Latvia Q1 2025: Gambling Revenue Falls 9% as Economic Pressures Hit Market

Latvia's gambling market experienced a significant downturn in Q1 2025, with total revenue reaching €66.394 million—down €6.5 million (9%) compared to the same period last year, according to data released by the Lotteries and Gambling Supervisory Inspection (IAUI).

The quarter-on-quarter decline was even more pronounced, with revenues falling €12.6 million (16%) compared to Q4 2024.

Market BreakdownA total of 19 operators were active in the Latvian market during Q1 2025:

6 operators running land-based gaming halls and casinos3 operators with totalizator betting points17 operators offering interactive gamblingThe gaming machine segment suffered the largest decline, with revenues dropping 18.9% (€5.95 million) year-on-year. Interactive gambling fared better, recording only a 1.1% decline (€406,000).

Venue Closures AccelerateInfrastructure contraction continued with 16 gaming halls closing and 388 fewer gaming machines in operation compared to Q1 2024. The regulator noted it continues to receive applications for venue license cancellations.

IAUI Director Signe Birne stated that seven operators ended Q1 with losses, while two more broke even. She attributed the downturn to broader economic instability affecting consumer spending across all sectors.

Tax Contributions and EmploymentThe sector contributed €14.6 million in special taxes and fees to the state budget—€1.15 million below target. Municipal budgets received €497,000, with additional calculated taxes reaching €8.7 million. Total sector employment stood at 2,724 workers.

Illegal Market EnforcementThe regulator blocked 90 unlicensed gambling websites in Q1 2025. According to H2GC data, illegal gambling's market share fell to 24% of the interactive market at end-2024, down from 41% in 2020—a 17 percentage point reduction over five years.

Responsible GamblingThe IAUI's psychologist provided 200 consultations (107 in-person, 93 remote) during Q1. The self-exclusion register reached 35,461 active entries as of March 31, 2025.