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Lithuania proposes lottery tax restructuring from 2027

The proposal would reduce the portion paid directly into the state budget from 18% to 10%, while requiring lottery organisers to allocate at least 8% to eligible support recipients.

2 min read
Lithuania-tax
Key Points
Lottery organisers would retain an overall 18% obligation under the proposed structure 
The Ministry of Finance estimates state budget revenue would fall by around €11.9m annually 
Lithuania previously required lottery organisers to allocate 8% of ticket value to support before the system was changed in 2022

Lithuania's Ministry of Finance has proposed restructuring the country's lottery tax regime from July 2027, shifting part of the existing obligation from direct taxation to mandatory support payments. 

Lottery organisers currently pay an 18% tax on the nominal value of distributed tickets. Under the proposal, 10% would continue to be paid into the state budget, while organisers would be required to allocate at least 8% to eligible support recipients. The overall 18% obligation would therefore remain unchanged.

The Ministry estimates that the change would reduce annual state budget revenue by approximately €11.9m ($14m). Eligible areas for support would include culture, education, sport, healthcare, national security and defence, with lottery organisers selecting recipients.

The proposal would represent a partial return to a funding structure Lithuania previously used. Until July 2022, lottery organisers were required to allocate 8% of the nominal value of distributed tickets to eligible support recipients. That requirement was abolished when Lithuania changed its lottery taxation framework, with the current 18% tax subsequently applying to ticket value.

Oversight under the proposed system would involve the State Tax Inspectorate and the Gambling Supervision Service. Recipients obtaining more than €50,000 would be subject to an audit requirement, while lottery organisers would disclose support payments in explanatory notes accompanying their annual financial statements.

The proposal has not yet secured wider Government backing. The Government Chancellery told BNS that the Ministry's initiative had not been coordinated with Prime Minister Mindaugas Sinkevičius or coalition partners, adding that proposals would require support within the governing majority.

The change is being considered as Lithuania's lottery market continues to expand. Ticket sales reached €167.2m in 2025, up 13% year-on-year, while major lottery organisers paid €29.3m in lottery taxes. In Q1 2026, ticket sales increased another 3.6% to €40.9m, with lottery organisers contributing €8.4m in tax.

In August, the Ministry opposed separate proposals to increase the lottery tax to 25% and raise taxes and licensing fees across the wider gambling sector, arguing that future changes should take operator performance into account.

Good to know

Lithuania's lottery and gambling markets each grew by approximately 13% in 2025, with combined lottery and gambling tax receipts reaching €86.9m

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