Lithuania Rejects Proposed Tax Increases on Gambling Licences and Lottery Revenue Amid Regulatory Overhaul
Lithuania’s Ministry of Finance rejected a proposal to raise gambling licence tax from 22% to 30% and lottery tax from 18% to 25%, deeming it disproportionate during regulatory reforms. The Farmers and Greens Union sought funds for mental health and addiction services. Officials propose reallocating the existing 18% lottery tax, cutting state revenue by €11.9m.
SCCG Take — The decision spares operators extra costs while they absorb compliance expenses from the tightening regime. It signals priority on regulatory stability over immediate new fiscal revenue from gambling.
The Ministry of Finance of Lithuania has refused to advance a proposal from the Farmers and Greens Union to raise the tax on gambling licences from 22% to 30% and the tax on lottery income from 18% to 25%. Finance Deputy Januš Kizenevič determined the changes would be disproportionate, as licensed operators already face costs from the country’s gambling regime overhaul. The proposal had targeted new revenue for mental-health services, addiction prevention, and public well-being.
Kizenevič cited the lack of consultation with industry on the tax increases. He maintained that further hikes at this stage would impose an excessive additional burden on licensed businesses. According to reporting by Lottery Daily, the ministry rejected moving the measure forward for review by the Seimas.
Costs Absorbed During Market Transition
Lithuania applies the 22% duty to gross gaming revenue from betting, totalisator, bingo, table games, gaming machines, and online gambling. This covers eight land-based casino licences, 50 arcade halls, and 10 online licences. Lottery operator Olifėja pays 18% calculated against the nominal value of tickets distributed.
Since November 2025, remote gambling operators have installed centralised platforms to identify customers and record activity. Operators connected these platforms to the unified regulatory control system from May 2026. The changes form part of a phased shift toward a more restrictive gambling market by 2028. Advertising restrictions are in force, with sponsorship bans set for 1 January 2028. The minimum gambling age has increased to 21, and operators face stronger requirements to identify and intervene in risky play patterns.
Ministry Proposal on Lottery Tax Allocation
The ministry has instead proposed reorganising the existing lottery tax without altering the headline rate. Under this draft, 10 percentage points of the current 18% duty would allocate to the state budget, with the remaining eight points distributed to non-governmental organisations and eligible recipients.
“The new draft does not envisage changing the total tax burden on lottery organisers,” Kizenevič told ELTA. “They would continue to pay the same 18% of the nominal value of distributed lottery tickets.” Based on the previous year’s results, the change would reduce Lithuania’s annual state-budget income by approximately €11.9m.
Reporting: Lottery Daily
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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