Gambling Law and Licensing in Latvia 2025

The EU has a few regulated hubs where rules are clear and supervision is active. The Latvian market obviously belongs in that group. Recent policy shifts strengthened player protection and tightened enforcement against unlicensed offers. The regulation update also kept a workable route for serious online brands to launch. For new operators and venues who want to expand, the balance is strict but predictable.

Casino Market explains how the system works and why the remote channel carries the most weight here. Our team outlines who oversees the industry, how permissions are granted, and what changes once you go live. If you are exploring a credible EU base for an online casino or sportsbook, this jurisdiction deserves a detailed look.

Get an official Latvian licence or order a turnkey solution at Casino Market to build a compliant project with a respected EU permit.

Legal Status of Gambling in Latvia

All land-based and online (interactive) activities in the country are officially regulated and strictly controlled under the Law on Gambling and Lotteries.

The bill permits a broad range of verticals:

• casino games (slot machines, roulette, card, dice, etc.);
• sports betting (totalizators and wagers);
• bingo;
• games of chance via telephone.

Both brick-and-mortar and interactive gambling are permitted under national licences. Lottery operations are also legal but are mostly reserved for the state (can only be run by Latvijas Loto). All entertainment of this kind is subject to central oversight by the Lotteries and Gambling Supervisory Inspection (IAUI) under the Ministry of Finance. This authority issues licences, monitors compliance, and works to prevent illegal participation.

Notably, Latvia has outlawed unlicensed gambling. Operators must have a local permit to offer services, and the government actively blocks unauthorised websites (hundreds of domains are blacklisted each year). Even players face penalties for using unlicensed platforms, which reflects Latvia’s hard-line stance to channel all activity into the regulated system.

The minimum gambling age was recently raised to 21 for all casinos and related products (lotteries remain 18+), as part of ongoing responsible interaction reforms. In addition, new social measures are in place. For example, punters must identify themselves (e.g., via personalised smart ID cards), and there are strict limits on working hours (land-based venues can only operate 6 a.m. to 9 p.m., and even web platforms face daily downtime requirements).

Licensing Process for Online Operators

Latvia’s registration system is known for being stringent but clear. To run any gambling business in the country, an entrepreneur must obtain a national permit from the IAUI. To ensure this, an operator must meet several key requirements.

Local Registration and Budget

Key legislation demands that only inland-registered firms are eligible to apply. In practice, this means an international operator must establish a Latvian joint-stock organisation (AS) with a substantial paid-up share capital of at least €1.4 million. The budget requirement serves as a financial guarantee and must be maintained throughout the operation.

Company Holding

The law also imposes ownership and governance restrictions to ensure local/EU oversight. Non-EEA foreign share in the company must be capped at 49%. This means that a majority stake should be held by investors from Latvia, the EU, or similarly trusted jurisdictions (EEA or OECD countries). Likewise, at least half of the board of directors should be EU residents.

Licence Categories

The Latvian regulator issues permits for different types of gambling activities. At the same time, iGaming is generally covered under the broader framework. In other words, an operator can get a license to run casino-style games, betting, bingo, and other activities. They can also do these things online with the same license, which is commonly dubbed a "interactive permit" when it covers the digital form. If an operator solely wants to offer online gambling and not have any physical locations, they can register for a lower charge.

Sportsbook & Other

Operators who intend to offer betting or lotteries need to ensure they apply for those specific categories, as each vertical may be stipulated in the permit. Notably, non-state companies cannot run national lotteries as those remain a monopoly. However, private sweepstakes-like games (promotional or local) are allowed under separate permits.

Compliance Requirements

Online operators have to go through strict technical and compliance inspections as part of the licensing procedure. Before giving the go-ahead, the regulator will go over the planned gaming system and software to make sure they are fair and safe. Applicants must send in a lot of paperwork. An authorised lab must test and certify all gaming software and equipment to make sure they meet technical criteria. Players must also have a local bank account for their money and a statement from the Latvian financial institution that will handle transactions.

The IAUI typically processes a complete online licence application within 90 days. If any additional information is required, the clock resets upon submission of those details. However, in general, the timeline is around 3 months for a decision. Once granted, a permit is valid indefinitely but must be re-registered every year after the regulator confirms continued compliance. Annual renewal is largely a formality so long as the operator pays the fee and abides by all regulations.

Taxation of Gambling Operations

The cost profile mixes a percentage levy on gaming revenue with fixed licensing fees. Online brands pay deductions on GGR, while land-based venues also face per-device charges. Corporate tax applies only when profits are distributed, so reinvestment can be efficient.

Key financial obligations to model:

1. GGR tax by product. Interactive casinos and other online games are subject to a 12% on gross gaming revenue. Virtual betting and telephone wagering each account for 15%, while bingo accounts for 10%. A government-approved rise will lift interactive to 15%, betting/telephone to 18%, and bingo to 12% from 1 January 2026.
2. Licence fees. One-time issuance is €427,000 for a full permit (land-based with or without online) or €200,000 for a virtual-only authorisation. Every licence is re-registered annually for €45,000.
3. Land-based device taxes. Instead of GGR on machines and tables, fixed annual amounts apply per unit. Current rates rise in 2026 (e.g., slots move from €6,204 to €7,440 per machine and roulette/card/dice tables from €33,696 to €40,440).
4. Corporate income tax. The general regime distributed profits at 20% (retained earnings are untouched), which favours growth-stage reinvestment and content or market expansion.
5. Player taxation. Residents declare gambling winnings above an annual threshold (untouched if below). Operators must keep clear payout records to support reporting.

How to Get a Remote Gambling Licence

This pathway turns a plan into a compliant operation. To get the permit without any problems, a business owner must meet the regulator's requirements, which include having a local presence, connecting required safety gear, and sending in regular reports.

Key steps to get a licence:

1. Set up the company. Incorporate a Latvian joint-stock entity (AS) with at least €1.4 million paid-up capital. Arrange governance so that control and board residency meet EU/EEA rules.
2. Secure banking and domain. Open a local account dedicated to player funds and settlements. Reserve a compliant .lv address for the site and align brand assets with disclosure requirements.
3. Build the compliance stack. Document KYC flows, age gates (21+), self-exclusion handling, AML triggers, source-of-funds checks, and data retention. Appoint a responsible-gaming lead.
4. Certify the platform. Engage an approved lab to test RNG, live-dealer pipelines, wallet accuracy, logs, and failover. Capture findings in a formal report for the file.
5. Prepare the package. Compile corporate records, cap-table details, clean-record proofs for key persons, source-of-capital evidence, technical diagrams, and hosting contracts.
6. File with the IAUI. Apply to interactive operations and pay the one-time online-only fee. Expect questions on ownership, software integrity, and player-fund segregation.
7. Go live and maintain. Launch under approved domains, submit scheduled tax returns, and re-register annually with the inspection.

The Main Things about Getting Licensed in Latvia

Clear rules, firm oversight, and predictable timelines define this appealing jurisdiction. Entry costs are high, but the result is an EU permit with strong credibility.

The essentials to keep in mind:

• National authorisation comes from the Lotteries and Gambling Supervisory Inspection, with online brands treated like venues and required to run verified 21+ accounts, self-exclusion, AML, and responsible-play controls.
• Foreign entrants operate through a Latvian joint-stock company with €1.4 million paid-up capital, EU/EEA control, resident directors, a .lv domain, and a Latvian interface.
• Costing includes €200,000 for online-only (or €427,000 if land-based is included) plus €45,000 yearly re-registration, while GGR rates are 12% for iGaming, 15% for online betting, and 10% for bingo.
• Technical obligations cover certified software and games, regulator data access, a local bank account for player funds, and a typical decision window of about three months before an indefinite licence that requires annual re-registration.
• Enforcement is active through domain and payment blocks, strict ad limits, audits, and meaningful penalties, so compliant operators benefit from a cleaner, trusted EU framework.

If you are ready to move from planning to approval, Casino Market can help you with the licensing process. Order a fully legal gambling project in Latvia on a turnkey or White Label basis. Buy all the necessary software to update an existing platform at our studio.

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James Burton The Casino Market partner, the owner of the gambling establishments’ network

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