This week, Latvia announced a regulatory restructure, with gambling regulator, Lottery and Gambling Supervision Inspectorate (IAUI), being integrating into the State Revenue Service (SRS).
This reform, which took effect on 1 April 2026, sought to simplify administrative processes and improve supervisory efficiency.
According to the Ministry of Finance, the reorganisation was intended to reduce bureaucratic fragmentation. It aimed to “streamline state administration resources and strengthen the supervisory capacity of the gambling and lottery industry, by integrating it into a unified tax and supervisory administration system”.
The ministry emphasised that bringing tax and oversight under one roof would enhance the ability to identify both financial and legal risks.
Cabinet approved the move in October 2025, alongside related legislation embedded within Latvia’s 2026 budget.
The IAUI’s supervision and control roles will be divided between two newly established units within the SRS’ Non-Financial Sector Supervision Department. SRS absorbed 21 staff positions as part of the merger.
A fast-tracked tax increase
The regulatory restructure coincided with tax increases that came into force on 1 January 2026. Tax rates on interactive gambling services were increased from 12% to 15% of GGR, while betting taxes increased from 15% to 18%, and bingo taxes rose from 10% to 12%.
Additionally, fixed annual charges applied to gaming machines and table games have been adjusted upwards. The Ministry of Finance projects these combined measures will generate an additional €9.2 million in revenue.
This will include approximately €175,000 directed to local governments. The Association of Licensed Gambling Operators in Latvia (LLAB) hit back at the tax increase. It warned it could result in a decline in tax revenue. It also warned that it could lead to the closure of more than 20 gambling venues nationwide.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/legal-compliance/regulation/latvia-merges-gambling-watchdog-tax-authority-regulatory-restructure/
