Lithuanian Coalition Backs Progressive Gambling Tax to Lift 2027 State Revenues
Lithuania's coalition has approved in principle a progressive gambling tax expected to yield up to €36m in extra annual revenue for the 2027 budget. Tax rates and bands are still undecided. The move parallels stricter 2028 rules on advertising, compliance, fines up to €700,000 and mandatory player cards by January 1 2029.
SCCG Take — Operators face higher fiscal and compliance costs once thresholds are fixed; regulators must balance revenue goals against market contraction risks.
Lithuania’s governing coalition has agreed in principle to introduce a progressive tax system for gambling licences. The proposal forms part of preparations for the 2027 state budget and is projected to generate up to €36m in additional annual revenue, although final rates, thresholds and timelines have not been set.
Prime Minister Mindaugas Sinkevičius of the Social Democratic Party renegotiated the “For Lithuania” coalition terms with the Democratic Union, led by Virginijus Sinkevičius. Tomas Tomilinas, a Democratic Union minister, championed the tax change. As reported by Focus Gaming News, Tomilinas said after the coalition meeting: “Finally, we have decided specifically on progressive taxation, specifically for gambling.” The coalition secured a Seimas majority with backing from the Farmers Party, Greens and Christian Families bloc.
Tax Proposal and Revenue Target
The €36m figure cited by Tomilinas remains an estimate. No tax bands or applicable licence categories have been published. Discussions continue as part of the wider fiscal package. The source material notes that details on implementation remain undecided, leaving operators without clear guidance on future cost structures.
2028 Reforms and Player Protections
The tax initiative sits alongside a broader regulatory overhaul scheduled for full effect in 2028. A nationwide advertising ban begins January 1, with transitional curbs already limiting broadcast promotions, pop-ups and direct betting links. The Gaming Control Authority can now impose fines of up to €700,000 for serious breaches. Banks must block payments to blacklisted sites within 24 hours.
Mandatory player cards will phase in through 2027 and 2028, reaching full implementation by January 1 2029. Additional measures include behavioural monitoring, deposit controls and staff training on harm identification. These steps coincide with the tax talks but operate on separate timelines.
The final shape of both the tax bands and supporting rules will determine the combined burden on licensed operators and the net revenue actually realised by the state.
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