Key Moments:
- Latvia plans to merge its gambling regulator into the State Revenue Service (SRS) effective April 1, 2026
- New gaming tax rates are set to take effect starting January 1, 2026, across several gambling segments
- The Finance Ministry anticipates the updated gambling tax measures to generate approximately €9.2 million
Regulatory Consolidation Announced
Latvia’s government has decided to combine the Izložu un azartspēļu uzraudzības inspekcija (IAUI), the country’s Lottery and Gambling Supervision Inspectorate, with the State Revenue Service (SRS) on April 1, 2026. This move, which was authorized by Prime Minister Evika Siliņa’s cabinet, is scheduled ahead of the original timeline.
Finance Minister Arvils Ašeradens stated during a government briefing: “The integration of gambling oversight into the State Revenue Service will allow us to establish unified management faster, make better use of our resources and deliver higher-quality services to the public.”
Officials explained that this restructuring aims to reduce redundant functions between the two agencies and to centralize licensing, tax collection, enforcement, and supervision of anti-money laundering activities under a single authority.
Significant Tax Adjustments Across Gambling Activities
The state budget for next year introduces notable tax changes for the gambling sector, coming into effect on January 1, 2026. The annual levy for each gaming machine will rise from €6,204 to €7,440. Roulette, card, and dice tables will be taxed €40,440 annually, compared to the prior €33,696 rate.
The government will adjust tax rates on several forms of gambling. Telephone games of chance, betting, and wagers will see their tax rate climb from 15% to 18% of revenue, while bingo moves from 10% to 12%. Interactive gambling will increase from 12% to 15%.
| Gambling Activity | Previous Tax Rate/Levy | New Tax Rate/Levy (from Jan. 1, 2026) |
|---|---|---|
| Gaming Machine (Annual Levy) | €6,204 | €7,440 |
| Roulette, Card, Dice Tables (Annual Levy) | €33,696 | €40,440 |
| Telephone Games of Chance, Betting, Wagers | 15% of revenue | 18% of revenue |
| Bingo | 10% of revenue | 12% of revenue |
| Interactive Gambling | 12% of revenue | 15% of revenue |
Wider Fiscal Changes and Revenue Projections
The Finance Ministry projects that the revised gambling taxes will bring in around €9.2 million. The updated budget also features increased taxation in other sectors, such as higher excise duties on tobacco and alcohol.
Looking ahead, tobacco duties will rise by 5% in both 2026 and 2027, followed by an average 15% hike in 2028, with cigars, cigarillos, and e-liquids excluded from these increases. For alcohol, there will be an addition of €15 per 100 liters of absolute alcohol for spirits from March 2026, with all alcoholic beverages, including beer, facing a 10% increase from March 2028.
The fiscal plan also introduces a 10% excise duty, though officials indicated this could be reconsidered after the October 2026 elections.
Government’s Broader Revenue Strategy
The Latvian government stated that these gambling initiatives are part of a broader revenue approach. The 2026 budget assigns €565 million in new expenditures, including €320 million for security, €94.8 million to support families, and €45 million for education. These disbursements are to be funded through tax increases and spending cuts across ministries.
With the transfer of IAUI responsibilities to the SRS, Latvia expects to consolidate gambling licensing, tax oversight, and compliance functions. Government representatives anticipate that this restructuring will eliminate administrative overlaps and create a more efficient regulatory system ahead of planned fiscal tightening for 2026-27.
- Author
Daniel Williams
