The Latvian Government has approved regulations transferring the functions of the Lottery and Gambling Supervisory Inspection (IAUI) to the State Revenue Service (VID) from 1 April this year.
Until now, the gambling sector in Latvia has been overseen by the two agencies under the Ministry of Finance. The IAUI ensured compliance with gambling regulations, licensed operators and monitored their activities. Meanwhile, VID handled tax administration and control for gambling operators.
The move aims to integrate supervision of the gambling sector with tax administration and financial oversight.
According to the Ministry of Finance, it will allow VID to use its data more effectively, reduce administrative fragmentation and promote a more coordinated approach to industry oversight.
The Ministry emphasised that the changes do not alter the content of industry regulations. The accompanying amendments have been prepared to prevent any disruption to the agency’s operations during the reorganisation.
At the start of this year, Latvia increased gambling taxes. The general gambling tax rate rose from 15% to 18%. Taxes on interactive gambling revenue were raised from 12% to 15%, while telephone-based gambling taxes also increased from 15% to 18%.
The tax changes are a response to fiscal pressures highlighted in Latvia’s 2025 Progress Report on the Fiscal-Structural Plan for 2025-2028.
In neighbouring Lithuania, Prime Minister Inga Ruginienė has reaffirmed the Government’s plans to introduce loss limits to protect individuals affected by gambling-related harm.
A centralised system will record all gambling activity, allowing regulators and operators to monitor and control risks
Latvia's Ministry of Finance estimates the recent gambling tax increase will generate an additional €9.2m annually
