Latvia combines gambling regulator with tax agency in oversight overhaul

(AsiaGameHub) –   Latvia has implemented a regulatory restructuring this week, merging the Lottery and Gambling Supervision Inspectorate (IAUI) into the State Revenue Service (SRS).

This reform, effective from April 1, 2026, aims to simplify administrative procedures and enhance supervisory effectiveness.

The Ministry of Finance stated that the reorganization is designed to reduce bureaucratic fragmentation. Its objective is 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 highlighted that consolidating tax and oversight functions will improve the identification of both financial and legal risks.

The Cabinet approved this measure in October 2025, along with related legislation included in Latvia’s 2026 budget.

The IAUI’s supervisory and control responsibilities will be distributed between two new units within the SRS’ Non-Financial Sector Supervision Department. The SRS has incorporated 21 staff positions as part of this merger.

A fast-tracked tax increase

The regulatory restructuring occurred concurrently with tax increases that took effect on January 1, 2026. Tax rates for interactive gambling services have risen from 12% to 15% of GGR, betting taxes have increased from 15% to 18%, and bingo taxes have gone up from 10% to 12%.

Furthermore, fixed annual charges for gaming machines and table games have been raised. The Ministry of Finance anticipates that these combined measures will generate an additional €9.2 million in revenue.

This includes approximately €175,000 allocated to local governments. The Association of Licensed Gambling Operators in Latvia (LLAB) has expressed opposition to the tax increase, warning that it could lead to a decrease in tax revenue and the closure of over 20 gambling establishments nationwide.