Latvian Gambling Industry Forecasts Venue Closures Following Accelerated Tax Hike
The Latvian gambling sector is facing a new period of economic uncertainty as the government moves to implement significant tax increases starting in 2026. This fiscal adjustment, which affects both land-based and online operators, has drawn sharp criticism from the industry’s main representative body, which warns that the measure will be counterproductive and lead to the closure of multiple gaming halls.
Planned Tax Increases
From 2026, Latvia’s Ministry of Finance intends to raise several gambling-related taxes. The annual fee for physical gaming machines is set to rise from €6,204 to €7,440, while table games such as roulette, cards, and dice will be taxed at €40,440 per year, up from €33,696.
Revenue-based taxes will also increase, with telephone-based games, betting, and wagering moving from 15 to 18 per cent, bingo from 10 to 12 per cent, and online gambling from 12 to 15 per cent.
The ministry estimates that the changes will generate an additional €9.2m annually, with €9m directed to the national budget and €175,000 allocated to local governments.
Industry Concerns Over Closures
The Association of Latvian Licensed Gambling Operators (LLAB) has warned that the government’s projections may not reflect reality. It pointed to the example of the Netherlands, where a tax increase reportedly led players to reduce gambling activity or turn to unregulated markets, resulting in lower overall revenues.
According to LLAB, Latvia could face similar consequences, including the closure of more than 20 gaming halls and 10 tables, which could cut tax income by €2.5m. The group highlighted that a 20 per cent tax rise in early 2024 had already forced the closure of 24 gambling halls.
The long-term trend also shows contraction. In 2005, Latvia had 327 gambling halls, compared to just 168 by mid-2025. The number of slot machines fell from 4,916 to 4,037 since early 2024, while revenue from machines declined 12 per cent to €55m in the first half of 2025.
Industry Response
Juris Celmārs, chairman of SIA Olympic Casino Latvia, criticised the government’s projections:
“By raising the tax rates on gaming halls and machines, the promised budget increase will not occur. On the contrary, budget revenue will decrease.”
“Not only are the principles of good governance not followed, but misleading forecasts have been made about the impact of tax changes on budget revenues. They were made without taking into account market rules and trends: a decrease in the turnover of the land-based segment and a significant drop in the number of gambling halls.”