Ministry of Finance: progressive taxation of gambling operators would allow to raise up to EUR 36 million additionally into the State budget
The Ministry of Finance submitted to the authorities and market representatives a draft law amending the Law on Lottery and Gaming Tax, which provides for progressive taxation of gambling operators, for the purposes of coordination and obtaining conclusions. The draft law follows the decision of the Coalition Council to increase the tax on lotteries and gambling.
The proposed legal framework would ensure a greater contribution of lotteries and gambling operators to the financing of public needs, taking into account the observed growth trends in both sectors and their economic capacity to absorb the proposed increase in the tax burden.
The draft law proposes to introduce a progressive model of lottery and gaming tax rates for gambling operators, whereby the rate for the part of the gambling operators' income of up to EUR 3 million (GGR) would be unchanged and the current 22% would be applied, the rate of 29% would be applied to the part of the income from EUR 3 million to EUR 5 million, and the rate of 36% would be applied to the part of the income exceeding EUR 5 million.
It is also proposed to increase the rate of lottery and gaming tax paid by lottery operators from 18 % to 20 %.
The draft law more precisely regulates the procedure for calculating, paying and declaring the progressive tax.
When assessing the performance indicators of gambling companies, a significant upward trend is observed. According to the information published by the Gaming Control Authority under the Ministry of Finance, 12 private limited liability companies organise gambling in Lithuania, and their gross income (income minus paid winnings) grew from EUR 222 million in 2023 to EUR 274 million last year.
Gambling and lottery organisers paid almost EUR 74 million in gaming and lottery tax into the State budget in 2024, and EUR 87 million in 2025. Taking into account their performance indicators for 2025, the amendments to the tax rates proposed by the draft law would allow to raise up to EUR 36 million additionally into the State budget.
The planned changes will create conditions for increasing the State budget revenue, while maintaining a proportionate and differentiated taxation system for the gambling sector—one that reflects the economic capacity of individual market participants and aligns with the state’s objective of placing a heavier tax burden on activities considered less desirable from a societal perspective.