Next year, changes will occur in the oversight of the licensed gambling sector, which may signify a new approach from the supervisory authority and lead to changes in the industry, said Liga Lice, the executive director of the Licensed Gambling Association of Latvia (LLAB), to the LETA agency.
She indicated that changes are expected in the oversight of the industry next year, as the Lottery and Gambling Supervision Inspection will come under the jurisdiction of the State Revenue Service (SRS), which may mean a new perspective from the supervisory authority and, consequently, changes for the industry.
Lice expressed hope that this will allow for the implementation of more effective solutions for data and information exchange, reducing bureaucracy, including the preparation of various reports, which currently requires significant resources from the industry. LLAB is ready for constructive cooperation with the SRS, representing the interests of the industry and expressing confidence that only by ensuring balanced regulatory oversight can the licensed sector compete with the illegal sector.
She also noted that the association will continue to clarify to regulatory authorities and the public what risks exist from unlicensed operators and how important it is to have access to responsible gaming tools, including the self-exclusion register, which is not available with illegal operators. The illegal sector is associated with high risks of financial and data fraud.
At the same time, LLAB will continue to represent the interests of its members regarding the operation of land-based gaming halls and unlawful decisions by local governments, as well as continue to raise issues of fair competition.
Lice indicated that the main challenge in 2026 will still be the shadow economy, the share of which may increase. This will be facilitated by the unplanned tax increases approved by the Saeima, as well as the regulation of personal income tax (PIT), restrictions on the introduction of new products, and a complete advertising ban that will be in effect at least until April of next year.
Latvia is the only country where PIT is levied not only on winnings but also on losses. The more money a player decides to spend on entertainment, the less advantageous it is for them to choose legal operators. As a result, even the wealthiest clients choose illegal operators, she noted.
Furthermore, according to Lice, licensed operators have limited opportunities to introduce new products and games, while the illegal market's offerings are unrestricted and dynamic, attracting players with new products.
For the legal market, the state has maximally restricted payment methods — only a bank account opened in a credit institution registered in Latvia is allowed, depriving the possibility of using accounts opened in credit institutions, payment or electronic money institutions registered in other European Union (EU) countries. Such restrictions contradict the fundamental freedoms enshrined in EU law and significantly limit the competitiveness of licensed gambling organizers in Latvia, Lice emphasized.
Lice noted that LLAB predicts that several land-based gaming halls will close in 2026, and the online sector is likely to experience stagnation.
LLAB unites 10 licensed gambling organizers in Latvia, including SIA "PAF Latvija", SIA "Viensviens", SIA "Latsson Licensing", SIA "Optibet", SIA "Laimz", SIA "Klondaika", SIA "Alfor", SIA "Olybet Latvia", SIA "Olimpic Casino Latvia", and SIA "Tonybet".
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