Potential Legal Challenges for Lithuania’s Incoming Gambling Advertising Ban

_{Lithuania's gambling advertising ban raises confusion over phased implementation and exemptions. (Image: Courtesy of Andrius Karaliunas)}

Legislation recently passed by the parliament of Lithuania to outlaw all gambling advertising in the nation of almost 2.9 million people could soon face ‘numerous legal disputes’ owing to confusion over its implementation as well as consternation linked to its many exemptions. 

The measure ratified by the 141-seat Parliament of Lithuania on November 5 is to ban the advertising of gambling via radio, television, and online from the first day of July while simultaneously raising the legal gambling age from 18 to 21 and giving the small country’s Gambling Control Authority regulator even more monitoring capabilities. 

However, the legislation, which will affect land-based and online casinos, is to be introduced in a phased manner by permitting sports competitions and broadcasts to continue featuring gambling advertisements until the end of 2027. 

This transitional period is to allow television, radio, and online channels to show as many as three gambling-related spots every hour between 6am and 6pm and up to two at other times of the day.  

Acting Aggravation  

It is this phased approach the President of the Lithuanian Lottery Association, Andrius Karaliunas, believes could lead to legal challenges even though the coalition government of Prime Minister Ingrida Simonyte earlier pledged to set aside up to €4 million ($4.24 million) to help assuage any shortfalls in broadcasters’ advertising revenues. 

Speaking to Casinos.com Karaliunas revealed the incoming advertising ban was formulated before October elections, in which the incumbent centre-right government of Simonyte was soundly defeated. 

He stated this unexpected turn of events led to a ‘rushed legislative process’ while considerations from a wide range of special interest groups resulted in ‘a complex system of exceptions.  

“The new gambling regulation is essentially a legacy issue left by the outgoing parliament for the new parliament to handle,” Karaliunas said. “The publicized goal was to restrict gambling advertising, but the legislation is now difficult to interpret and is expected to prompt numerous legal disputes over its application.” 

Tax Take 

Alongside a ban on gambling advertisements, the incoming legislation is to moreover boost the tax rate for operators up to 22%, although Karaliunas revealed to us during our interview that this is not set to impact Lithuania’s lottery sector as it is governed by separate rules. 

“The gambling tax rate is set to rise from 20% to 22% but this change lacks any substantial arguments or impact assessments to justify it,” Karaliunas said. 

“The lottery sector is regulated by a separate law known as the ‘Lottery law.’ Fortunately, this was not subject to the same rushed amendments caused by the political transition.”  

Confusing Circumstances 

During our interview, Karaliunas went on to describe the temporary carve-out for sports competitions and broadcasts as well as the transitional period for television, radio and online channels as ‘yet another result of the rushed legislative process’ and maintained these developments arose ‘at the last minute’ as politicians strove to ‘to push through a pre-election promise to reform gambling regulations.  

“The goal of these exceptions remains unclear, leaving little more to be said on this matter,” Karaliunas said. “There is limited information available on any calculations or rationale behind this phased approach. It appears to be a measure to ease pressure on the media and sports sectors by gradually phasing out gambling advertising but giving such enterprises three additional years to find alternatives for any lost revenues.”