The Latvian government has confirmed that gambling tax increases will take effect on 1 January 2026, a full year earlier than originally planned.
The decision, included in draft legislation, follows a comprehensive spending review by ministers last month and forms part of broader fiscal consolidation measures.
Under the revised plan, the annual gambling machine tax will rise from β¬6,204 to β¬7,440. Taxes on roulette, card, and dice tables will increase from β¬33,696 to β¬40,440 per table per year.
The government will also adjust rates for gambling revenue taxes: telephone-based gambling and betting will move from 15% to 18%, bingo from 10% to 12%, and interactive gambling from 12% to 15%.
The Ministry of Finance projects these measures will generate an additional β¬9.2m in 2026, of which β¬9.025m will be directed to the state budget and β¬175,000 to municipalities.
Special funding of β¬565.5m will be added to the 2026 budget, with β¬320.3m earmarked for security, β¬45m for education, β¬94.8m for family support programs, and β¬105.4m for other priority measures.
Most of this funding will come from expenditure reductions, though the tax adjustments will provide additional revenue.
The draft 2026 state budget and accompanying fiscal plan are scheduled for cabinet approval on 14 October, with submission to parliament planned for the following day.
Expedited changes to improve gaming oversight
Finance Minister Arvils AΕ‘eradens has stated that the accelerated tax increases, along with the earlier-than-planned closure of the Independent Authority for the Supervision of Lotteries and Gambling (IAUA), will help streamline administration and reduce costs.
Currently, Latvia’s gambling industry is jointly regulated by the IAUI and the State Revenue Service (SRS). While the IAUI handles licensing and compliance, the SRS oversees taxation.
Both authorities maintain overlapping responsibilities, including sanction enforcement, investigations, and anti-money laundering controls.
This regulatory overlap has been cited as a conundrum for operators and policymakers, and the transition to a single oversight structure is expected to improve efficiency.
The tax revisions come at a time when Latvia is seeking to strengthen fiscal discipline while ensuring that social and security priorities receive stable funding.
The decision illustrates expectations placed on the gambling sector to contribute more to public finances, aligning with broader European trends to increase oversight and taxation in the industry.
