LAW ON LOTTERIES AND GAMBLING TAX AND FEE

https://www.iaui.gov.lv/en/regulations

Unofficial translation

with amendments adopted by Parliament

on September 19, 2013

REPUBLIC OF LATVIA

LAW ON LOTTERIES AND GAMBLING TAX AND FEE

1.Section Companies, which in accordance with the law have received a license to organize and run lotteries and games of chance, pay a lottery and gambling tax.

2.Section A state fee is payable for a special license to organize and run games of chance, the amount of which is:

(1)

1. for organization and operation of slot machines, bingo, roulette, cards and dice games:

1. for issuance of the special license – 427 000 euro,

2. for prolongation of the special license – 35 580 euro,

3. for yearly re-registration of the special license – 35 580 euro for each year;

4. for permission to operate a casino – 28 460 euro Lats for each year;

5. for permission to operate a gaming or bingo hall – 4270 euro for each year;

2. for organization and operation of totalizator and betting:

1. for issuance of a special license – 42 690 euro,

2. for prolongation of the special license – 42 690 euro,

3. for yearly re-registration of the special license – 42 690 euro for each year;

3. for organization and operation of games of chance on the telephone:

1. for issuance of a special license – 14 230 euro,

2. for prolongation of a special license – 14 230 euro,

3. for yearly re-registration of a special license – 14 230 euro for each year.

(2) The yearly re-registration of the special license is to be done starting from the year after the issuance or prolongation of the license.

(3) When receiving, prolonging or re-registering the special license, a check must be shown that certifies the paying of the state fee.

(4) The state fee for permission to operate a casino, gaming or bingo hall is to be paid before receiving the permission or before the date when the permission was issued. (This part of the law comes into force on 01.01.2005)

(Wording of the law of 22.11.2001, with amendments done with the law of 18.09.2003)

3.Section (1) The taxation object of the gambling tax is the gambling organisation – an enterprise, gambling venue location and gaming equipment. The tax is collected from each equipped or installed gambling venue for each calendar year in accordance with the following rates:

1. roulette (cylindrical game) – for each table that is connected to the rotating device of roulette – 17 279,36 euro;

2. cards and dice games – for each table – 17 279,36 euro;

3. slot machines – for the playing place of each machine – 3141,70 euro.

(2) The tax on the game of chance via the telephone is 15 percent from the income from the organization of the said game (GGR).

(3) The gaming tax for totalizator and betting is 15 percent from the income from the organization of the said game (GGR).

(4) The gaming tax of the bingo game is 10 percent from the income from the organization of the said game (GGR).

(5) If games of chance are organized with the help of means of telecommunications, the gaming tax disregarding the type of game of chance organized with such means is 10 percent from the income from the organization of the said games.

(As amended by the law of 4.03.97, law of 05.08.99, law of 22.11.01, law of 12.12.02 and law of 18.09.2003. Sub points 8. and 9. come into force on 01.01.2005, 16.06.2005, law of 14.04.2011 and 15.12.2011, come into force on 01.01.2012)

4. Section (Excluded with the law of 22.11.2001, that comes into force on 01.01.2002)

5. Section (1) The gambling tax shall be calculated each month for each gambling place of each slot machine and each game table in each place where gambling is carried out, including the month when the slot machine or game table was installed or dismantled, as 1/12 from the amount of taxes stated in Section 3.

(2) Gaming operator should inform Inspection about planned number of gaming machines and gaming tables in the gaming venue till the first date of next month.

(3) Gaming operator can move gaming machines and gaming tables to another gaming venue during the month, taking into account that total number of planned gaming equipment will not be increased.

(4) During a calendar month the video games and mechanic slot machines, which are located outside casinos and gaming halls, can not be moved to casinos and gaming halls.

(Wording of the law of 22.11.2001 with amendments of the law of 18.09.2003, that comes into force on 01.01.2004, law on 14.04.2011, comes into force on 01.06.2011).

6. Section The lotteries organizer pays a state fee for the issuance of a special license in the following amount:

1. for national lotteries – for each calendar year – 14 230 euro;

2. for local lotteries – for each calendar year – 720 euro;

3. for national instant lotteries – for each draw – 8540 euro;

4. for local instant lotteries – for each draw – 720 euro;

5. for single local lotteries – for each draw – 35 euro.

(Wording of the 28.11.1999 law as amended by the law of 05.08.99 and 22.11.2001 that comes into force on 01.01.2002)

7. Section The object of the lottery tax is the income from ticket sales.

The lotteries tax is calculated from ticket sales in accordance with the following rates:

1. lotteries – 10%;

2. instant lotteries – 10%.

(As amended with the law of 05.08.99, that comes into force on 01.10.99, law on 16.06.2009, come into force 01.07.2009.)

8. Section Non-profit organizations, their associations and religious organizations are exempt from the state fee for the issuance of the special license and lotteries tax if they organize only single local lotteries as provided in the law.

9. Section Gambling that is organized in means of transportation of international routes is exempt from the gambling tax if only registered passengers can use the gambling hall.

10. Section (1)The gambling tax is payable every month as 1/12 of the total yearly tax rate.

(2) Gambling tax for games of chance on the telephone is payable every month in proportion with the income from the organization of the games of chance on the telephone.

(3) Gambling tax – 15 percent from the income from the organization of totalizator and betting is payable every month in accordance with the income received from the organization of totalizator and betting in the respective month.

(4) Gambling tax – 10 percent from the income from the organization of games of chance which are organized with the help of means of telecommunications, is payable every month in accordance with the income received from the organization such games. (Wording of the 16.06.2005)

(5) Lotteries tax is payable every month in proportion with the income from the sale of the tickets.

(6) The lotteries and gambling tax for the relevant month is paid until the 15^th of the next month (the 15^th included).

(7) Lotteries and gambling organizers within 15 days after the end of a quarter submit to the State Revenue Service the lotteries and gambling tax report with the calculated lotteries and gambling tax for the quarter in question. The Cabinet of Ministers approves the report forms and order of their submittal.

(Wording of the 18.09.2003)

(8) Bingo tax is payable every month in accordance with the income received from the organization of bingo games in the respective month. (Wording of the 16.06.2009)

11.Section The tax is to be paid in euro (EUR).

12.Section

(1) Revenues from lotteries and gambling fee [payment for the special license] are paid in the state budget.

(2) 75% of revenues from the gambling tax are to be paid in the state budget mentioned, but 25% – in the budget of the local municipality in whose territory the gambling is organized.

(3) Revenues from the national lotteries tax are to be paid in the state budget, but revenues from local lotteries tax – in the budget of the municipality in whose territory the lottery is organized.

(Wording of the 30.10.2003)

13.Section If the object of the lotteries and gambling tax is being hidden or false information is being provided, the State Revenue Service in accordance with the normative acts shall disputelessly recover the whole amount payable for the object as well as a 100% penalty from the payable amount for the central budget and in case these violations are repeated within 3 calendar years from the first violation – 250%.

(As amended with the law of 11.11.99, that comes into force on 01.01.2000)

14.Section If a company has delayed a tax payment term, then a delay penalty of 5% from the amount not paid shall be calculated for each day of delay. If the payment is delayed for more than 30 days, the State Revenue Service arrests company’s operations in organizing and running lotteries and gambling and proposes to annul the license.

If the special license is annulled, the tax paid for its issuance shall not be refunded.

(Wording of the 28.09.1995 law, that comes into force on 25.10.95)

Transitional Provisions

1. In accordance with the order prescribed in the law “On lotteries and gambling” the re-registration of the special licence and the state fee mentioned in Article 2 of this law for the issuance of the special license is to be paid till 31. December of 1994.

2. Article 6. Point 5. does not apply to those enterprises, that until the date of entry into force of this law have received the special license for organization of single local lotteries, until this license is in force.

3. Amendments to sub points “b” and “c” of 1^st point, first part of Article 2. and its sup points “d” and “e”, amendments to 7. point of first part of Article 3. and its third and fourth part, amendments to second part of Article 5 and its third part, and the third and fourth part of Article 10. come into force on 01.01.2004.

4. The fourth part of Article 2, amendments to point 8. of first part of Article 3 and its point 9. come into force on 01.01.2005.

5. Enterprises whose special licence re-registration term is 31.12.2003 pay the following state fees:

1. for yearly re-registration of the special license –25 000 Latvian Lats for each year;

2. for permission to operate a casino –20 000 Latvian Lats;

3. for permission to operate a gaming or bingo hall –1 500 Latvian Lats.

6. From 01.01.2004 until 01.01.2005 the state fee for permission to operate a casino, gaming and bingo hall is to be paid before receiving the permission.

7. From 01.10.2003 until 01.01.2004 the gaming tax for video games and mechanic slot machines – for playing place of each machine is 600 Latvian Lats.

8. From 01.01.2004 until tax stated in sub points 8. and 9. of first part of Article 3 come into force the following tax for video games and mechanic slot machines is to paid;

1. video games and mechanic slot machines, that are in casinos and gaming halls– for the playing place of each machine – 720 Latvian Lats;

2. video games and mechanic slot machines, that are outside casinos and gaming halls– for the playing place of each machine – 1 020 Latvian Lats.

9. Starting from 01.01.2004, the Cabinet of Ministers stating the state fee payable for issuance of a marking sign provides additional finances for the Ministry’s of Finance Lotteries and Gambling Supervisory Inspection, to ensure control and supervision over organization of lotteries and gambling, using the newest technologies and methods of control and supervision.

The law comes into force on 01.01.1995

The law was adopted in Saeima on 16.06.1994.

President G. Ulmanis on July 2, 1994.

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