CNBNews

It would be difficult to deny that the heart-pounding feeling of successfully winning a bet or a lottery is an amazing one. After taking a leap of faith or relying on our knowledge and skills, we are left with one of two outcomes. And when the outcome is positive, it also comes with big winnings and a sense of accomplishment.

However, it is important to remember that winnings are much less frequent, and this makes an impression that casinos tend to earn big amounts of money. Before we begin counting their profits, we shouldn’t forget one simple and annoying factor—taxes. In Lithuania, federal taxation reaches a lot of sectors, and people tend to overlook how gambling businesses are affected by it.

Gambling in Lithuania

The very first thing to understand is that gambling is pretty popular in Lithuania. Location-based casinos manage to attract many players into their halls. Starting with colorful slot machines and ending with high-stakes poker tables, every casino has ways to entertain their guests. On the other hand, the online gambling platform in Lithuania is also rapidly increasing. The possibility to gamble online or with mobile platforms is a much more comfortable option that has been rising in popularity, reaching its peak during the pandemic. Whether players tend to stick to the traditional option of going to casinos or enjoy the adrenaline rush from their phones and computers, gambling remains a popular activity in Lithuania.

Do gambling operators have to pay taxes?

The short answer is yes. The gambling sector is no exception to federal taxation rules, and it also has to pay taxes. As of 2025, the taxation rate for gambling operators has risen from 20% to 22%. It doesn’t matter if the operation is location-based or online; it is still taxed by the government. On top of that, operators are required to pay one-time license fees to be eligible to provide certain services. For example, if a casino wants to have table games or gambling machines under Category A, a one-time fee of €300,000 is required. The same applies for online gambling, but the price of the license rises to €500,000. 

Taking into account both the taxes and fees to be able to operate, it becomes obvious that earning a profit from gambling is not as easy as it may seem at first.

Do players have to pay taxes?

In Lithuania individual bettors are not required to pay taxes based on their winnings. However, this applies only if their winnings come from licensed operators. If their winnings come from unlicensed websites or foreign platforms, it is very possible that they will be taxed. But since there are plenty of licensed and legal options in Lithuania, players can enjoy tax-free gambling. But before celebrating, it is important to understand that taxation still affects players. In the end, gambling is a business, and the purpose of casinos and online gambling sites is to earn money. Because of the large fees to start the business and the constant taxes, operators are forced to decrease the winning odds that they offer to their players.