Latvia Q3 2025: Online Gambling Now Dominates 56% of Market as Land-Based Declines

Latvia's gambling sector generated €218.45 million in revenue during the first nine months of 2025, a slight 0.9% decrease compared to the same period in 2024, according to the latest data from IAUI (Izložu un azartspēļu uzraudzības inspekcija), the country's gambling regulator.

Online Gambling Dominates the MarketInteractive gambling revenue reached €122.67 million in the nine-month period, representing a 7.7% year-on-year increase. Online gambling now accounts for 56.1% of total sector revenue, continuing its upward trajectory.

The breakdown of online gambling revenue shows:

Slots and casino games: €105.02 million (85.6% of online revenue)Sports betting/totalisator: €15.28 million (12.5%)Card games: €2.36 million (1.9%)Land-Based Sector Shrinks DramaticallyThe shift to digital has accelerated the decline of physical gambling venues. Compared to pre-pandemic levels, Latvia has seen 144 gaming halls close, reducing the total from 310 to just 166 venues operating in September 2025. The number of gaming machines has dropped by 52.2%, from 8,720 to 4,175 units.

IAUI Director Signe Birne attributed this decline to both municipal administrative decisions and operators' profitability calculations.

Tax Contributions and Regulatory EffortsLicensed operators contributed €44.06 million in special taxes and fees to state and municipal budgets, plus an additional €46.60 million in other taxes. While tax receipts exceeded 2024 figures by €1.19 million, they fell €2.08 million short of projections.

Illegal Gambling Remains a ChallengeIAUI has blocked 3,909 domain names linked to 593 illegal operators and continues working with payment institutions to prevent transactions with unlicensed sites. Despite these efforts, research firm H2GC estimates illegal gambling maintains a 24% market share in Latvia for 2025.

The country's self-exclusion registry now contains 91,392 unique individuals, with 36,738 currently holding active exclusion status. A total of 20 licensed operators serve the Latvian market: 6 land-based, 3 retail betting shops, and 18 online operators.