Raising the tax on gambling machines will reduce budget revenue, said Latvian association

“By increasing the tax rates for gaming halls and slot machines, the promised budget increase will not happen; on the contrary, budget revenue will decrease,” says Juris Celmārs, a representative of the Latvian Licensed Gambling Association (LLAB), Chairman of the Board of SIA Olympic Casino Latvia.

LLAB predicts that with the increase in tax rates, more than 20 gaming halls and 10 card or roulette tables could be closed in 2026. This means that tax revenue in this segment will decrease by approximately 2.5 million euros, instead of increasing, as predicted by the Ministry of Finance. This year, the state budget was planned to receive 25 million euros from the tax on slot machines; by increasing the tax rate, these revenues will decrease to 22.5 million euros.

The tax on gambling halls and slot machines was recently increased by 20%, at the beginning of 2024, as a result of which 24 gambling halls have been closed since 2024. In total, over the past 20 years, the number of gambling halls in Latvia has decreased by more than 70% - from 327 halls in 2005 to 168 in June of this year.

LLAB points out that a new increase in tax rates from January 2026 is being implemented without any consultations with the industry and without taking into account investors and entrepreneurs. As a result, not only are the principles of good governance not followed, but misleading forecasts have also 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 turnover in the land-based segment and a significant drop in the number of gambling halls.

Along with the decrease in the number of gambling halls, the number of slot machines is also consistently decreasing. On January 1, 2024, a total of 4,916 gaming machines were registered in Latvia, but as of September 1, 2025, the number of gaming machines registered in Latvia has decreased to 4,037 – in just under two years, the number of gaming machines has decreased by 879 machines. Over a 20-year period, this decrease is even greater, corresponding to the decrease in the number of gaming halls.

The revenue of land-based gaming operators is also decreasing, as players are increasingly choosing interactive gaming entertainment. Revenue from gaming machines has decreased by 12% in the first half of this year, in the first half of 2024 they were 62.5 million euros, but in the first half of 2025 – 55 million. Revenue from gaming tables (roulette, cards) has also decreased from 5.4 million euros last year to 4.7 million euros. euros in the first half of this year, a decrease of 12.5%.

About LLAB

The Association of Licensed Gambling Operators in Latvia unites 11 gambling operators that have received a license to organize gambling in Latvia – both interactive gambling operators and land-based gaming hall and casino operators. LLAB members are SIA PAF Latvija (Pafbet), SIA Viensviens (11.lv), SIA Latsson Licensing (Betsafe), SIA Optibet, SIA Laimz, SIA Klondaika, SIA Alfor, SIA Olybet Latvia, SIA Olimpic Casino Latvia, SIA Tonybet and SIA LVBet.

The goal of LLAB is to represent the industry by maintaining constructive communication with state authorities, to provide a unified opinion and proposals in legislative processes. LLAB represents the interests of the industry and advocates for a responsible gaming environment, balanced industry regulation that does not contribute to the shadow economy in the industry, as well as fair competition.

For additional information: info@llab.lv, Līga Līce, tel. 29192972