Latvia to fast-track gambling tax hike

Summary

The Latvian government has brought forward planned gambling tax increases so they take effect on 1 January 2026, a year earlier than originally scheduled. Interactive iGaming tax will rise from 12% to 15% of gross gaming revenue (GGR), while telephone betting tax will increase from 15% to 18% of GGR. Annual gaming machine and table contribution rates are also being raised.

Additionally, the Lottery and Gambling Supervision Inspectorate (IAUI) will be absorbed into the State Revenue Service (SRS) on 1 April 2026 — three months earlier than planned — as part of wider spending-review measures intended to save administrative costs and streamline enforcement and tax oversight. The Ministry of Finance estimates the tax changes will generate about €9.2m for the state, with €175,000 allocated to municipalities. Draft budget laws including these measures are due to be submitted to Parliament on 15 October.

Key Points

Tax rates for interactive gambling increase from 12% to 15% of GGR from 1 January 2026.
Telephone betting tax rises from 15% to 18% of GGR on the same date.
Annual gaming machine tax increases from €6,204 to €7,440; table contributions (roulette, card, craps) rise from €33,696 to €40,440 per year.
The IAUI regulator will be consolidated into Latvia’s State Revenue Service on 1 April 2026, accelerating earlier plans for integration.
The Finance Ministry expects the measures to raise ~€9.2m for 2026, supporting wider budget aims following a government spending review.

Why should I read this?

Quick heads-up — if you run or serve players in Latvia this changes margins, compliance and who you deal with. Taxes bite from New Year, regulator moves in April, and Parliament sees the draft on 15 October. We skimmed the paperwork so you don’t have to.

Context and relevance

These measures form part of a broader government effort to boost revenue for security, family support and education in the 2026 budget. Faster implementation of tax hikes and regulator consolidation follows a cabinet spending review and mirrors a regional trend of tighter fiscal oversight in gambling markets. Operators should expect higher operating costs, potential shifts in enforcement approach under SRS, and the need to adjust pricing, compliance workflows and reporting ahead of the effective dates.

Source

Source: https://igamingbusiness.com/finance/tax/latvia-gambling-tax-hike-brought-forward/