Latvia proposes online gambling law changes

The Latvian Lotteries and Gambling Supervisory Inspection and the Ministry of Finance has drafted new online gambling laws with a view to having them implemented by as early as 1 January 2012.

Latvia has an existing license/tax/regulatory regime for online gambling operators and is also home to two of the largest dealer studios streaming live games…those of Evolution Gaming and Playtech, both in Riga.  The draft laws propose a number of changes to the existing regime, including:

• a one-time license entry fee for new licensees of LVL 300 000 (EUR 417,000);
• a requirement that non-EU equity holding in the operators cannot exceed 49%;
• an annual license fee of LVL 25 000 (EUR 35,000)
• an ISP ban of unlicensed operators websites;
• payments bans to unlicensed operator bank accounts;
• a 5% tax on gross gambling revenues;
• an increase in the minimum gambling age to 21 years; and
• permission for licensed operators to advertise during the Olympic games provided they are sponsors of either the Latvian Olympic Team or approved sporting federations/associations.

The draft is currently being presented to industry groups and state institutions as part of a consultation process.  As mentioned above, the plan is to have the new law up and running well before the London Olympics in 2012.

The one time license entry fee will not be levied on existing license holders them an obvious competitive advantage over new applicants.