Lithuania Proposes New Tax Structure for Land-Based Gaming

The Lithuanian government is considering a significant shift in land-based gaming taxation. A bill proposed by the Ministry of Finance is set to be reviewed by the Seimas, where it may be voted into law. Under the current tax structure, land-based operators face fixed fees determined by the number of gaming machines or tables they operate. Specifically, this amounts to €260 per month for Category A slot machines, which allow unlimited winnings, €130 per month for Category B slot machines with limited stakes and winnings, and €2,300 per month for a gaming table. In contrast, other gambling forms are taxed based on gross gaming revenue (GGR). The government has indicated that the current fixed fee system creates inequities, as operators performing poorly effectively pay higher tax rates relative to their revenue. The proposed legislation seeks to change this by imposing an 18% tax on GGR for land-based slots and table games. "So far, we are seeing tax inequalities in the gambling sector," stated Minister of Finance Gintarė Skaistė. "Currently, a gambling business pays a flat fee, not a percentage of the revenue generated. We want a clearer, one-size-fits-all taxation system that is fairer: in the months of higher turnover, businesses would pay more, in lower months they would pay less. At the same time, the new procedure will increase the transparency of the gambling sector and ensure fairer taxation." After the Seimas votes on the proposal, the legislation's future will be clearer. Additionally, last month, the Seimas moved forward with a bill allowing online-only licenses, eliminating the requirement for online operators to partner with land-based businesses. However, the country's anti-corruption agency cautioned that this could create an uneven playing field, favoring online operators, as their licenses would have indefinite terms compared to the five-year limit for land-based licenses. Furthermore, online licensees would require approval solely from the gambling Supervisory Service, while land-based operators must seek local government approval.