Latvia Approves Amendments To Gambling Laws, Municipalities To Get 5 Percent Of Gambling Revenue

Latvia Approves Amendments To Gambling Laws, Municipalities To Get 5 Percent Of Gambling Revenue

Latvia has approved changes to the existing regulations on Lotteries and Gambling Fee and Tax. Following the amendment, the revenue share between the state and the municipalities is to be restructured.

According to the country’s Finance Ministry, the amendments were aimed at shifting the tax burden from labor to consumption and capital

Currently, the state takes 75 percent of the revenue from gambling while the municipalities take the remaining 25 percent. However, with the new laws in place, the state would take 95 percent of the revenue while the municipalities which host the gambling facilities will get only 5 percent.

The new amendments also confer that the gambling tax on each roulette, card game, dice game table will increase from EUR 23,400 to EUR 28,080 next year.

The annual gambling tax on the gaming machine will also be increased from EUR 4,164 to EUR 5,172.

Earlier in April, the parliament in Latvia favored the proposals seeking changes to the existing national legislation on gambling.

The gambling market in Latvia has been expanding. According to the figures published by the national regulator the Lotteries and Gambling Supervisory Inspection (IAUI), the gambling revenue for the first six months of 2019 has jumped 4.7% year-on-year to €154.5m (£142.0m/$172.1m).

During the same period the previous year, the Latvian regulated gambling market generated €134.6m only. Moreover, the first half of 2019 also saw a jump in the profits from €99.9m to €111.5m, representing a 15 percent year-on-year increase.

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