Latvia announced a regulatory restructuring this week, officially incorporating the Lottery and Gambling Supervisory Inspection into the State Revenue Service. This reform, effective from April 1, 2026, aims to streamline administrative processes and enhance regulatory efficiency. The Ministry of Finance stated that this integration is to reduce bureaucratic fragmentation, bringing gambling and lottery industry regulation under a unified tax and supervision management system. In plain terms, it means putting the licensing and tax collection teams together in one office to handle audits and violations simultaneously. The Ministry of Finance emphasized that merging tax collection with regulation will enhance the ability to identify financial and legal risks. The Cabinet approved this reform in October 2025 and included it in Latvia's 2026 budget.
New Structure and Personnel Adjustments
As part of the merger, the supervisory and control functions of the IAUI will be split into two new units under the Non-Financial Sector Regulation Department of the State Revenue Service. The tax office has absorbed 21 staff positions. This adjustment means that gambling operators will face fewer government departments in the future, but the penetration of regulation might be stronger—tax data and operational data are directly compared within the same system, making it harder to hide violations.
Synchronized Tax Increase: Online Gaming, Gambling, and Bingo Rates All Raised
This regulatory restructuring coincides with a tax increase effective from January 1. The tax rate for interactive gaming services has been raised from 12% of GGR to 15%, the gambling tax from 15% to 18%, and the bingo tax from 10% to 12%. Additionally, the fixed annual fees for gaming machines and table games have also been increased. The Ministry of Finance expects these measures to generate an additional 9.2 million euros in revenue, of which about 175,000 euros will be allocated to local governments. However, the Latvian Licensed Gambling Operators Association opposes this, warning that the tax increase could lead to a decrease in tax revenue and potentially cause the closure of over 20 gambling venues nationwide. The pain of tax increases combined with regulatory integration may be difficult to avoid in the short term. For more updates on European gambling regulation, continue to follow PASA official website.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel: https://t.me/pasa_news
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