Increased Gambling Revenues Reach EUR 161 Million in Lithuania
In the first nine months of 2023, Lithuania's gaming industry has shown encouraging signs of growth, according to the Lithuanian Gaming Authority. The overall gross gaming revenues reached 161 million euros, marking a significant increase compared to the same period in 2022.
The iGaming market, which includes online casino, slots, table games, and sports betting, has been a major driver of this growth. While specific sector-wise revenue breakdowns for 2023 are not available, the expansion momentum in the Baltic region suggests that online slots and sports betting are likely significant contributors.
The online gaming sector generated 107 million euros, representing a 24.4 percent increase from the previous year. This growth aligns with the strong expansion momentum observed in the iGaming market post-2020, with regulated gambling revenue in the Baltic region having previously jumped by 84 percent year-on-year.
The lottery sector also saw positive developments, with the land-based sector generating 46.3 million euros, a 15.5 percent increase compared to the previous year. This growth is reinforced by IGT extending a long-term lottery deal in Lithuania in 2024, indicating a positive outlook for the lottery sector.
Land-based sports betting revenues, however, have decreased by 10.5 percent, generating 6.8 million euros. Table game revenues in the land-based sector have also decreased by 3.2 percent, generating 12.9 million euros. Despite these decreases, the land-based gaming sector saw a slight increase of 0.4 percent to 54 million euros.
Notably, revenues from table games increased by 63 percent to 8.8 million euros. This growth could be attributed to the recovery and growth in land-based and mobile gaming segments since 2021.
In July 2023, Lithuanian authorities investigated the gaming provider Betsafe for offering a game without a necessary license. However, Betsafe avoided a penalty by fully cooperating with authorities and offering the game for only two days without generating any profits.
Meanwhile, the provider Baltic Bet received a mild penalty of 16,700 euros for actively promoting gambling participation on its website in mid-2023.
In summary, Lithuania's gaming revenue in 2023 is expected to show robust growth, particularly in the online and lottery segments. While specific sector-wise revenue breakdowns for 2023 are not available, the expansion momentum in the Baltic region suggests that online slots and sports betting are likely significant contributors. The lottery sector is also expected to see steady to strong growth, similar to European peers. Land-based sports betting and table game revenues, however, have shown a decrease compared to the previous year.
In contrast to Lithuania's growing gaming industry, online casinos in Germany might face financial challenges, as stricter regulations have been proposed, causing uncertainty within the casino-and-gambling sector. General news reports suggest that these potential regulations could lead to a decline in revenue for online casinos in Germany.
As the online gaming sector in Lithuania continues to thrive, it presents an intriguing opportunity for European countries, such as Germany, to learn from its success and potentially apply similar strategies to boost their own casino-and-gambling industries. Such strategies could include implementing effective regulatory frameworks that promote growth, ensuring consumer protection, and addressing problem gambling.
