Latvian government clarifies online gambling ban
Online operators have licences suspended until 14 April as government simplifies law
Latvia’s government has moved to clarify that locally licensed online operators will be subject to a countrywide gambling ban imposed last month to stem the spread of the coronavirus.
On Friday, the Latvian Saeima (parliament) voted against proposals amending current laws to exempt online operators from the current lockdown, instead introducing additional amendments fully banning online firms.
The Latvian government had previously outlawed all forms of physical gambling, due to the Covid-19 outbreak but stopped short of banning online gambling, numerical lotteries and instant win games.
However, all Latvian licensed operators, both land-based and online, have had their licences suspended as part of the measures, prompting the Latvian Gambling Authority to ask for specifics on whether online firms would be included.
In the interim period, several other industry stakeholders, including the Latvian Chamber of Commerce as well as several members of the Latvian parliament, claimed including online gambling in a ban would be counterproductive and drive players to internationally licensed sites.
The online gambling ban will remain in effect for the duration of the current lockdown, expected to end on 14 April.
Malta-headquartered firm Enlabs has said it will conduct a migration of its Latvia-facing Optibet.lv sports betting brand to its proprietary gaming platform during the suspension, measures which the company estimates will save €1m annually.
“Approximately 50% of Enlab’s total costs are turnover-based and 50% comprise fixed costs, which will be minimised through a cost-saving programme that is introduced immediately, and through the receipt of state aid,” said Enlabs.
“Enlabs believes that the company will be profitable even if operations in Latvia are shut down.”
Enlabs CEO George Ustinov said Enlabs did not expect the government’s actions, saying that such measures were contrary to the actions of many other jurisdictions and were a “harmful development” for the market.
In addition, Ustinov claimed the shutdown of regulated operations would ultimately highlight the need for a regulated market, driving up traffic on black-market sites.
“The Latvian parliament’s argument for introducing temporary suspension of online gaming licences is to protect people who are financially at risk,” said Ustinov. “Our view is that this goal will not be achieved as a suspension of the regulated market will open the doors to illegal operators.
“Customers receive a completely different level of security and general protection in a regulated environment. Regardless, obvious logic does not apply in these times,” Ustinov added.