A working group formed by Lithuania's three governing parties has agreed that gambling should face a progressive tax, advancing a budget proposal without setting rates or passing legislation.
Tomas Tomilinas, who chairs the Seimas Social Affairs and Labour Committee, described the agreement after the group's meeting on 5 November. He estimated that the measure could bring about €36m ($40.4m) in additional budget revenue. The figure is a projection, rather than money already approved or collected.
The group includes representatives of the Social Democrats, the Lithuanian Farmers, Greens and Christian Families Union and the Democrats. Tomilinas said the Finance Ministry was finishing its opinion on a bill he and colleagues had submitted, but numerical tax bands and rates still needed to be inserted into the model.
The working-group agreement is a political step in the 2027 budget negotiations. Any change to the tax itself would still need a final legislative text and parliamentary approval.
The discussions on Thursday addressed possible sources of additional revenue, with spending proposals expected to be considered the following week.
Lithuania currently applies a 22% gambling tax to the amount operators retain after paying player winnings, according to the State Tax Inspectorate.
The rate covers gaming machines, casino tables, bingo, totalisator betting, sports betting and remote gambling. It rose from 20% at the start of 2025. Lottery ticket sales are taxed separately at 18% of their nominal value.
That difference is material because the coalition's earlier revenue discussions covered both gambling and lotteries. The latest working-group agreement, as described by Tomilinas, concerned progressive taxation of gambling. It did not establish a new lottery rate.
Tomilinas has previously proposed a tiered gambling tax structure, but the figures in that earlier draft should not be treated as the rates now accepted by the coalition. The Finance Ministry's current opinion and the final figures remain outstanding.
The negotiations are taking place against a projected general government deficit of 3.8% of GDP in Lithuania's draft 2027 budget. Coalition parties are examining additional revenue measures while deciding what changes to make before the budget is settled.
The proposed €36m yield will depend on the eventual tax design and its passage through Parliament.
On 29 October, Lithuania's coalition was still considering higher gambling and lottery taxes as part of a broader European budget debate. The working-group agreement now gives the gambling proposal a more defined direction, while leaving the rates unresolved.
The coalition working group discussed revenue measures on 5 November and expects to turn to spending proposals the following week
