Latvia declares war on unregulated online gambling operations; crackdown targets both operators and their customers
Latvian authorities are ramping up efforts to combat unlicensed online gambling operations after the government of the Baltic nation Saeima approved earlier this month a set of amendments to the existing gambling law.
Gambling news outlet LoginCasino reports that multiple new measures will be implemented for tackling unauthorized operations on the territory of Latvia. The pending crackdown aims to prevent Latvian gamblers from accessing unlicensed casino and betting websites.
Under the recently amended regulatory regime, local financial institutions and Internet service providers will be required to disclose the identity of Latvian nationals who opt for unregulated gambling websites. Any gamblers caught to be violating the nation’s gambling rules will face fines of up to €350 per incident.
There will be also penalties for those who attempt to evade paying tax on winnings. Such incidents will be fined at 23% on winnings of over €3,000.
Under the recently approved measures, financial institutions will be required to block transactions to and from unlicensed online gambling companies.
Local Internet service providers have been urged by Latvian authorities to strengthen their monitoring efforts and be more stringent in blocking unauthorized gambling websites. The Latvian Lottery and Gambling Inspectorate has so far blacklisted more than 1,500 gambling domains, but according to local media, ISPs have blocked only a third of those.
Crackdown on Land-Based Operations
Only nine gambling companies are authorized to provide their products and services to Latvian customers. According to official data, these generated revenue of just over €41 million last year. And according to estimates by H2 Gambling Capital, Latvia’s unregulated online gambling market could account for two-thirds of the country’s overall digital gaming and betting sector.
It should also be noted that Latvian authorities are actually fighting a two-front war against gambling. Aside from its efforts to block unlicensed online gambling operations, the Baltic nation has also launched a fresh push to shutter land-based gambling halls.
It emerged last month that the capital Riga was planning to revoke the licenses of nearly 200 gambling halls around the city. Last year, the Riga City Council announced plans to close facilities in the city’s central district. However, its fresh efforts will see the closure of gambling halls even in Riga’s suburban areas.
City officials have commented on the move saying that Riga’s economy should not depend too strongly and even thrive thanks to an industry that ruins “the lives of thousands of residents.”
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