08-03-2024

The Ministry of Finance proposes significantly higher fines and more safeguards for gambling

The Ministry of Finance has presented the prepared amendments to the Gaming Law, which significantly increase fines for gambling organizers for non-compliance with the requirements of the law. Measures are also proposed that obligate gambling organizers to prevent irresponsible gambling, strengthen the protection of problem gamblers, and increase the transparency of the sector.

"The reluctance of gambling companies to follow the recommendations of responsible gambling led to stricter regulation of the obligations of gambling organizers, as well as taking into account the negative impact on society, reducing the availability and attractiveness of gambling. In addition, substantially higher fines of up to several million euros will be provided for companies that do not comply with the requirements. All this will make it possible to create more effective control mechanisms and provide more transparency to this sector", says Minister of Finance Gintarė Skaistė.

The already valid recommendations for responsible gambling urge gambling operators to apply measures to prevent problem gambling, but in the absence of a legal obligation and adequate financial sanctions, they are followed slowly.

After the adoption of the proposed amendments, the gambling organizer will be obliged to identify gamblers who meet the signs of problem gambling, and if it is determined that a person is on the verge of problem gambling, to apply an intervention to him.

The law also proposes to set a fine of 5 % of the gross annual income from the previous year for failure to comply with the requirements of player protection, responsible gambling, permitted advertising, and a fine of 10 % of the gross annual income for the same violation committed repeatedly during the year. It is likely that the imposition of such fines will ensure more effective supervision of gambling organizers and deter gambling companies from committing and repeating violations.

The currently valid Gaming Law provides for fines for legal entities for violations of the law starting at EUR 6 thousand up to EUR 25 thousand, for a repeated violation - from EUR 12,000 up to EUR 50 thousand. A maximum EUR 50 thousand fine is on average equal to one day's gross revenue of the gambling company, so it is not an effective means of preventing violations. From 2020 until 2024, a total of 39 fines totaling EUR 660,000 were imposed on gambling companies.

The Ministry of Finance also proposes establishing an obligation for gambling organizers to ensure that gambling houses (casinos), slot machines, bingo halls, and totalizer points have a qualified employee who, if there is a suspicion that a gambler is becoming irresponsible, will address him and offer a cooling-off break or stop gambling.

Finally, it is proposed that every company organizing remote gambling be obliged by law to install a remote gambling platform, which would not only contain unified information about the gambler and his operations, but would also give the Gaming Control Authority the opportunity to connect to the platform at any time and check the stored data in real time, ensuring more effective control of gambling organizers.