Latvia Q2 2024: Online Gambling Drives Growth as Land-Based Revenue Declines

Latvia's Lotteries and Gambling Supervisory Inspection (IAUI) has released Q2 2024 market data showing a continued shift toward online gambling, which now dominates the country's gaming landscape.

H1 2024 Market PerformanceTotal gambling revenue for H1 2024 reached €145.7 million, up 2.4% compared to the same period in 2023. The growth was entirely driven by interactive gambling, which generated €76.5 million and now accounts for 52.5% of total market revenue—up from 46.6% in 2023.

Q2 2024 saw a slight 0.3% decline quarter-on-quarter, with total revenue of €72.8 million. Slot machine revenue fell 2.5% to €30.8 million, while online gambling dipped 0.4% to €38.2 million. Casino table games bucked the trend with 28.5% growth to €669,000.

Land-Based Sector Under PressureSlot machine revenue dropped 11% in H1 2024, generating €62.4 million—€7.7 million less than the previous year. IAUI Director Signe Birne attributed this to both the rise of online gambling and venue closures, with 9 gaming halls shutting down since December 2023 and 356 fewer machines in operation.

Tax Revenue and EnforcementDespite declining land-based revenue, tax and license fee collections rose 18.9% to €29 million in H1 2024, following gambling tax increases implemented on January 1, 2024. Additional industry tax payments totaled €26.8 million.

The regulator continued its crackdown on unlicensed operators, issuing 175 blocking orders in H1 2024, bringing the total blocked domains to 3,507.

Market StructureLatvia's gambling market comprises 19 licensed operators: 6 land-based casino/slot hall operators, 1 bingo operator, 4 totalisator betting operators, and 17 online gambling licensees. Within the online segment, slots and casino games represent 85% of revenue, betting 13.5%, and poker tournaments 1.5%.

Responsible GamblingThe national self-exclusion register contained 68,558 individuals as of August 1, 2024, with 34,375 having active exclusion status. IAUI's psychologist conducted 357 consultations in H1 2024 and processed 130 self-exclusion applications.