» » » » » » Gambling law and barriers in Latvia

Gambling law and barriers in Latvia

Flag_of_Latvia

Taxes

Pursuant to the Law on Lotteries and Gambling Duties and Taxes, companies which, in accordance with the law, have received a licence to organise and run lotteries and games of chance, pay a lottery and gambling tax. A state fee of a variable amount is payable for a special licence depending on the type of game (for specific rates see the list in the synthesis report). If games of chance are organized by means of telecommunications, the gaming tax is 10 percent of all bets paid and accepted regardless of the type of game of chance organized. Non-profit organisations and associations, and religious organisations are exempt from the state fee for the issuance of the special licence as well as from the lotteries tax if they organize only single local lotteries as provided by law.

LISTING

LEGISLATION ENACTED

Federal

General

– Law on Lotteries and Gambling Duties and Taxes, L.V. 2.7.1994, Nr. 76 as amended L.V. 12.11.2003, Nr. 159.
– Law on Joint-Stock Companies
– Law on Foreign Investment in the Republic of Latvia, L.V. 23.2.1993 as amended L.V. 22.8.1996.

Lotteries

– Gambling and Lotteries Law (Azartspēļu un izložu likums), L.V. 7.12.2005, Nr. 195, entered into force mainly on 1.1.2006.

Casino Gaming

– Gambling and Lotteries Law (Azartspēļu un izložu likums), L.V. 7.12.2005, Nr. 195, entered into force mainly on 1.1.2006.

Machine Gambling Outside Casinos

– Gambling and Lotteries Law (Azartspēļu un izložu likums), L.V. 7.12.2005, Nr. 195, entered into force mainly on 1.1.2006.

Betting

– Gambling and Lotteries Law (Azartspēļu un izložu likums), L.V. 7.12.2005, Nr. 195, entered into force mainly on 1.1.2006.

Bingo

– Gambling and Lotteries Law (Azartspēļu un izložu likums), L.V. 7.12.2005, Nr. 195, entered into force mainly on 1.1.2006.

Media Gambling Services

– Gambling and Lotteries Law (Azartspēļu un izložu likums), L.V. 7.12.2005, Nr. 195, entered into force mainly on 1.1.2006.

Sales Promotional Gambling

– Law on Goods and Services Lotteries, L.V. 8.7.2003, Nr. 101 as amended L.V. 14.11.2003, Nr. 161.

BARRIERS

Panorama

General

A special permission (license) is required to organize lotteries and gambling as a form of business in the Republic of Latvia which permission can be conferred only to companies which are registered in the Register of Enterprises of the Republic (Sec. 8 and 63 Gambling and Lotteries Law). In accordance with Art. 10 of the Law on Joint-Stock Companies founders of a joint-stock company may also be foreign citizens and legal entities registered in foreign countries in accordance with the Law on Foreign Investment in the Republic of Latvia. Section 2 of this law provides that for the purposes of engaging in entrepreneurial activity, foreign undertakings (companies) may use permanent representation offices (branches, divisions) in Latvia. In these cases permanent representation offices (branches, divisions) of foreign undertakings (companies) must be registered as independent tax payers in the Republic of Latvia, and they must also be registered with the Enterprise Register of the Republic of Latvia by submitting the information set forth in Annex 4 of this Law. Among other data, a document confirming the address of the permanent representation office opened in the Republic of Latvia as well as special permits (licences) for engaging in particular types of entrepreneurial activity are required if the company intends the office to engage in entrepreneurial activity for which such special permit (licence) is required. This is the case for lotteries and gambling activities (Sec. 8 ss 1 and 63 Gambling and Lotteries Law).

Pursuant to Sec. 8 ss 1 item 2 Gambling and Lotteries Law foreign investment coming from EU Member States is not restricted.

According to Sections 10, 64 and 82 ss 2 item 2 of the Gambling and Lotteries Law the special permission (license) for organising lotteries and gambling is issued by the Lotteries and Gambling Supervisory Inspection under the supervision of the Ministry of Finance. The gambling license is issued for an unlimited period of time and shall be reregistered each year (Sec. 10 ss 2 Gambling and Lotteries Law).

Section 53 ss 5 of the Gambling and Lotteries Law provides that programmes and equipment used for organizing interactive games should be placed in the territory; only in the case of force majeure may programmes and equipment that are outside of the territory of Latvia be used.

Lotteries

A state monopoly of organizing state scale lotteries exists in Latvia under Section 60 of the Gambling and Lotteries Law.

Machine Gambling Outside Casinos

According to point 6 of the transitional provisions of the Gambling and Lotteries Law outside casinos and gambling halls not more than five automatic gambling slot machines may be installed and operated. Pursuant to point 7 of the transitional provisions of the Gambling and Lotteries Law as from 1 January 2006 no licenses for installation and operation of automatic gambling slot machines outside casinos and gambling halls are issued. Pursuant to point 8 of the transitional provisions of the Gambling and Lotteries Law as from 1 January 2007 installation and operation of automatic gambling slot machines outside casinos and gambling halls shall be prohibited.

Sales Promotional Gambling

The Goods and Services Lottery Law (Law on Promotional Lotteries) poses no barriers, however Art. 3 of this law requires that a license be obtained for such activities.

Leave a Reply

Your email address will not be published. Required fields are marked *