Latvia accelerates gambling tax hikes to strengthen fiscal stability and support national priorities.
The Latvian government has announced that gambling tax increases will take effect from 1 January 2026, bringing forward reforms originally scheduled for 2027. The changes form part of a broader fiscal consolidation package aimed at boosting state revenues and ensuring stable funding for key priorities such as security, education, and family support programs.
Under the revised plan, slot machine taxes will rise from €6,204 to €7,440 per unit annually, while roulette, card, and dice tables will increase from €33,696 to €40,440. Revenue-based taxes are also being adjusted: telephone-based gambling and betting will rise from 15% to 18%, bingo from 10% to 12%, and interactive gambling from 12% to 15%.
The Ministry of Finance projects that these measures will yield €9.2m in 2026, with €9.025m directed to the state budget and €175,000 to municipalities. In addition, the government has allocated €565.5m in special funding for 2026, covering security (€320.3m), education (€45m), family programs (€94.8m), and other priorities (€105.4m).
Alongside tax increases, Latvia is restructuring regulatory oversight. The Independent Authority for the Supervision of Lotteries and Gambling (IAUA) will be closed earlier than planned, consolidating oversight within the State Revenue Service. This move is expected to cut costs, reduce administrative overlap, and improve efficiency.
Finance Minister Arvils Ašeradens stated that the accelerated changes reflect the government’s commitment to fiscal responsibility while maintaining stable funding for social and security priorities.
The decision underscores expectations placed on the gambling sector to contribute more significantly to public finances and aligns Latvia with broader European trends toward higher gambling taxation and more streamlined regulatory frameworks.
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