New Laws Aim to Stop Illegal Gambling in Lithuania
Lithuania’s Parliament, the Seimas, has approved amendments to its Gambling and Lottery laws as part of its fight against illegal online gambling.
The updates, set to take effect on May 1, 2025, are designed to strengthen consumer protections and improve the country’s ability to combat unauthorized remote gambling operations. The legislation passed with overwhelming support, receiving 113 votes in favor.
Banks Required to Block Transactions to Unlicensed Operators
A key component of the new gambling regulations is the introduction of stricter obligations for financial institutions. Banks and payment service providers will now be required to block transactions directed toward unlicensed gambling operators. To ensure compliance, these institutions must verify payments against a publicly accessible list of gambling and lottery operators authorized by the Gambling Supervision Service. The measure also extends to online lotteries, with all lottery ticket-related transactions needing verification to prevent unauthorized activity.
Authorities believe that stopping payments to unlicensed operators will reduce illegal gambling participation. Despite blocking over 1,600 illegal gambling websites since 2016, officials admit that existing transaction-blocking measures have proven insufficient. The new framework aims to establish a more effective system to tackle these challenges.
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Huge Loss of Tax Revenue
Illegal gambling poses a substantial financial burden on Lithuania. In 2021, the illegal online gambling sector accounted for 15% of the country’s total gambling market, which represents losses of more than €18 million. The government estimates that uncollected tax revenue from these activities amounted to approximately €2 million.
To reinforce compliance, the amendments introduce penalties for violations of the payment-blocking rules. First-time offenders could face fines between €1,800 and €3,800, while repeat violations may incur penalties of up to €6,000. These measures are part of a broader strategy to improve the integrity of Lithuania’s gambling industry and protect consumers from the risks associated with illegal operations.
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