Lithuania’s Finance Ministry has set out a proposed progressive tax on gambling operators’ gross gaming revenue, with a max marginal rate of 36%.
The draft also raises the tax on lottery operators by two percentage points, according to an ELTA report carried by public broadcaster LRT on 11 November.
Under the proposal, the first €3m ($3.3m) of an operator’s annual gross gaming revenue would continue to face the current 22% rate. The portion between €3m and €5m would be taxed at 29%, while revenue above €5m would face 36%.
Each higher rate applies only to the portion above its threshold, so an operator crossing €5m would not pay 36% on all its revenue.
Lottery operators would see their rate increase from 18% to 20%. The draft calls for gambling operators to make provisional tax payments each quarter and recalculate their final liability against total annual revenue after the calendar year. Lottery operators would be assessed on a quarterly tax period.
The Finance Ministry wants the changes to begin on 1 July 2027. For gambling operators, the revised calculation would apply to the third and fourth quarters of 2027 and subsequent periods if the legislation passes.
The ministry said the proposal is intended to increase the sectors’ contribution to the state budget in light of their growth and economic capacity.
The planned increase forms part of a wider tax package under discussion by Lithuania’s governing coalition. The Finance Ministry intends to submit it to the Government alongside a revised 2027 to 2029 budget proposal.
Government consideration and approval by the Seimas remain necessary before the rates can take effect.
According to figures cited by BNS from Lithuania’s Gaming Control Authority, 12 gambling operators generated combined gross gaming revenue of €274.1m in 2025, up from €222.2m in 2023. Lawmaker Tomas Tomilinas has estimated that higher rates could bring in about €36m more for the budget, although this is a projection rather than an official revenue outcome.
The lottery industry has argued that comparing its rate directly with gambling tax overlooks the different bases on which the two taxes are calculated.
On 6 November, the governing coalition’s working group backed the principle of progressive gambling tax without settling the bands. The newly published draft supplies the proposed thresholds and rates for that earlier political agreement.
Lithuania currently taxes gambling on stakes received after player winnings are deducted
