Latvia Merges Gambling Regulator Into State Revenue Service

Latvia Integrates Gambling Regulator into State Revenue Service – Government Centralises Licensing, Compliance and Tax Oversight

Key Takeaways

• Latvia has merged its gambling regulator into the State Revenue Service, ending the Inspectorate as a standalone body.
• The State Revenue Service has created two new divisions to handle licensing, compliance, inspections, and technical and financial control.
• The Finance Ministry cited inefficiencies in maintaining separate taxation and regulatory enforcement mechanisms.
• Lithuania and Estonia are also pursuing significant gambling regulatory reforms, including a mandatory gambler card proposal and a planned 4% gambling tax rate.

Latvia Consolidates Gambling Licensing and Taxation Under One Authority

Latvia has restructured its gambling oversight framework by merging the Inspectorate for Supervision of Gambling and Lotteries into the State Revenue Service. The Inspectorate, which was previously responsible for licensing and regulatory compliance in the gambling sector, will no longer operate as a standalone entity.

All of its responsibilities have been transferred to the State Revenue Service, which had previously focused on taxation. The move brings both regulatory supervision and tax administration for the gambling sector under a single government body.

According to officials at the Ministry of Finance, the change is intended to streamline what was described as an expensive and structurally inefficient system. Previously, two separate institutions exercised enforcement mechanisms over the same sector, one focused on regulatory compliance and the other on taxation. The government concluded that this duplication created unnecessary administrative complexity.

Two New Divisions Created for Licensing and Inspections

To manage the expanded mandate, the State Revenue Service has established two dedicated divisions. One division will oversee licensing and compliance monitoring. The other will conduct remote and on site inspections and carry out technical and financial control.

This structural separation within a single authority is designed to distribute workload while maintaining centralised coordination. The Finance Ministry stated that the reform aims to optimise oversight and reduce bureaucratic friction, particularly as online gambling becomes the dominant vertical in the market.

By consolidating these functions, Latvia intends to create a more coordinated supervisory framework. For operators and users, this means that licensing, compliance checks, and taxation processes are now handled within one administrative system rather than across multiple agencies.

Regulatory Developments Across the Baltic Region

Latvia is not the only Baltic country adjusting its gambling framework. In Lithuania, a new regulatory proposal has been tabled that would introduce a mandatory gambler card. If approved, the card would function as a centralised monitoring system.

Finance Minister Kristupas Vaitiekūnas stated that the proposed system would allow authorities to assess more accurately how users engage with Lithuania’s gambling sector. The country is planning a broader overhaul of its gambling regime in 2028. The mandatory card is positioned as part of this wider restructuring process.

If implemented, the card would serve as a tool for generating a comprehensive overview of gambling activity within the reformed framework. However, the proposal has also raised reservations, particularly in relation to user privacy.

Estonia, the third Baltic state, is also undergoing significant regulatory changes. The country is targeting a 4% gambling tax rate by 2028. If achieved, this would place Estonia among the lowest gambling tax jurisdictions in Europe and 1% below Malta, which is widely recognised as a major international iGaming hub.

These parallel reforms indicate that all three Baltic states are actively reassessing their gambling oversight and taxation models.

Implications for Operators and Market Structure

The Baltic region hosts several established gambling groups, including Entain through its Enlabs brand, Fortuna Entertainment Group through TOPsport, and Olympic Entertainment Group through OlyBet. Structural changes in regulation and taxation may therefore have operational relevance for companies active in these markets.

In Latvia, the centralisation of licensing and tax supervision may affect how operators interact with authorities, particularly in areas such as compliance reporting, audits, and inspections. With online gambling identified as the dominant vertical, the reform signals a regulatory focus on digital operations and technical control mechanisms.

In Lithuania, the proposed mandatory gambler card would introduce a new monitoring requirement for users and operators if adopted. In Estonia, a lower tax rate could alter the fiscal environment for licensed operators by 2028.

Each reform remains nationally specific, but together they reflect a broader trend of structural adjustments in the Baltic gambling sector.

Our Assessment

Latvia has formally consolidated gambling licensing, compliance, inspections, and taxation under the State Revenue Service, eliminating the standalone Inspectorate. The reform is presented by the Finance Ministry as a measure to reduce administrative duplication and improve coordination, particularly as online gambling expands.

At the same time, Lithuania and Estonia are advancing separate regulatory initiatives, including a proposed mandatory gambler card and a planned 4% gambling tax rate. These developments demonstrate that the Baltic region is undergoing coordinated structural changes in gambling oversight, taxation, and market supervision.