Lithuania Moves Towards Progressive Gambling Tax System by 2028
Lithuania.- 10 November 2026 | www.zonadeazar.com Lithuania’s governing coalition has reached an agreement in principle to introduce progressive gambling taxation, seeking to increase government revenue while strengthening oversight of the regulated industry.
Representatives of the governing parties reached the agreement during a meeting held on 5 November 2026.
The proposal forms part of negotiations over the 2027 national budget and coincides with wider regulatory reforms scheduled to take full effect in 2028.
Coalition Agrees on Progressive Taxation
The initiative has been promoted by Tomas Tomilinas, Chairman of the Lithuanian Parliament’s Committee on Social Affairs and Labour.
He confirmed that representatives of the Social Democrats, Farmers and Greens, and Democrats had agreed on the principle of introducing progressive gambling taxation.
The proposed model would replace the current uniform approach with a structure featuring different tax levels.
However, the specific rates, tax bands and implementation timetable have not yet been agreed.
The Ministry of Finance is currently finalising its assessment of legislation submitted by Tomilinas and other lawmakers.
Additional Revenue Could Reach €36 Million
One of the reform’s main objectives is to increase funding for the national budget.
According to Tomilinas, the proposed tax structure could generate approximately €36 million in additional government revenue.
However, public estimates differ:
- €36 million: the figure presented by Tomilinas.
- €34 million: an estimate reported by Lithuania’s public broadcaster, covering gambling and lottery taxation proposals.
Both figures remain preliminary and will depend on the final rates approved by Parliament.
Current Gambling Tax Stands at 22%
Lithuania currently applies a 22% gambling tax on revenue remaining after player winnings have been deducted.
The rate took effect on 1 January 2025, increasing from 20%.
The framework covers sports betting, land-based casinos, gaming machines and online gambling.
Lottery operators are subject to a separate tax regime, currently set at 18% of the nominal value of tickets distributed.
The new proposal has yet to establish how existing rates would change.
Enhanced Oversight of 28 Gambling Licences
The proposed tax reform accompanies broader efforts to strengthen supervision of authorised gambling operators.
Authorities are preparing additional oversight provisions covering Lithuania’s 28 gambling licences, including land-based and online activities.
Regulatory priorities include:
- Stronger compliance monitoring.
- Supervision of commercial operations.
- Consumer protection.
- Prevention of illegal gambling.
- Closer monitoring of licensing requirements.
These initiatives form part of the ongoing modernisation of Lithuania’s gambling framework.
Gambling Advertising Ban Scheduled for 2028
Lithuania is also preparing to introduce a ban on gambling advertising from 1 January 2028.
The transition involves progressively tighter restrictions on operators’ promotional activities.
Existing measures include limitations on broadcast advertising and restrictions on pop-up advertisements and direct links to betting websites.
The forthcoming ban will significantly change customer acquisition strategies for licensed gambling companies.
Fines of Up to €700,000
Lithuania’s Gambling Control Authority (LPT) has received enhanced powers to enforce regulatory requirements.
The authority can impose fines of up to €700,000 for serious violations.
Banks are also required to block payments to blacklisted gambling websites within 24 hours of receiving instructions from the regulator.
These measures are intended to strengthen compliance and limit unauthorised gambling activity.
Stronger Player Protection Requirements
The regulatory reforms also include measures designed to prevent gambling-related harm.
Planned requirements include:
- Technology to monitor player behaviour.
- Deposit limits.
- Staff training to identify potentially harmful gambling.
- Intervention procedures when customers display signs of risk.
The objective is to improve prevention and strengthen operators’ ability to respond to vulnerable players.
Parliament Must Finalise Tax Rates
The taxation proposal still requires further legislative work.
The Ministry of Finance is finalising its assessment, while governing parties continue negotiations over the 2027 budget.
Finance Minister Taurimas Valys confirmed that discussions remain ongoing, with additional meetings expected.
Once the proposed tax bands and rates have been established, the legislation will need to proceed through the parliamentary approval process.
Industry Impact and Next Steps
The agreement marks an important political step towards restructuring gambling taxation in Lithuania.
However, licensed operators still face uncertainty because the final rates and implementation timetable remain undefined.
With additional government revenue estimated at up to €36 million and tighter advertising restrictions scheduled for 2028, Lithuania is moving towards a regulatory framework combining progressive taxation, stronger enforcement and enhanced player protection.
The next round of budget negotiations will be critical in determining the structure and financial impact of the proposed system.
Edited by: Cristobal R.
