Lithuania, officially known as the Republic of Lithuania, is a Baltic country located in Northern Europe. Gambling was illegal for many years until it was finally legalized in 1992. Currently, both land-based and online gambling are legal in Lithuania, and the main piece of legislation regulating the industry is the 2001 Gaming Law.
For a long time, the gambling industry in Lithuania was very limited, with online gambling licenses issued only to operators that were already running brick-and-mortar casinos in the country. Thanks to the legislative changes in 2021, operators can now apply for online casino licenses even if they do not own land-based casinos.
As a member state of the EU, Lithuania is required to comply with EU gambling directives. With the implementation of the latest amendments in 2021, the Lithuanian gambling legislative system is fully compliant with the requirements imposed by the EU. One reason for the new regulations is Lithuania’s goal to attract more foreign investment, as the number of online casinos currently operating in the country is quite low.
History of Gambling in Lithuania
Until 1992, Lithuania was a part of the USSR, where most forms of gambling were deemed illegal. After the country gained independence, it began legalizing gambling activities in 1992. The lottery was the first form of gambling to be legalized in Lithuania.
Land-based casinos came under regulation in 2001 with the enactment of the Gaming Law. Although it has been amended several times over the years, this remains the legislation that regulates gambling in Lithuania. Under this law, operators who wish to run land-based casinos or gambling halls are required to obtain a license from the Gaming Control Authority.
Once brick-and-mortar casinos were legalized in Lithuania, numerous facilities were launched, with about 20 land-based casinos operating in the country at one point. Unfortunately, the global recession of 2008 forced quite a few casinos to shut down, and the coronavirus pandemic further decreased the number of land-based casinos operating in Lithuania.
In 2003, online lotteries were legalized through the Law on Lotteries, making lottery games the only form of online gambling that was legal in the country for many years. In 2016, other forms of online gambling were legalized through an amendment to the Gaming Act of 2001. Even though this law was supposed to liberalize online gambling in the country, for many years only companies already operating land-based casinos in Lithuania were allowed to apply for online casino licenses.
Because of this restrictive online gambling model, Lithuania was repeatedly criticized by the EU for not complying with its gambling directives. Under pressure, the country amended its Gaming Law in 2021, allowing operators to apply for online-only gambling licenses. This change made the gambling industry in Lithuania much more inclusive and compliant with Article 56 TFEU and Article 8 of Directive 98/34/EC.
Gambling Regulations in Lithuania
Gambling has been legal in Lithuania since the country gained independence in 1992. Over the years, the main law regulating the industry has been reviewed and amended several times to reflect its ongoing evolution. Still, the gambling sector is governed by the Gaming Law, enacted in 2001.
Under this act, the legal gambling age is 18 for non-casino games, while entry to land-based or online casinos is restricted to those 21 or older.
Operators that wish to offer gambling in Lithuania must obtain a license from the Gaming Control Authority, a division of the Ministry of Finance established when the Gaming Law came into force in 2001.
In 2016, the Gaming Law was amended to introduce online gambling. The update allowed operators already running land-based casinos to apply for an online casino license. For several years, other companies could not secure a virtual gaming license unless they also operated a brick-and-mortar venue.
Fortunately, in 2021, the law was amended again to level the playing field. Following the latest changes, operators can now apply for online-only licenses. This opened the market to more companies because they no longer need a physical casino to secure an online license.
Land-Based Casinos and Slot Halls in Lithuania
Other Legal Forms of Gambling in LithuaniaOnline Gambling in Lithuania
Online gambling is also legal in Lithuania, and the 2016 amendment to the Gaming Law allows operators to apply for online gambling licenses. To provide online casino or online sports betting services, operators must be licensed by the Gaming Control Authority. Before online casino games and sports betting were legalized in 2016, the only legal form of online gambling in Lithuania was the lottery. Because the lottery has been monopolized by the state-owned Olifeja, it was the only operator permitted to sell lottery tickets online.
Lithuania legalized online gambling primarily because of the overwhelming amount of illegal play on foreign, unlicensed websites. Prior to the introduction of legal online gambling, it was estimated that Lithuania was losing about €6 million per year because taxes were not collected from unlicensed online gambling. Since online gambling became a legal and regulated sector in Lithuania, the country has been using ISPs to block access to unlicensed gaming and betting websites.
Even though online gambling was legalized by the 2016 amendment to the Gaming Law, the sector remained very restricted until the recent legislative changes. Prior to the changes in 2021, only operators that were already licensed to operate a land-based casino in Lithuania could apply for an online gambling license. Because this restrictive policy was not compliant with EU gambling directives, the country had been pressured several times to review its Gaming Law. In 2021, Lithuania adopted an amended version of the law, changing the requirements for obtaining an online gaming license. Thanks to the latest revision, operators can now apply for an online-only gambling license from the Gaming Control Authority.
Now that private companies can obtain a virtual gambling license without operating a land-based casino, the Lithuanian government hopes to attract more investment, as very few companies have joined the country’s online gambling sector so far.
Gambling Regulator and Licenses in Lithuania
Under the Gaming Law of 2001, the regulatory body that governs the gambling industry and issues licenses in Lithuania is the Gaming Control Authority. It is a division of the Ministry of Finance and is responsible for supervising the gambling sector in Lithuania.
There are five types of licenses that the Gaming Control Authority can issue:
- Casinos offering table games and Category A machines
- Machine halls offering Category B machines
- Bingo
- Totalizator
- Sports betting
It is possible for a single operator to obtain all five types of licenses. Those who wish to conduct remote gambling must acquire one of the aforementioned licenses and also receive permission from the Gaming Control Authority.
There are two types of lottery licenses that can be issued to operators who wish to conduct lottery games in Lithuania. The first is a national lottery license, while the second is a local lottery license. The Gaming Control Authority issues the license for the national lottery. A license for a local lottery is issued by the executive body of the respective municipality in which the lottery will be conducted.
Companies that want to apply for a lottery or gambling license must provide the following documents:
- An application that includes information about the company, such as its name, physical address, email address, registration code, phone number, the full name and occupation of the company’s director (or the person authorized to submit the application), that person’s signature, and a list of the documents attached to the application
- Documents confirming the formation, payment, and disposition of the company’s capital
- Information about the members of the supervisory board, the board of directors, the company’s executive officer and their deputy, the full name and identification number of the company’s chief financial officer, and details of these individuals’ participation in other companies
- Documents detailing the funds provided by the company’s founders and shareholders that were used to acquire shares in the company
Gambling Taxes in Lithuania
Lotteries and gambling activities in Lithuania are taxed, with the respective rates being determined by the Lottery and Gambling Tax Law. The taxes are levied on operators who have been authorized to legally conduct lottery games and gambling activities.
A tax of 5% is levied on the price of lottery tickets sold during a lottery. Receipts collected from bingo games, totalizators, and bets are subject to an 18% tax. A tax rate of 13% applies to lottery games and gambling conducted remotely. The tax base for online gambling is the revenue generated minus the winnings paid out by the operator.
Under the Lottery and Gambling Tax Law, table games and gaming machines are also taxed monthly. The tax imposed on Category A machines is €260 per month, while Category B machines are taxed at €130 per month. The monthly tax levied on roulette, dice, or card table games is €2,300.
Closing Thoughts
The gambling industry in Lithuania has come a long way since it was legalized in 1992. After the country gained independence, various forms of gambling began to be regulated, most of them still governed by the Gaming Law enacted in 2001.
Although the 2001 legislation established the framework for most forms of gambling in Lithuania, the law has undergone several amendments to keep pace with the evolving sector. In 2016, Lithuania began legalizing online gambling, allowing operators to apply for online casino and sports betting licenses.
According to the law, the Gaming Control Authority is the body responsible for licensing lottery and gambling services in Lithuania. It is also the authority that issues licenses for remote gambling within the country. However, up until recently, only operators who were already running a land-based gambling facility were allowed to apply for an online license.
In 2021, Lithuania amended its Gaming Law once again to create a more inclusive online gambling environment. The latest changes allow operators to apply for online-only licenses, and the Lithuanian government hopes this will attract more investors and expand the country’s gambling market.