Lithuania to block payments to unregulated gambling operators

The Lithuanian parliament has approved an amendment requiring financial institutions to block payment card transactions to unregulated gambling operators. The measure aims to reduce participation in unlicensed gambling activities and enhance oversight of the industry.

To facilitate the new regulations, the Gaming Supervisory Authority (LPT) will create a whitelist of licensed operators authorized to conduct remote gaming in Lithuania. Payment service providers will be required to process transactions only for companies on the whitelist. Failure to comply within 24 hours of a directive could result in fines ranging from €1,800 to €3,800 ($1,875- $3,960) per violation.

The government collaborated with financial institutions to address gaps in the existing payment system. Officials noted that payment procedures currently lack sufficient data, such as company codes, to block prohibited transactions effectively. The updated system will aim to close these loopholes and improve enforcement.

The LPT has already blacklisted over 1,600 unlicensed gambling websites, arguing that direct controls on payment providers are the most effective way to curb illegal gambling activities. Despite these efforts, unregulated online gambling accounted for 15% of Lithuania's gambling market in 2021, resulting in an estimated €2 million ($2.08 million) loss in tax revenue.

In addition to payment restrictions, Lithuania will raise the legal gambling age from 18 to 21 starting in July. This change will apply to all forms of gambling except for national lottery draws, aligning Lithuania with countries like Belgium and Greece that enforce similar age limits.

Further changes in the gambling sector include an increase in the tax rate for slots, casino games, and online gambling from 20% to 22%, effective in 2025. The Ministry of Finance is expected to finalize additional measures as part of the new tax framework.