Latvia plans single gambling oversight body and new tax rates for 2026

Latvia’s government will merge its gambling regulator into the State Revenue Service (SRS) and raise taxes across the gaming sector under the 2026 state budget, seeking to consolidate oversight and expand fiscal intake.

Finance Minister Arvils Ašeradens announced that the Izložu un azartspēļu uzraudzības inspekcija (IAUI), the Lottery and Gambling Supervision Inspectorate, will be folded into the SRS on April 1, 2026 — earlier than initially planned. The decision was approved by Prime Minister Evika Siliņa’s cabinet.

“The integration of gambling oversight into the State Revenue Service will allow us to establish unified management faster, make better use of our resources and deliver higher-quality services to the public,” Ašeradens said during a government briefing.

Officials said the change is intended to reduce duplicate functions between the two agencies and centralize licensing, tax collection, enforcement, and anti-money laundering supervision.

Next year's budget includes significant changes to gambling taxation starting Jan. 1, 2026. The annual levy on each gaming machine will rise from €6,204 to €7,440. Roulette, card, and dice tables will be taxed at €40,440 per year, up from €33,696.

The tax rate for telephone games of chance, betting, and wagers will move from 15% to 18% of revenue. Bingo will increase from 10% to 12%, and interactive gambling will rise from 12% to 15%.

The Finance Ministry projects the revised gambling taxes will generate about €9.2 million. The budget also contains tax hikes for other sectors, including higher excise duties on tobacco and alcohol.

The Latvian government said the gambling measures are part of its wider revenue strategy. The 2026 budget allocates €565 million in new spending: €320 million for security, €94.8 million for family support, and €45 million for education. These allocations will be funded by tax increases and spending reductions across ministries.

Tobacco duties are set to rise by 5% in both 2026 and 2027, followed by an average 15% increase in 2028, excluding cigars, cigarillos, and e-liquids. Alcohol taxes will also rise, including an additional €15 per 100 liters of absolute alcohol on spirits from March 2026 and a 10% increase on all alcoholic beverages, including beer, from March 2028.

The fiscal package also includes a new 10% excise duty, though officials noted it could be reviewed after the October 2026 elections.

By moving the IAUI under the SRS, Latvia plans to consolidate gambling licensing, tax administration, and compliance monitoring within a single authority. Government representatives said this is expected to reduce administrative overlap and provide a clearer regulatory structure as the country prepares for tighter fiscal policies in 2026–27.