Nearly five years after enforcing gambling restrictions as part of its COVID-19 response, the Latvian government is now facing financial repercussions as gambling operators seek compensation for their losses. According to Latvian Television’s “de facto” programme, claims totaling €7.3 million have been submitted by affected companies.
Initially, the restrictions only applied to land-based gambling venues, but a later amendment—backed by the Greens and Farmers Union (ZZS) and two independent MPs—expanded the ban to include online gambling as well. This measure remained in effect for 63 days before the Constitutional Court ruled it unconstitutional in December 2020, stating that it had been unlawful from the outset. Following this decision, gambling operators began pursuing financial compensation for their losses.
The compensation claims are based on three main factors: lost profits, currency depreciation, and legal expenses. According to lawyer Lauris Liepa, the government had an opportunity to resolve the issue through negotiations after the court ruling, but instead chose to contest the claims in court, leading to inevitable losses.
So far, two compensation rulings have been finalized: LLC Alfor, which initially sought €656,000, was awarded €453,000, while Olympic Casino Latvia’s claim was also reduced by nearly €300,000. The remaining claims are expected to be settled by March 2025.
Meanwhile, Latvia continues to tighten its gambling regulations. The Riga City Council has announced plans to reduce the number of gambling venues within the city, and in August 2024, the government raised the minimum gambling age from 18 to 21 as part of broader efforts to enhance consumer protection and regulatory oversight.