Lithuania’s Gambling Reforms Hit Roadblock After EU Court Ruling
Lithuania’s efforts to tighten online gambling regulations have encountered an unexpected obstacle. The Court of Justice of the European Union (CJEU) has ruled that key amendments to the country’s gambling laws are unenforceable due to procedural violations.
Lithuanian Legislators Failed to Notify the EU
The case stems from a dispute between online gambling operator Unigames and Lithuania’s Gambling Supervisory Authority.
The CJEU determined that Lithuania failed to notify the European Commission about its 2021 gambling law amendments.
This oversight violated EU Directive 2015/1535, which requires member states to report new technical regulations before enforcement.
The court stated:
“A breach of the notification obligation… constitutes a substantial procedural defect… and renders those technical regulations… unenforceable against individuals.”
The disputed amendment expanded advertising restrictions to cover “any form and by any means” of gambling promotion.
Under this rule, regulators fined Unigames €12,662 ($13,860) for website content that allegedly encouraged gambling participation.
However, since Lithuania failed to comply with EU procedures, the updated regulations cannot be enforced.
Impact on Lithuania’s Gambling Policies
The Supreme Administrative Court of Lithuania must now review the CJEU ruling when deciding whether to overturn Unigames’ fine.
This could set a precedent affecting other enforcement actions based on the contested amendments.
The ruling arrives at a critical moment for Lithuania’s gambling sector. The government has recently introduced several restrictive measures, including:
- Blocking ads from unauthorized gambling operators
- Prohibiting credit and debit card payments to unlicensed gambling sites
- Raising the legal gambling age to 21
- Introducing new licensing fees for operators in 2024
- Imposing a full ban on gambling advertising, set to take effect in July 2025
The recent €8.4 million ($9.2 million) fine imposed on Olympic Casino Group Baltija over an embezzlement scandal underscores the country’s tough stance on gambling regulation.
However, the CJEU ruling casts doubt on whether Lithuania can continue enforcing these restrictions without addressing procedural missteps.
What’s Next for Lithuania’s Gambling Regulations?
To maintain its regulatory push, Lithuania may need to revisit its legislative process and ensure compliance with EU notification requirements.
Without proper alignment with EU law, further attempts to strengthen gambling regulations could face similar legal challenges. The government’s next steps will likely determine the future effectiveness of its gambling reforms.