Lithuanian Gambling Authority reports a significant revenue spike in Q1
Author:
Muhammad Gregory
The gambling regulatory and supervisory authority of Lithuania has recorded a 26.1 percent year-on-year (YoY) increase in revenue generated by the online and land-based gambling segments in the country. The quarterly revenue of the first three months of the current year jumped to €55.3 million from the €43.9 million figure recorded in the corresponding quarter of last year.
The gambling regulatory and supervisory authority of Lithuania has recorded a 26.1 percent year-on-year (YoY) increase in revenue generated by the online and land-based gambling segments in the country. ?Igor Gubaidulin/Unsplash
Over the past few years, the regulated gambling market of Lithuania has recorded consistent growth with an increase in legal operators and the number of active gamblers. This growth has primarily been reflected in the consistently increasing revenue from both gambling segments in the country. Last year, the annual gambling revenue of the Baltic state touched a record-high figure of €195.8 million. The revenue was 40 percent higher than the annual gambling revenue of 2021, which was about €140 million. Gambling has been legal and regulated in Lithuania for decades, but iGaming came into the picture about seven years ago after the online gaming legislation came into force in 2016. Since then, the segment has offered games like virtual slots, online table games, bingo, and sports betting. In a world that is increasingly inclining towards the digital space, it is no big surprise to see consistent growth in the iGaming segment of Lithuania.
Land-based casinos have also performed well over time but were dealt a massive blow due to the Covid-19 pandemic. However, they have recovered well after the lockdown restrictions were lifted. In 2021, when the gates to these casinos reopened for the public, revenue from the land-based casino segment spiked 172 percent. Recent figures have shown that the online gambling segment is responsible for more than half of the gambling revenue accumulated. Land-based casinos may never match those figures, but they remain active and still generate a decent amount from mainly the limited number of players who visit frequently. Until the first half of last year, operators were not allowed to offer online gambling services if they did not own a land-based gambling operation. However, in July last year, several amendments were made to the online gambling law passed in 2016. These amendments eliminated the obligation of owning land-based operations to offer online gaming in Lithuania.
These amendments also attracted several gambling operators who offer online gambling services exclusively. The significant tweaks in the online gaming law are expected to further boost the iGaming segment’s growth in the country. For operators, the procedure of entering the Lithuanian gambling market is almost the same as in other regulated jurisdictions across Europe. The Lithuanian Gambling Authority confirmed that several operators ceased their land-based gambling operations to focus exclusively on the online gambling segment. The growth of the online segment is evident from the revenue recorded in the first quarter of this year. While a YoY increase of 10 percent took the land-based gambling revenue from €1.7 million to €18.7 million, the online gambling revenue rose from €9.7 million to €36.6 million during the same period, marking an impressive 36 percent spike. Together, they ensured a 26.1 percent YoY increase in gambling revenue in the first quarter after collecting €55.3 million.
Detailed analysis of both gambling segments
Within the online gambling segment, Category A virtual slots were accessed the most by Lithuanian gamblers. These games generated a little over €23 million, marking a massive 42 percent YoY increase. Online sports betting generated the second-highest revenue in this segment as a 17% YoY spike saw the final figure jump to €9.6 million. The third-highest revenue came from online table games, which reeled in €2.9 million, signifying a 5 percent YoY increase. The lowest revenue in the online gambling segment came via Category B virtual slots, which generated almost €980,000 in the first three months of 2023. This figure was 2 percent higher than what was reported in Q1 of last year.
Category B slot machines were the best performers in the land-based gambling segment as they reeled in almost €8 million. This figure was 14 percent higher than the Category B slot machines revenue in Q1 last year. Table games were the second-highest-grossing source of revenue in this segment, as they roped in about €4.4 million, marking an 8 percent YoY increase. Category A slot machines revenue spiked 7 percent to €3.8 million, while the betting segment was up 5 percent YoY after pulling in €2.5 million. Despite recording YoY spikes in every segment and service, the revenue was impacted by the closure of several land-based operations after the amendments of the online gaming law about ten months ago.
Lithuanian Gambling Authority continues strict monitoring
As gambling activity across Lithuania rises steadily, the regulator has to keep up and maintain its regulatory and supervisory standards. After the online gaming law amendments in July last year, several iGaming operators will be looking to apply for gambling permits in the Baltic nation to expand their operations across Europe. However, there will also be quite a few gambling operators who try to enter the nation’s gambling market without a valid license. Ensuring the banishment of entities that threaten the integrity of its regulating gambling market will be one of the most critical tasks for the Lithuanian Gambling Authority.
In addition, the regulator also monitors licensed operators to check if they comply with the rules and regulations specified in the country’s Gambling Act. Due to a lackadaisical approach, many licensed operators in Lithuania have been slapped with a fine over the past few years. Top Sport is one of those operators which has been fined multiple times. Three fines were levied on the operator last year, and three more were imposed in this year’s first quarter. All were ordained because of different violations, including gambling advertising and improper CCTV camera installation.
Another licensed operator, Amber Gaming, has been fined four times since the start of last year. The fines were imposed for violations that included gambling advertising, offering their services to players outside the jurisdiction, and offering bets that are prohibited in Lithuania. Since there were two offenses related to advertising, the regulator also issued a stern warning saying that another similar violation could lead to a suspension of the operator’s gambling permit. Amber Gaming paid a little over €44,000 in fines for all these violations, while Top Sport paid €55,000. Both operators must be cautious, as their licenses will be at stake if any more violations are detected.
