Industry warns tax rise will close more gaming halls in Latvia
An industry group says the government’s plans will be counterproductive, leading to a decline in budget revenue.
Latvia.- An industry group has heavily criticised plans for increases to gambling tax in Latvia. The Association of Latvian Licensed Gambling Operators (LLAB) says the moves could lead to a drop in tax revenue collected by provoking the closure of more than 20 gambling venues.
Finance minister Arvils Ašeraden has said that from 2026 the annual fee for physical gaming machines will rise from €6,204 to €7,440. Table games such as roulette, cards, and dice will be taxed at €40,440 a year , up from €33,696.
Revenue-based taxes will also increase. Telephone-based games, betting, and wagering will be taxed at 18 per cent (up from 15 per cent), bingo at 12 per cent (previously 10 per cent), and online gambling at 15 per cent (up from 12 per cent).
The Ministry of Finance says the changes will yield an extra €9.2m, with €9m to go to the national budget and €175,000 allocated to local governments. However, the LLAB warns that this might not be the case. The recent case of a gambling tax rise in the Netherlands has shown how this can happen if players respond to changes by wagering less or seeking alternatives on the unregulated market.
LLAB forecasts that worse than this, the tax increase could directly harm the viability of 20 gaming halls and 10 card or roulette tables, claiming that these could close next year as a result, leading to a potential tax loss of €2.5m. The body said the last tax rise of around 20 per cent in early 2024 provoked the closure of 24 gambling halls.
LLAB added that there has been a gradual long-term trend of closures, with the number of gambling halls in Latvia dropping from 327 in 2005 to 168 as of mid-2025. The number of slot machines has dropped from 4,916 machines to 4,037 since the start of 2024, while machine revenue declined by 12 per cent to €55m in the first half of 2025
Juris Celmārs, chairman of SIA Olympic Casino Latvia, said: “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.”
