Lithuania to Impose Higher Taxes on Gambling Starting January 2025
Rewritten Article:
A Gambling Shakeup: Lithuanian Parliament Takes Action
Back in April 2024, a dust-up in the Lithuanian Parliament vowed to change the nation's gambling scene. The controversy centered around proposed gambling law amendments, but things took a different twist as MPs debated their way to increased gambling taxes and additional regulations. The revised law officially landed on June 18th, due to hit the scene on January 1, 2025, and promised an €4.4 million boost to the state budget annually.
The Proposed Amendments
March witnessed a rejected proposal to shift the tax base for gambling in Lithuania towards a turnover tax system, which critics feared would wipe out many operators. The Lithuanian National Association of Betting and Gaming roared in opposition, arguing that a turnover tax would send a large number of gambling firms into the red zone. Rather than banish these companies, MPs opted to up the tax rate, with increases ranging from 20% to 22% for slot machines, table games, bingo, tote, bets, remote games, and more.
Additionally, the minimum age for gambling will ratchet up from 18 to a ripe 21 years.
Issues on the Table
Deputy Jurgita Sejonienė, of the Homeland Union (Christian Democrats), led the charge for these amendments. During discussions, they considered several pivotal changes to the law: an all-out ban on gambling advertising, an 18-to-21 gambling ban for both online and offline platforms, and a cap on monthly player spending, as well as restrictions on cash payments for winnings.
Tackling problem gambling head-on, an amendment proposed would force operators to implement self-exclusion mechanisms for vulnerable players.
Motivations and Outcomes
The fervor surrounding limiting and regulating gambling businesses stemmed from a scandalous case involving Šarūnas Stepukonis and BaltCap Investment. In this affair, Stepukonis found himself down millions in corporate funds at casinos. The parliament aimed to put brakes on such incidents by ratcheting up the gambling tax in Lithuania.
Parliament swiftly approved the age limit increase, while the tax hike is set for a final round of votes before the New Year rolls around. All gambling operators will also be obliged to disclose winnings or losses exceeding €100,000 to the state tax office on a monthly basis.
Upcoming Gaming Events
Mark your calendars for the SIGMA Europe Conference in Budapest from September 2 to 4, hosted by Soft2Bet. Plus, for the latest in gambling regulations and industry news, stay tuned right here!
Sources
- Florida's gambling ad regulations tighten for children and live sports programming
- Lithuania's parliament approves significant amendments to the Gambling Act
- UK gambling industry updates on money laundering and politically exposed persons
- College athletes may soon be able to profit from their names, images, and likeness after legal changes in the USA
- Lithuania's revised gambling laws are forthcoming, providing specifics is not yet available
- The increased tax rate on various gambling activities, such as slot machines, table games, bingo, tote, bets, remote games, and more, was proposed by Lithuanian MPs due to concerns about corruption in finance and the case involving Šarūnas Stepukonis and BaltCap Investment.
- To address concerns about problem gambling and reduce its impact on the general public, particularly younger demographics, Lithuanian MPs are considering implementing self-exclusion mechanisms for vulnerable players and potentially banning gambling for individuals under the age of 21, both online and offline.
