Latvia

EU jurisdictions rarely leave room for improvisation in gambling. Oversight is strict, reporting is constant, and the compliance bill is never small. Latvia follows the same logic. It is a regulated market with clear entry barriers and active enforcement, making it a workable option for operators seeking legal access, stable payment routing, and a brand that does not live in permanent grey-zone risk.

2WinPower breaks down the country’s iGaming licensing from the operator’s perspective, focusing on what matters in practice. Our experts discuss who regulates the sector, the costs of entry, the length of the approval process, and which rules can stop a launch if they are treated as formalities.

Legal Setup

Latvia is a licensed gambling market with clear entry barriers and a regulator that has a long track record of supervision. The rules are not friendly to test launches or half-ready products, because the country expects proper capital, audited processes, and ongoing reporting from the very beginning.

Remote play is a huge part of the local infrastructure. In 2024, licensed online gambling produced €154 million in gross gaming revenue, up from €137 million in 2023. Total GGR reached €300 million in 2024.

The core framework is set out in the Law on Gambling and Lotteries, which is supported by tax rules and secondary regulations. The licensing model is national, meaning operators need Latvian permission to offer games or accept bets from residents.

Key Institutions

For years, supervision has been associated with the Lotteries and Gambling Supervisory Inspection (IAUI), which publishes market data, keeps enforcement tools active, and operates player-protection mechanisms. That will change soon in a very concrete way, since Latvia has adopted amendments that transfer multiple responsibilities to the State Revenue Service (Valsts ieņēmumu dienests, VID). The text outlines that VID will handle licensing decisions and maintain the self-exclusion register, with a transition from IAUI around the effective date.

Company Requirements

Latvia does not treat gambling as a normal service business.

The law sets strict corporate criteria, such as a minimum share capital of €1,400,000, for gaming companies. On top of that, a 49% foreign ownership cap for shareholders outside the EEA is mandatory (as set out in the law’s eligibility rules).

This alone removes many low-budget models from the table, because the capital threshold is structural.

Market Reality

Latvia has a small population, yet its online volume is meaningful.

IAUI’s sphere overview for 2024:

• 19 gambling operators (plus the state lottery company “Latvijas Loto”);
• 17 online licences issued;
• €131 million of GGR for casinos, €20 million for betting, and €2.5 million for poker tournaments.

For investors who want to join, those figures matter for planning because Latvia is a fully regulated and measured jurisdiction.

Online Gambling in Latvia

Remote gaming is treated as a licensed activity, with a separate category and a specific tax base. Operators are expected to run controlled payment flows, protect minors, and stop access for self-excluded players. A typical online portfolio in Latvia covers casino games, sports betting, and poker formats, based on what is already present in official market reporting.

The country actively limits the visibility of unlicensed sites. IAUI maintains a publicly available list of blocked domains in Latvia, which clearly states that participation in illegal interactive gambling is prohibited. This enforcement detail affects the acquisition strategy. If a brand aims at Latvia without a local licence, it is not grey but immediately becomes a target for blocking and payment pressure.

Latvia uses a tax model based on gambling revenue, and charges vary by product category.

The Finance Ministry’s published fee and tax schedule lists these rates:

• 15% of revenue from interactive gaming activities;
• 18% for totalisator and betting;
• 12% for Bingo.

If you compare older models used in the market, the change is not cosmetic. VID’s published material on the amendments shows a move upward from earlier levels (12%/15%/10%) to the higher rates above.

Licence Acquisition

The Latvian route is documentation-heavy, and the financial entry point is high. The state does not hide pricing, which helps planning, but it also removes the ability to negotiate the baseline down.

The mandatory payments that appear in official state guidance:

• €200,000 for issuing an interactive gambling permit (online-only);
• €427,000 if a company wants a broader licence scope that includes land-based gaming plus interactive rights;
• €45,000 for re-registration (renewal) of a permit.

Those amounts sit on top of the capital requirement, which is separate and must be maintained within the company's structure.

A common operator expectation is months, not weeks. Latvian law sets a formal review window for licence decisions, usually about 90 days, during which the authority reaches a conclusion.

Latvia expects a real operating company with controls and proof, so the application process begins long before the form is submitted.

A typical roadmap to the permit:

1. Set up the corporate system and financial base. A legal structure must meet share capital rules and ownership limits.
2. Prepare internal policies and operational documentation. Player protection, AML procedures, payment handling, complaint processes, and record-keeping must be adhered to.
3. Confirm technical compliance. The law includes sections on certification of gambling equipment and the interactive system, so tech cannot be delivered later.
4. Submit the application and respond to regulator queries. You should expect follow-up questions, clarifications, and requests for additional proof.
5. Plan for ongoing reporting and licence maintenance. Taxes, auditing, and re-registration duties are continuous, not annual housekeeping.

Opportunities and Challenges

Latvia does not usually reject applicants for random, dramatic reasons. Projects stall because several small requirements stack together and create real friction.

What most often causes delays and costs time and money:

• capital and ownership structure constraints (the €1.4 million budget rule and non-EEA share limits force early restructuring);
• regulator transition risk (licensing and control functions are set to shift to VID from April 2026, so timelines can overlap with institutional change);
• tax pressure on unit economics (higher rates reduce margin, especially for betting-heavy brands);
• enforcement reality (blocked domains list and clear anti-unlicensed positioning make grey entry fragile);
• local restrictions in major cities (municipal rules can tighten land-based presence, which impacts omnichannel plans).

Meanwhile, operators often underestimate that corporate tax planning in Latvia works differently from that in many EU states. Profit is generally taxed upon distribution rather than as an annual charge on retained earnings, which changes cashflow models and dividend strategy.

Vivid Benefits

The Latvian market offers a clean, licensed environment, but it also demands discipline. Online share growth is the main opportunity, while entry costs and policy tightening are the primary risks.

Online performance is already strong. In 2024, remote GGR exceeded land-based segments in scale, and the casino vertical dominated the digital mix. That is a clear signal that Latvia is a market where a well-run iGaming product can find volume without relying on offline exposure.

Regulation is also readable. Fees, tax rates, and licence categories are published in a way that allows proper modelling before launch.

Challenges to Overcome

However, Latvia is not a cheap EU jurisdiction. The upfront licence fee for online-only activity is €200,000, plus a €45,000 re-registration payment, and the corporate capital rule sits at €1.4 million. That is a high bar for a small market.

Policy movement is another risk. The adopted amendments shift key functions to VID from April 2026, which may affect how applications are processed during the transition window.

Finally, tax rates have moved upwards for several products. If your model relies on thin margins, the country will quickly expose that weakness.

The Main Things About Latvia as a Gambling Jurisdiction

The country is often positioned as a transparent iGaming destination with a clear framework. At the same time, it is priced and structured for serious operators. If your plan relies on low fixed costs or flexible ownership, the country will force a redesign before you even reach the submission stage.

Key aspects about licensing in Latvia:

• Legal digital gambling generated €154 million in GGR in 2024, indicating strong digital demand.
• An online-only interactive licence has an official issue fee of €200,000, with a re-registration payment of €45,000.
• The law sets a minimum share capital of € 1.4 million and limits non-EEA ownership to 49%.
• Latvia enforces licensing through domain blocking tools and publicly lists restricted sites.
• Registration and oversight duties are set to shift towards VID from 1 April 2026, which makes timing a real operational factor.

With high demand and constant changes, obtaining an iGaming permit in destinations like Latvia can be challenging for an inexperienced entrepreneur. 2WinPower offers proficient licensing services thanks to the deep expertise of our legal department.