In Latvia, virtual gambling accounts for about 15-20% of the entire gaming industry in the country. To develop legal online business, from June 1, 2014, access to all online casino platforms that do not have a license was banned in Latvia. This was done in order to ensure that the profits received from illegal sweepstakes would not go past the state treasury.
And due to the blocking of all illegal gaming portals, the issue of obtaining a license for an online casino in Latvia became acute. According to the head of the Latvian Gambling Supervision Inspectorate, in 2016, the profit from all online casinos in the country amounted to 18,000,000 euros.
For comparison, in 2014, when compulsory licensing for the online gaming business was not yet introduced, the profit in the same industry was 5,000,000 euros. Given that such a policy has increased revenues to the state treasury, licensing has become a prerequisite for running an online gaming business in Latvia.
The system for obtaining a license in Latvia is quite simple, however, there are some features that all entrepreneurs must take into account and strictly observe.
Each company can re-register and become an independent unit of the Latvian online business. But there are some nuances:
In 1994, the Government of Latvia adopted the Law “On the Duty and Tax on Lotteries and Gambling”, according to which the amount of tax interest rates was established. In subsequent years, some amendments were made to this law. The last changes were made in 2014.
Today, according to the legislation of Latvia, the tax on virtual gaming business is 15%, regardless of the amount of profit.
FACT! Double taxation is not envisaged by the Latvian tax policy.
There is also an agreement signed between the online gaming business association and the Latvian Ministry of Finance, which stipulates that this tax on online casinos will not increase until 2019.
It should be noted that such a tax policy in Latvia is considered more loyal compared to other countries where the gaming business is actively developing.
To obtain a license for an online casino, you must:
The license is issued in the following order:
The Latvian State Inspectorate carefully checks the activities of online casinos, and also evaluates the performance of the software.
If everything is in order, then only after payment a license is issued.
Due to the fact that many entrepreneurs have various kinds of difficulties (legal or bureaucratic) in obtaining a license to open their own online casino, more and more companies appear in Latvia that provide legal services and assistance in obtaining a license. Such companies operate strictly within the framework of the laws of the country.
At the moment, the cost of licensing an online gaming business is 427,000 euros. But it should be borne in mind that in addition to the state duty, the manager may need to pay additional permits.
The validity of the license in Latvia is 1 year. At the end of the validity period, the license will need to be renewed by paying the same amount of 427,000 euros.
Among the advantages of legalizing online casinos are the following:
As disadvantages, entrepreneurs point out the rather high cost of obtaining a license and significant legal and bureaucratic red tape.
At the moment, a unified system for electronic supervision of the gaming business is being created in Latvia, which will reduce the risk of tax evasion. The system is expected to be operational in 2019.
The number of closed illegal online gaming resources monthly! is growing.
The decision to license the online gaming business was made back in 1998, and almost 10 years later, this law has been completely improved.
With the introduction of compulsory licensing, many entrepreneurs felt that they could not cope with the high costs of obtaining a license and other permits. Therefore, most gaming companies have decided to abandon the business by putting it up for sale.
But at the same time, it is noted that entrepreneurs who have legalized online casinos and received a license, focusing on honesty and transparency, have a stable and good income. Collapse
