Lithuania eyes ‘progressive reset’ of gambling taxes by 2028

Parties forming the new coalition government of Lithuania have agreed in principle to impose a ‘progressive gambling tax system’ with the end goal of optimising revenues for state causes. October saw PM Mindaugas Sinkevičius of the Social Democratic Party (LSDP) renegotiated terms of the “For Lithuania” coalition with the Democratic Union. The coalition secured its majority in the Seimas gaining the support of the political bloc of the Farmers Party, Greens and Christian Families. Led by Virginijus Sinkevičius, the Democratic Union is also the party of minister Tomas Tomilinas, who has championed the progressive gambling tax proposal. The coalition will oversee the continued implementation of Lithuania’s gambling reforms, introducing tighter compliance, player protection and advertising requirements ahead of a new regulatory framework taking full effect in 2028. Tomas Tomilinas, the chairman of the Seimas Committee on Social Affairs and Labour, said a group representing the Social Democrats, Farmers and Greens, and Democrats had agreed on the issue during a meeting on 5 November to determine a progressive tax on gambling licences. Last week, deliberations were hosted in Seimas (parliament) as Lithuanian authorities are told to prepare for a tougher supervision of gambling ahead of new rules being introduced on advertising, compliance and player protections. Furthermore national authorities have been told to implement exclusive provisions in relation to the monitoring of Lithuania’s 28 gambling licences (land-based and online). Lithuanian news agency BNS reported that Tomilinas had said the revenue package would bring in an extra 36 million to the state budget. No tax bands or rates had been agreed – “Finally, we have decided specifically on progressive taxation, specifically for gambling,” Tomilinas said after the meeting, BNS reported. The Finance Ministry is finalising its stance on a bill presented by Tomilinas and other members of parliament (MPs). Tomilinas said the model was agreed and it is now down to numbers. The agreement is therefore on the principle of the tax reform, rather than the tax itself which will come later. Operators await the proposed timetable to factor into their financial planning. The tax proposal is part of ongoing discussions for the country’s budget in 2027. Finance Minister Taurimas Valys told MPs that the talks were not over and they could expect further talks in the coming week. Public estimates for the revenue package vary. BNS quoted Tomilinas as saying the package would bring in 36 million in revenue, while public broadcaster LRT quoted a 34 million revenue estimate in its coverage of the meeting, referring to progressive taxation of gambling and lotteries. Rates and revenue estimates still need to be clarified. The figures should be treated as estimates while the government finalises its budget. Full framework & accountability by 2028 Gambling operators are awaiting the proposed timetable to assess the financial impact of the tax proposal. They are also dealing with the prospect of tighter regulation, with changes due as early as 2028. SBC News reported in July 2025 that Lithuania had been seeking gradual restrictions on gambling promotion in the lead-up to its planned ban on gambling advertising from 1 January 2028. The transitional arrangement limits advertising through broadcast media and bans the use of pop-up ads and direct links to betting sites. The rules squeeze licensed businesses on the routes they can take to acquire new customers. The Gambling Control Authority has been given enhanced oversight powers, including fines of up to €700,000 for serious breaches of the rules. Banks are required to block payments to blacklisted sites within 24 hours of a directive from the Gambling Control Authority (LPT). Player protection measures are also being pushed, including technological monitoring of player behaviour, limits on deposits and training for front-line staff on how to intervene when customers are at risk. With the progressive tax proposal, licensed gambling operators will face another change to their commercial environment.