The Latvian authorities’s choice to speed up deliberate playing tax will increase by one 12 months has drawn sharp criticism from the nation’s main gaming affiliation. Operators warn that the brand new charges, set to take impact in January 2026, may undermine the state’s personal income projections whereas forcing dozens of venues to close down.
Increased Charges Introduced Ahead
Initially scheduled for 2027, the brand new tax construction will now start on January 1, 2026, after officers introduced the change in September. The Ministry of Finance initiatives the measure will ship a further €9.2 million, with €9 million allotted to the state finances and €175,000 to native municipalities.
The hikes have an effect on a number of classes of playing. Annual taxes for slot machines will enhance from €6,204 to €7,440, whereas expenses on roulette, card, and cube tables will climb from €33,696 to €40,440. Income-based taxation may even rise, with phone betting shifting from 15% to 18%, on-line playing from 12% to fifteen%, and bingo from 10% to 12%.
Finance minister Arvils Ašeraden offered the brand new figures as a part of the 2026 finances bundle, which seeks to lift €565 million in further funding for safety, household assist, and schooling. Parliament is predicted to vote on the bundle in October.
The Affiliation of Licensed Playing Operators in Latvia (LLAB) has strongly objected, arguing that the federal government’s forecasts are unrealistic. The group predicts that increased taxes will drive greater than 20 gaming halls and at the least 10 tables out of enterprise subsequent 12 months, inflicting an estimated shortfall of €2.5 million as a substitute of the excess claimed by the Ministry.
“By elevating the tax charges on gaming halls and machines, the promised finances enhance won’t occur,” mentioned Juris Celmārs, consultant of the LLAB and chairman of SIA Olympic On line casino Latvia, within the regulator’s press launch. “Quite the opposite, finances income will lower.”
LLAB additional criticized the Ministry of Finance for advancing the timetable with out consulting stakeholders. It described the income estimates as “deceptive,” stating they fail to account for declining turnover in the land-based sector and a gradual discount in gaming corridor numbers.
Shrinking Land-Primarily based Market
Trade knowledge helps these issues. The variety of playing halls in Latvia has declined by greater than 70% over 20 years, dropping from 327 in 2005 to simply 168 by mid-2025. Slot machine numbers have additionally decreased, falling from 4,916 initially of 2024 to 4,037 by September 2025.
This contraction has already affected revenues. Land-based slot machine earnings slipped by 12% within the first half of 2025 to €55 million, whereas desk video games comparable to roulette and blackjack recorded a 12.5% year-on-year drop, totaling €4.7 million.
LLAB notes {that a} 20% tax enhance imposed in early 2024 led to the closure of 24 playing halls, a pattern they anticipate will speed up underneath the brand new charges. The affiliation factors to comparable developments overseas, citing knowledge from the Netherlands the place a latest tax rise coincided with a 25% decline in gross gaming income.
Including to the complexity is the Constitutional Courtroom of Latvia’s 2024 ruling that overturned a Riga citywide ban on playing halls. Though the judgment deemed the prohibition unconstitutional, operators say the sector stays fragile after years of regulatory stress.
Regardless of authorities assurances, the business stays cautious. LLAB insists that policymakers have underestimated the long-term penalties of repeated tax hikes, which it argues will additional cut back employment and funding. In 2023, 2,722 folks had been employed throughout Latvia’s 194 amusement arcades, three casinos, one bingo corridor, and 76 betting outlets.
With venue numbers dwindling and working prices rising, many operators say they face the chance of closure quite than growth. “Not solely are the ideas of excellent governance not adopted, however deceptive forecasts have additionally been made concerning the affect of tax adjustments on finances revenues,” mentioned Celmārs.
Whether or not the upper charges will ship the €9.2 million promised stays unsure. For now, Latvia’s playing sector braces for an additional 12 months of contraction as policymakers push ahead with fiscal adjustments that operators argue may do extra hurt than good.
