The Association of Licensed Gambling Operators in Latvia (LLAB) has raised strong objections to the government’s plan to bring forward gambling tax increases to January 2026 a full year earlier than originally scheduled. The changes would lift the tax on interactive gambling from 12% to 15% of gross gaming revenue (GGR) and raise annual machine and table fees to €7,440 and €40,440 respectively.
According to the Ministry of Finance, these increases would generate an additional €9.2 million in revenue. However, the LLAB warns that the opposite could occur. The organization predicts more than 20 gaming halls and 10 table game venues may close, creating a tax shortfall of approximately €2.5 million. LLAB representatives argue that the government’s calculations overlook current market trends, such as a 12% decline in slot and table revenues in the first half of 2025 and a 70% reduction in venue numbers over the past two decades.
The trade body also highlighted that a 20% tax increase earlier in 2024 already led to the closure of 24 gambling halls. Chairman Juris Celmārs of SIA Olympic Casino Latvia stated that higher tax rates will “decrease, not increase” budget revenues.
Latvia’s parliament is scheduled to review the proposal on October 15 as part of the 2026 budget debate. With neighboring markets like the Netherlands also reporting reduced revenue following similar tax hikes, the outcome of this decision may set an important precedent for European gambling policy in 2026 and beyond.
