Online gambling continued its growth trajectory, reflecting a multi-year trend that has reshaped Latvia’s gaming landscape. Interactive gambling now accounts for more than half of the country’s total gambling revenue, a significant shift from pre-pandemic levels when land-based venues dominated the market.
Land-Based Sector Faces Continued Pressure
The physical gambling sector experienced notable challenges throughout 2025. Land-based slot machine revenue declined 12% year-on-year in the first half of the year, falling to €55 million. Table games including roulette and blackjack recorded a 12.5% drop during the same period, totaling €4.7 million.
The number of gaming halls in Latvia has declined sharply over the past two decades, dropping from 327 venues in 2005 to 168 by mid-2025. This represents a contraction of more than 70%. Slot machine installations have also decreased, falling from 4,916 units at the start of 2024 to 4,037 by September 2025.
Industry operators attribute the decline to multiple factors, including regulatory pressure and increased taxation. A 20% tax increase implemented in early 2024 led to the closure of 24 gambling halls during that year.
Online Gambling Sector Shows Resilience
In contrast to land-based operations, Latvia’s online gambling sector has maintained growth momentum. Online casino games account for approximately 80% of total digital gambling revenue, with slots remaining the most popular category followed by table games such as blackjack and roulette.
Live dealer games have gained significant traction, offering players an immersive experience that bridges traditional and digital gaming. The shift toward online gambling has been driven by consumer demand for convenience, diverse game offerings, and mobile-optimized platforms.
Nine licensed operators currently provide online gambling services in Latvia, serving a market where interactive gaming now generates more than half of all gambling revenue. This marks a dramatic change from 2019, when land-based gaming accounted for 80.4% of the market.
Regulatory Environment and Tax Changes
The gambling sector operates under oversight from the Lotteries and Gambling Supervisory Inspectorate, which is scheduled to merge with the State Revenue Service in April 2026. The regulatory body continues its efforts to combat unlicensed operators, having blocked 284 domain names associated with illegal gambling sites during 2024.
Latvia implemented gambling tax increases in January 2026, raising interactive gambling taxes from 12% to 15% of gross gaming revenue. The government projects these changes will generate an additional €9.2 million in annual revenue to fund security, family support, and education initiatives.
Industry stakeholders have expressed concern that higher tax rates could accelerate venue closures and potentially reduce overall tax receipts. The Association of Licensed Gambling Operators in Latvia has warned that the increases could force more than 20 gaming halls and at least 10 table games out of operation.
Market Employment and Structure
The gambling and lottery sector employed 2,688 people in 2024 across 194 gambling halls, three casinos, one bingo hall, and 76 betting shops. As of 2025, 19 operators hold licenses to organize gambling activities in Latvia, with six operators managing live gambling in gaming halls and casinos.
The sector contributed €47.996 million in lottery and gambling tax revenue to the state budget in 2024, with additional taxes levied on sector enterprises totaling €47.732 million.
Latvia’s self-exclusion register, which allows individuals to voluntarily ban themselves from gambling activities, had recorded more than 76,203 registrants since its launch in 2020, representing ongoing efforts to promote responsible gambling practices in the market.
Source: Gaming Intelligence
