The Ministry of Finance of Lithuania has refused to review a proposal to raise taxes on gambling licences and lottery income.
A new tax proposal had been submitted by the Farmers and Greens Union to increase Lithuania tax on gambling licences from 22-to-30%, alongside an additional raise in lottery income to 25% from the current rate 18%.
The Greens proposal cited that new funds generated from gambling would help advance Lithuania’s plans to establish a new network of public services for mental-health, addiction prevention and general well-being of citizens.
Yet upon review by Finance Deputy Januš Kizenevič, the proposal of the Greens was rejected to be put forward for review by the Seimas (parliament).
Deputy Kizenevič cited that the proposal sought were “disproportionate” as licensed operators are already absorbing the costs of Lithuania’s extensive overhaul of its gambling regime.
Lithuania applies the 22% duty to the gross gaming revenue generated from betting, totalisator, bingo, table games, gaming machines and online gambling of accrued from eight licences land-based casinos, 50 arcade halls and 10 online licences.
Lottery operator Olifėja pays an 18% tax calculated against the nominal value of tickets distributed.
Since November 2025, remote gambling operators have been required to install centralised platforms capable of identifying customers and recording their gambling activity.
Operators have also been required to connect their platforms to Lithuania’s unified regulatory control system since May 2026.
These requirements form part of a phased overhaul intended to establish a significantly more restrictive gambling market by 2028.
Lithuania began its transition towards a comprehensive advertising ban in July 2025. Current rules restrict the content, placement and frequency of gambling adverts, while the sponsorship of public events, organisations and individuals will be prohibited from 1 January 2028.
The government has additionally raised the minimum gambling age from 18 to 21 and introduced stronger obligations for operators to identify risky patterns of play and intervene when customers display signs of gambling harm.
Further reforms under consideration include a universal player card covering land-based and online gambling, alongside the removal of cash payments from gambling venues. These measures are currently scheduled to take effect from 2029, subject to final approval by the Seimas.
Seimas told to review lottery allocations
Kizenevič maintained that imposing another sharp tax increase during this transition would place an “excessive additional burden on licensed businesses”, with the Greens providing no consultation on tax increases.
The ministry has instead proposed reorganising the existing lottery tax without changing its headline rate. Under its draft, 10 percentage points of the current 18% duty would be allocated to the state budget, with the remaining eight points distributed to non-governmental organisations and other eligible recipients.
“The new draft does not envisage changing the total tax burden on lottery organisers,” Kizenevič told ELTA. “They would continue to pay the same 18% of the nominal value of distributed lottery tickets.”
Based on the previous year’s lottery results, the redistribution would reduce Lithuania’s annual state-budget income by approximately €11.9m.