iGaming drives Lithuania’s 6.9% gambling growth

Garance Limouzy August 12, 2024

In the first six months of 2024, in Lithuania, the a total income of €116 million, a 6.9% increase compared to the same period in 2023. The latest figures showcase the ongoing shift towards online gambling, as iGaming continues to outpace traditional, land-based venues.

iGaming and lottery growth

The revenue from online gambling reached €81 million, a 12.6% rise from the previous year. This growth comes from the increasing popularity of digital platforms, driven by broader internet access and technological advancements. In addition to the main iGaming sectors, the lottery vertical also experienced growth. Lottery ticket sales amounted to €70.9 million, a 4% increase from the first half of 2023. Player winnings during this period totalled €38.1 million, up 2.3% compared to the same timeframe last year.

Land-based decline

On the other hand, land-based gambling venues declined, with their total revenue falling by 4.6% to €35 million. This decrease correlates with a reduction in the number of gambling devices, which dropped from 4,154 to 4,081, suggesting a waning demand for certain types of in-person gambling.

€37.6 million in taxes

The Lithuanian government tax collection benefited from this growth in gambling activity. €37.6 million was collected in taxes from the gambling and lottery sectors, representing a 12.6% increase from the first half of 2023. Of this amount, €13.5 million came from lottery operators, while €24.1 million was contributed by gambling operators.

Increased taxes

Lithuania is set to increase its gambling taxes from 20% to 22% starting January 2025, following a heated debate in the Seimas, the Lithuanian Parliament. Initially, the proposal aimed to ban gambling advertisements and shift the tax base to a turnover tax. These amendments faced strong opposition from the National Betting and Gaming Association, which argued that it would harm operators’ profitability. The final approved amendments also include raising the minimum gambling age from 18 to 21 and introducing stricter regulations, such as mandatory self-exclusion for players showing signs of gambling addiction. These changes are expected to boost the state budget by €4.4 million annually.