Latvia will restructure its gambling oversight and introduce sharp tax increases across the sector as part of the 2026 state budget, in measures designed to boost revenues and streamline regulation.

Finance Minister Arvils Ašeradens confirmed this afternoon that the Izložu un azartspēļu uzraudzības inspekcija (IAUI), the Lottery and Gambling Supervision Inspectorate, will be integrated into the State Revenue Service (SRS) on 1 April 2026, earlier than previously scheduled.

The move, endorsed by Prime Minister Evika Siliņa’s cabinet, aims to reduce duplication between the two agencies and strengthen fiscal control as Latvia prepares for higher gambling duties.

“The integration of gambling oversight into the State Revenue Service will allow us to establish unified management faster, make better use of our resources and deliver higher-quality services to the public,” Ašeradens told a government briefing.

The government has framed the reforms as part of a broader “tax raid” on adult sectors to secure new revenues for state priorities. The 2026 budget earmarks €565m in additional spending, with €320m for security, €94.8m for family support, and €45m for education, financed through both tax hikes and spending cuts across ministries.

From 1 January 2026, gambling taxes will rise significantly. The annual rate per gaming machine will increase from €6,204 to €7,440, while roulette, card and dice tables will be taxed at €40,440 per year, up from €33,696.

The tax rate for telephone games of chance, betting and wagers will climb from 15% to 18% of revenue, bingo will increase from 10% to 12%, and interactive gambling will rise from 12% to 15%.

According to Finance Ministry estimates, these measures will generate an additional €9.2m, of which €9bn will go to the state budget and €175,000 to municipalities.

The budget also confirms steep increases in tobacco excise duties, with 5% rises planned in 2026 and 2027 and an average 15% hike in 2028, excluding cigars, cigarillos and e-liquids. 

Alcohol duties will also be raised, including an additional €15 per 100 litres of absolute alcohol on spirits from March 2026, followed by a 10% increase on all alcoholic beverages, including beer, from March 2028.

A new 10% excise duty has been added to the fiscal package, though observers caution that it may be reconsidered depending on the outcome of the October 2026 elections.

By merging the IAUI into the SRS, the government intends to consolidate licensing, tax collection, enforcement and anti-money laundering oversight within a single authority. 

Officials argue that this will cut administrative burdens, eliminate overlapping processes, and provide greater transparency in public administration as Latvia tightens its fiscal regime for 2026–27.