The most recent European nation to contemplate and implement a gambling industry tax increase is Lithuania. The rate will increase from its current 20% to 22%, which is considered a modest hike.

The measure, which introduced the required legislative changes to the Law on Lottery and Gambling Tax, was approved by 72 Members of Parliament. Nine of their coworkers have chosen not to cast ballots.

With a resounding majority, Lithuania increases the gambling tax.

Although the law has been approved, it won't take effect until 2025. This means that beginning early next year, the new rate will apply to all gambling operations in the nation, including but not limited to slot machines, bingo, table games, and land-based and interactive gambling in general.

The rate is set up to generate more income. According to government estimates, the industry's higher tax rate—which includes lottery games—will increase state revenue by €4.4 million. However, the competitiveness of the market would not be impacted, which is a common concern raised in other jurisdictions like the Netherlands, Sweden, and Italy, where much harsher tax increases have been openly considered.

According to the industry's reported gross gambling revenue results for 2023, the market is currently making €222.2 million annually. In the same year, the operators made €59 million.

According to Gintarė Skaistė, the finance minister of Lithuania, such concerns are unwarranted in his nation and shouldn't have a significant impact on the sector's competitiveness. According to the government, the funds will be utilized to better balance the regulated market and its ecosystem.

The regulated gambling market is unaffected by the tax increase.

For instance, a portion of the proceeds will be distributed to the affected businesses to help them ease the financial strain, as Lithuania also voted to outlaw gambling advertisements in the media.

However, the majority of the money will go toward bolstering the nation's efforts to promote responsible gambling and informing the public about the possible negative effects that stem from the sector.

The National Association of Gambling and Gaming Business has cautioned that at least eight legal operators may find the new tax rate too high and may reevaluate their relationship with the market, indicating that the tax hike will not be easy.

Given that there are currently 12 licensed businesses operating in the market, this is a significant number.