Lithuania to Impose Higher Taxes on Gambling Starting January 2025
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Lithuania's Gambling Law Overhaul: A Closer Look
The Lithuanian Parliament (Seimas) held a discussion in April 2024 about amending the country's gambling laws. The original idea was to limit or ban gambling companies' marketing strategies. However, due to strong opposition within parliament, this notion was instead shifted towards raising gambling taxes and introducing additional amendments. The amended law was approved on June 18, 2024, and will take effect on January 1, 2025. The changes are estimated to boost the annual nation's budget by €4.4 million.
The Proposed Changes
In March, a plan to alter Lithuania's gambling tax base met rejection since it could potentially cripple operators' profit margin. The Lithuanian National Association of Betting and Gaming vehemently opposed the initial proposed amendments, maintaining that a shift to turnover tax might drive several operators into bankruptcy. As a result, the proposal evolved to enhance the tax rate from 20% to 22% for slot machines, table games, bingo, tote, bets, remote games, and simultaneous increases in the minimum gambling age to 21 years.
Considered Amendments
Member of Parliament Jurgita Sejonienė of the Homeland Union (Christian Democrats) initiated the amendment-led parliamentary debate. During the discussion, significant amendments under consideration included:
- A total ban on gambling advertisements.
- Raising the minimum gambling age both offline and online to 21 years.
- Placing restrictions on cash payments for winnings, setting spending limits for gambling establishments.
Another proposed amendment was the implementation of a mandatory self-exclusion system for players exhibiting signs of problematic or addictive gambling behaviors.
Implementation and Decisions
The impetus for these discussions stemmed from the scandalous case of Šarūnas Stepukonis and BaltCap Investment, where the former purportedly lost millions of euros of corporate funds in casinos. In an attempt to prevent future recurrences, the parliament opted to increase the gambling tax rate in Lithuania.
Meanwhile, the measure aimed at raising the gambling age limit received immediate approval from the Seimas. The enhanced gambling tax rate will likely face a final vote before coming into force in January 2025. All gambling operators will be required to submit information about their high-rolling players (those with winnings or losses exceeding €100,000 per month) to the state tax office.
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Enrichment Data:Gambling laws are subject to frequent changes in the European Union, such as stricter Know Your Customer checks and age limits. Minimum gambling ages vary between 18 and 21 across European countries. Lithuania's recent changes may align with broader EU policies, focusing on consumer protection and compliance.
To gain comprehensive insights into the specific implications for Lithuania, information about the passed amendments would be necessary. However, one can expect that any changes in Lithuania's gambling laws would generally harmonize with wider EU policies to promote responsible gaming and enforce regulatory compliance.
The amended gambling laws in Lithuania, projected to boost the annual budget by €4.4 million, will now include a higher tax rate for various gambling activities and a minimum age increase to 21 years. (Binds 'amended law', 'higher tax rate', 'various gambling activities', and 'minimum age increase to 21 years')
Politicians in Lithuania are considering a ban on gambling advertisements, stricter cash payment limitations, and spending restrictions for gambling establishments as part of the ongoing efforts to prevent problematic gambling behaviors. (Binds 'ban on gambling advertisements', 'stricter cash payment limitations', and 'spending restrictions for gambling establishments' with 'politicians in Lithuania')
