Latvia has officially integrated the Gambling and Lottery Supervision Inspection into the State Revenue Service, consolidating licensing, compliance, and tax administration functions within a single authority. This reorganization aims to improve administrative efficiency and strengthen oversight amid the rapid growth of the interactive gambling market.
 

Control of Latvia’s Gambling Sector Transfers to the Tax Authority

Latvia has restructured its regulatory system by incorporating the Gambling and Lottery Supervision Inspection into the State Revenue Service. As a result, licensing, compliance, and inspection functions have been consolidated under a single tax and supervisory body. These changes became possible following the adoption of relevant legislative amendments and involve transferring key responsibilities to specialized units within the Service.

The Ministry of Finance noted that the reform is intended to enhance administrative efficiency and strengthen oversight. It also reflects current market trends: online gambling continues to grow, while the offline segment gradually declines.
 

Updated Supervisory Structure

Within the Non-Financial Sector Supervision Department of the State Revenue Service, two units now assume the responsibilities of the former regulator. One unit handles licensing, compliance monitoring, and legal support, while the other is responsible for conducting inspections — both on-site and remote — including technical and financial audits.

Previously, regulation of the sector was divided between two structures under the Ministry of Finance. The Gambling and Lottery Supervision Inspection oversaw legal compliance and licensing, whereas the State Revenue Service managed tax administration and enforcement within the gambling industry.
 

Factors Behind the Merger

Officials described the previous model as functional but resource-intensive. Each body had to independently establish control and administrative systems, complicating coordination and requiring constant information exchange.

The Ministry of Finance emphasized that the reform aims to optimize administrative processes and strengthen supervisory mechanisms. Centralizing these functions under a single authority has allowed Latvia to combine tax administration with regulatory oversight.
 

Online Gambling Growth as a Key Factor

The decision is also linked to market changes. Land-based gambling in Latvia has been declining, while online gambling is rapidly expanding, increasing the technical demands on regulators.

Remote gambling requires stricter controls over cybersecurity, data management, and the processing of large volumes of digital information. Under the previous system, where the Gambling and Lottery Supervision Inspection operated independently, these factors limited the effectiveness of oversight.

 

 

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