costs.
Liepa criticized the State’s approach, stating that instead of seeking an early resolution, the government “chose to fight in the courts and lose predictably.”
Initial claims from LLC Alfor and Olympic Casino Latvia were reduced by approximately €203,000 (210,000) and €300,000 (309,000), respectively.
Decisions on the remaining claims are expected by the end of March.