Lithuanian parliament strengthens online gambling regulations
In an effort to curb illegal online gambling, the Seimas passes stricter laws on payment blocks and gambling protections.
Lithuania.- In a decisive move to combat illegal online gambling, Lithuania’s Seimas (Parliament) has passed new amendments to its Gambling and Lottery laws, aiming to enhance protection for gamblers and improve measures against illegal remote gambling operations. The legislative changes were approved by 113 parliamentarians and will come into effect on May 1, 2025.
The new rules impose stricter obligations on financial institutions, requiring them to block payments made to illegal gambling operators. Banks and other payment service providers must now monitor transactions to ensure that payments go only to legal entities authorised by the Gambling Supervision Service. A publicly available list of licensed gambling and lottery operators will help identify which companies are allowed to operate in the country.
These amendments also address the issue of illegal online lotteries, requiring payment transactions related to lottery tickets to be verified against the list of licensed entities. The authorities believe that by blocking payment transactions to unlicensed operators, participation in illegal gambling can be significantly reduced.
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Since 2016, Lithuania has already blocked over 1,600 illegal gambling websites. However, officials acknowledge that the current system for blocking transactions has not been fully effective. The new regulations are expected to provide a more robust framework for curbing illegal online gambling activities.
Additionally, the government highlighted the significant financial impact of illegal gambling, noting that in 2021, the illegal online gambling market in Lithuania accounted for 15 per cent of the total market, equating to more than €18m. The uncollected tax revenue from these activities was estimated at around €2m.
The amendments also introduce penalties for those found violating the new payment blocking requirements, with fines ranging from €1,800 to €3,800 for first offences, and up to €6,000 for repeated violations. These moves are part of a broader strategy to protect consumers and improve the integrity of Lithuania’s gambling market.
