Lithuania Finance Ministry Rejects Tax Increases on Gambling and Lotteries During Market Overhaul

Lithuania’s Finance Ministry has blocked a Farmers and Greens Union proposal that would have raised the gambling license tax from 22% to 30% and the lottery tax from 18% to 25%. Deputy Januš Kizenevič declined to forward the measure to the Seimas for review. Kizenevič cited the disproportionate impact on operators already funding the country’s regulatory overhaul and noted the union submitted the proposal without prior consultation.

Kizenevič said a sharp additional tax in the current transition period would place an “excessive additional burden on licensed businesses.” The union had argued the extra revenue would support mental health services, addiction prevention, and general wellbeing.

Ministry Alternative on Lottery Tax Distribution

Instead of raising rates, the ministry proposed restructuring the existing 18% lottery duty. 10 percentage points would continue to the state budget, with the remaining 8 points directed to non-governmental organizations and eligible recipients. This leaves the total tax burden unchanged for lottery operator Olifėja.

“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.” The reallocation would cut annual state-budget income by approximately €11.9 million based on the prior year’s results.

The 22% duty applies to gross gaming revenue from betting, totalisators, bingo, table games, gaming machines, and online gambling. It covers eight land-based casinos, 50 arcade halls, and 10 online licenses.

Stability During Regulatory Transition

The decision coincides with Lithuania’s phased gambling market overhaul. Remote operators have used centralized customer identification platforms since November 2025 and connected to the unified regulatory control system since May 2026. Advertising restrictions began in July 2025, with sponsorship prohibitions taking effect January 1, 2028.

The minimum gambling age rose to 21, accompanied by stricter operator obligations to detect and intervene in harmful play patterns. Additional steps under review include a universal player card and removal of cash payments from venues, both slated for 2029 subject to Seimas approval.

As reported by Yogonet International, blocking the tax increase prioritizes continuity for licensed businesses absorbing compliance costs. The reallocation shifts revenue streams without raising overall levies. Authorities will need to confirm that public health and addiction programs remain adequately supported under the revised distribution, particularly as 2029 measures add further operational requirements.

Reporting: Yogonet International

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.