Lithuania approves gambling tax increase for 2025

Lithuania approves gambling tax increase for 2025

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Lithuania approves gambling tax increase for 2025

Lithuania, being the latest European country to implement a tax hike in the industry, has recently increased its gambling tax from 20% to 22%.

The decision was made with 72 MPs voting in support of the measure, which included the necessary legal revisions to the Law on Lottery and Gambling Tax. Nine of their colleagues abstained from voting.

Although the bill has been approved, it will not take effect until 2025. This means that the new rate will apply to all gambling businesses in the country, including slot machines, bingo, table games, and land-based and interactive gambling in general, beginning early next year.

The rate is set to generate more revenue. The government estimates that the higher tax rate on the industry, which includes lottery games, will bring in an additional €4.4 million to the state’s coffers, but it will not have an impact on the market’s competitiveness, a common concern raised in other jurisdictions such as the Netherlands, Sweden, and Italy, where much steeper tax hikes have been openly considered.

The market currently generates €222.2 million per year, according to the industry’s 2023 gross gambling revenue results. Operators’ profit in the same year was €59 million. Lithuania’s Finance Minister, Gintarė Skaistė, feels that such fears are baseless and should not impact the industry’s competitiveness. According to the government, the funds will be used to restore the balance of the regulated market.

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