Version: 10052004
Editor: Franka Pals
Publisher: Novamedia
Disclaimer: Novamedia disclaims all liability for information provided within the ”Novamedia European Gaming and Lottery Files”.The information is supplied by independent journalistic sources. No parts of these files may be reproduced in any form by print, photo print, microfilm or otherwise, or re-distributed electronically in any form without written permission from the publisher.
Latvia is located in Eastern Europe, on the coast of the Baltic Sea, between Estonia and Lithuania. After a brief period of independence between the two World Wars, Latvia was annexed by the USSR in 1940. It re-established its independence in 1991 following the break-up of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 30% of the population) remains of concern to Moscow. Since the Republic of Latvia regained its independence the government of the Republic of Latvia has implemented economic reforms based on principles of free trade, with the goal of integrating Latvia into economical, political and cultural spheres of Europe.
On September 17, 1991, the Republic of Latvia was granted full membership in the United Nations. In May 1992 Latvia joined the International Monetary Fund and in February 1994 the Government of Latvia signed the NATO's Partnership for Peace Program. Around the same time, Latvia signed a free trade agreement with the EU. Latvia has also free trade agreements with the EFTA countries, the Czech Republic, Slovakia, Slovenia, Estonia and Lithuania.
On February 10, 1995 the Republic of Latvia was granted membership in the Council of Europe. In 1999 Latvia has joined the World Trade Organisation. In December 1999 EU Council invited Latvia to start accession negotiations into the European Union.
Latvia is a parliamentary democracy, based on civil law system. Current 7th Saeima - Parliament of the Republic of Latvia has been elected in 1998. Riga, the capital, is also the largest city with 761 000 (1,10,2000) residents. Membership in International organisation: EBRD, IBRD, IMF, IFC, ISO, UN, UNCTAD, WCO, WIPO, WTO.
The common language is Latvian. Russian, English and German are also widely spoken.
Latvia was named among the best second-group EU aspirants during the fourth meeting of the Latvian-EU association council in Brussels. Latvia and Lithuania were likely to catch up with the so-called fast-track candidates.
On November 3, 1997, the Riga Stock Exchange started continuous trading at variable prices. The Riga Stock Exchange is first among the Baltic exchanges to offer its members a fully automated service for order execution. Investors are able to see the market depth during the session, and buy and sell securities on-line through their brokers
| Population: | 2,348,784 (July 2003 est.) |
|---|---|
| Age Structure | 0-14 years: 15.1% (male 180,976; female 172,988) |
| Currency: | 1 LVL = 0.67 Euro |
| GPD | purchasing power parity - $20.99 billion |
| Internet: | 312,000 users (2001) Among the Thirteen Eastern and Central European countries that areseeking membership into the European Union (UU), Latvia andLithuania ranked among the last in terms of internet users. Theyaccounted for only 6,1% of the country's population in 2000, accord-ing to a survey carried out by the EU statistical office Eurostat. |
| Telephone | Fixed lines: 30 per 100 inhabitants(2002 est.) |
| Mobile | 1.013 million mobile phone users meaning an 42% penetration(2004 est.) |
| Lottery Sales: | Per capita lottery sales: about $2 dollar in 2000 |
The gambling market began its rapid development in early 90s after Latvia's independence, it was then when the first gambling events in Latvia were organised, it was in the summer of 1991 that the first casino was registered. At that time the number of companies that organised different kinds of lotteries also increased. But in that period there was no legislation to the procedures of the lotteries and gambling organisation and the state institutions failed to supervise and control the market of lotteries and gambling. Its development occurred spontaneously and was not regulated. In this period many small companies were involved in organising lotteries and gambling, which could not always ensure the organisation of these games on the necessary level. Therefore the gaming business was discredited and the players suffered. Also, state revenues from lotteries and gambling were very low.
To change that situation and to keep the organisation of lotteries and gambling under very strict supervision and government control, as well as to create a special taxing system, the work on legislative acts regulating lotteries and gambling organisation, supervision and control started in 1993. In June 1994 the Saeima (Parliament) of the Republic of Latvia passed two laws 'On Lotteries and Gambling' and 'On Lotter ies and Gambling Tax and Duty'. Those laws completely changed the situation in the gambling market and secured a correct and a regulated development of the market. Until those laws were enacted there was no special institution to deal with supervision on the organisation of lotteries and gambling. Control and licensing of lotteries and gambling were at the same time carried out by Ministry of Finance, Ministry of Internal Affairs and local authorities. When the law was passed, only one Ministry, the Ministry of Finance, was responsible. As in most European countries a special state institution was in charge for the supervision of the organisation of lotteries and gambling, then, considering the experience of those countries, in 1997 the work was begun on establishment of such a special institution, which would deal with the supervision and control of lotteries and gambling.
This establishment is called the: Ministry of Finance Lotteries and Gambling Supervisory Inspection
The Ministry of Finance Lotteries and Gambling Supervisory Inspection is an independent institution of state control and supervision that carries out its work under the control of Ministry of Finance. The Cabinet of Ministers appoints the director of the Inspection after a nomination of the Minister of Finance. On December 2, 1997 the Cabinet of Ministers instated the regulation of Ministry of Finance Lotteries and Gambling Supervisory Inspection. The Inspection began its actual work on January 1, 1998.
The Lotteries and Gambling Supervisory Inspection has two departments:
The aim of the Lotteries and Gambling Supervisory Inspection is to ensure control and execution of the laws and other legislative acts, that are regulating the lotteries and gambling industry. The Inspection has the following functions:
The Law 'On Lotteries and Gambling' provides that gambling and lotteries in Latvia can be organised only after receiving a special license. The Inspection regularly considers applications and all the necessary documents to pass a decision either to issue a license or to refuse with a motivation to issue a license. The special licenses for the organisation of lotteries and gambling are renewed and reregistered. Till the end of 2000 the following operations in lotteries and gambling market are registered and issued:
The registration of gambling equipment is carried out in cooperation with State Revenue Service. The inspection carries out registration of gambling equipment and the issuing of labelling marks. To ensure correct payment of taxes, accounting of gambling equipment, use of legal gaming programs and assessment of the conformity of equipment, on the grounds of instructions of the Cabinet of Ministers, July 18, 2000, Nr. 237, 'On the Issuing of Labelling Marks for Gambling Equipment'.
Along with the establishment of Inspection a strict control over lotteries and gambling organisers, gambling equipment and gaming sites begun, although Inspection could start a supervision of market and penalise offenders of full value only in the fall of 1998, when the necessary amendments were made in the law 'On the Order of Suspension of the Activities of Enterprises, Institutions and Organisations' and in the Latvian Code on Administrative Violations.
In the year 2000 the officials of Inspection carried out 2411 check-ups of lotteries and gambling sites and discovered 434 faults in organisation. 54 protocols for administrative violations were produced upon violations of legislative acts and fines collected in the amount of LVL 5400. Organisers of lotteries and gambling regularly receive written warnings for not complying with the procedure of organisation of lotteries and gambling.
Latvia's lottery and gambling firms generated sales of 38.32 million lats (EUR 58.32 mln) during the first nine months of the year, up 25 percent on the same period last year, said lottery and gambling supervision inspectorate. Of the total amount, sales from gambling and lotteries amounted to 32.902 million lats, up 24.5 percent on the same period last year.
Gambling machines accounted for the lion's share of the revenues at 26.238 million lats, an increase of 22.5 percent on the same period last year. Gambling tables generated sales of 3.271 million lats, up 26.7 percent, and lotteries – 2.099 million lats, up 23.5 percent. Of gambling and lottery companies companies, Joker led by sales at 4.422 million lats, down 6.2 percent year-on-year, followed by Baltic Gaming 3.641 million lats, up 62.3 percent, Altea 3.637 million lats, up 33 percent.
In September there were 10,918 gambling machines in Latvia, up 1380 on the same period a year ago.
The state budget intake from lottery and gambling duty in the nine months was 4.683 million lats, up 121,000 lats over the planned amount. During the first nine months of 2003 as many as 21 firms were arranging gambling in Latvia. Only one entity – state-owned Latvijas Loto company, is arranging nation-wide lotteries in Latvia.
Source: Baltic News Service
In 2000 revenue for the national budget from lotteries and gambling totalled 4,621 million LVL which was 10,02% higher than planned. The following are revenues for Finance Ministry from lotteries and gambling tax and duty.
|
Planned revenue | Actual revenue | Result (+/-)% |
|---|---|---|---|
| 1997 | 2,400 | 2,542 | +0,142 |
| 1998 | 2,610 | 3,264 | +0,654 |
| 1999 | 4,065 | 4,215 | +0,150 |
| 2000 | 4,200 | 4,621 | +0,421 |
| 1997 | 1998 | 1999 | 2000 | |
|---|---|---|---|---|
| 1. Total turnover lotteries and gambling; | 19,561 | 25,410 | 30,036 | 3,597 |
| 1.1. turnover from lotteries and gambling: | 7,842 | 23,155 | 27,113 | 9,833 |
| 1.1.1. turnover from lotteries; | 1,847 | 2,127 | 2,104 | 2,045 |
| 1.1.2. turnover from gambling: | 15,968 | 21,028 | 25,009 | 7,788 |
| 1.1.2.1. turnover from slot machines; | 13,679 | 18,298 | 21,741 | 4,312 |
| 1.1.2.2. turnover from roulette, card and dice tables, bingo | 2,289 | 2,730 | 3,268 | 3,469 |
| 2. Profit from lotteries; | 0,093 | 0,057 | 0,085 | 0,032 |
| 3. Profit from gambling; | 1,671 | 1,905 | 1,000 | 1,868 |
| 4. Lotteries business profitability (%); | 4.96 | 2.70 | 4.06 | 1.54 |
| 5. Gambling business profitability(%); | 9.45 | 8.18 | 3.58 | 5.93 |
| 6. Lotteries and gambling tax and duty; | 2,542 | 3,265 | 4,258 | 4,620 |
| 6.1. lotteries tax and duty; | 0,128 | 0,166 | 0,198 | 0,212 |
| 6.2. gambling tax and duty; | 2,414 | 3,099 | 4,060 | 4,408 |
| 7. Number of license holders; | 22 | 22 | 21 | 21 |
| 7.1. lotteries licence holders; | 2 | 2 | 1 | 1 |
| 7.2. gambling license holders; | 20 | 19 | 20 | 21 |
| 8. Number of lotteries; | 8 | 11 | 10 | 13 |
| 9. Number of arcades; | 106 | 149 | 159 | 172 |
| 10.Number of casinos; | 22 | 23 | 21 | 22 |
| 11. Number of slot machines; | 7255 | 9131 | 10070 | 114259 |
| 12. Number of roulette tables; | 27 | 31 | 25 | 27 |
| 13. Number of card and dice tables; | 76 | 7 7 | 76 | 96 |
According to the law 'On Gambling and Lottery Taxes', adopted on 16 June 1994, gambling and lottery tax is levied on business entities that have obtained gambling licenses. The annual license due per company is LVL 50,000 or LVL 30,000 for engagement into gambling services. Lottery tax in amount of 6% is imposed on revenues from the sale of lottery tickets. Revenue from sale of instant lottery tickets is subject to 8% tax.
In 2003 the Saeima approved amendments to the law of governing lotteries and gambling games.
The amendments stipulate the procedure for the operation of interactive gambling. Companies that operate gambling by using means of telecommunications, for example the Internet, are required to apply for an appropriate license.
The share capital of such operators will have to be at least LVL 60 000. The gambling tax for interactive gambling games will be 10% of the paid-in and accepted sum of rates.
Source: Baltic News Service
According to local news sources Saeima deputies want to significantly limit the gambling business in Latvia.
The commission for budget and finance has recommended amendments to the Lotteries and gambling legislation.
But it advised the Saeima that it should not take actions until after an investigation on how the suggested amendments might influence the state budget and how the gambling business in Latvia is conducted.
In June 2003 Latvia had 441 gambling machine halls, up by 223 since the same time last year, 21 casinos, two bingo halls and 13 lottery stations.
Source: Baltic News Service
Website: www.latloto.lv
Latvijas Loto was established in 1972 as the filial of Sojuzsportloto. The most popular lotteries at that time were the number lottery Sportloto and the instant lottery Sprints. After regaining of independence of Latvia Sportloto was reorganised into the company Latvijas Loto. January 10, 1993 can be considered as the birthday of the national lottery - on this day the first draw of number lottery 5/35 took place. Gradually the company introduced the sales of instant lotteries.
In June 1996 Latvijas Loto was reorganised into the state joint stock company. Similarly with the most of the developed countries of the world, the sole owner of the Latvian national lottery company is the state. On February 1996 Latvijas Loto signed a cooperation agreement with the Swedish company EssNet AB on the installation and service of on-line lottery system in Latvia. On-line system in the lottery sales is used by most of developed countries of the world since it ensures high level games and safety of data as well as increases the speed of exchange of information.
On June 1, 2000, Latvijas Loto signed an agreement with EssNet AB regarding purchase of the installed on-line lottery system. According to the agreement Latvijas Loto has taken over the operations of EssNet in Latvia. On January 2001, Latvijas Loto started the sales of a new number lottery KENO and currently the company works on the development of a new on-line lottery, which will be introduced in the market in 2001 and 2002.
The existing lotteries are constantly updated to make them more attractive to the clients. In the nearest future it is expected to significantly increase the number of sales places with on-line connection. Latvijas Loto site is in the Latvian, Russian and the English language.
The total sales of Latvijas loto accounted for 2.1 million Lats (1.146 million US Dollars) in 1999. This has decreased a little over the years to 1.463 million lats (Almost 800.000 US Dollar).
All tickets of Latvijas Loto are manufactured abroad. This is done for safety reasons as well as that the equipment in Lithuania is not readily available. The most important cooperation partners of Latvijas Loto in the production of instant lottery tickets are the Swiss company Game Print, German company ORO Gewinnspiel Lose, Canadian company Polar Banknote and Byelorussian company NPM.
The manufacturer of the on-line system is the Swedish company EssNet AB. The services offered by EssNet AB include the production of a wide range of lottery products, as well as development, introduction, training, support and consultations on new lotteries. The lottery tickets of Latvijas Loto are sold in more than 1,400 outlets all over Latvia. Of course, such spread is possible only thanks to the cooperation partners.
LATLOTO 5/35 : Drawings are twice a week, on Wednesday and Saturday. Choose 5 numbers out of 35. A computer may choose the numbers also - in this case it will be a quick pick.
The price for one panel is 25 santims.
The stake of the game depends on the number of panels. It is possible to participate in 1, 2, 4, 8 or 16 draws.
DZOKER: the draw of additional Dzoker (Joker) game takes place simultaneously with the draw of LATLOTO 5/35 each Wednesday and Saturday on LTV-1. During the draw six digits of the coupon number are drawn. If the last two, three, four, five or six digits of the coupon number match with the drawn digits, you have won. A guaranteed winning for 6 winning numbers is LVL 50,000.
| 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|
| 5 | 20 | 200 | 2000 | 5000 |
KENO is a number lottery with a series of numbers from 1 up to 62 from which 20 numbers are drawn. By playing KENO it is possible to win from LVL 0.10 up to LVL 30,000. The player chooses with how many numbers (from 1 to 10) he wants to participate. The possible choices are LVL 0.10, 0.20, 0.30, 0.40, 0.50. The amount of the winning depends on the stake. The possible choices are: 1, 2, 3, 4, 6 or 12 draws. The price for participation in the lottery depends on the stake and the number of draws. (For example, if you have chosen the stake LVL 0.20 and participate in 3 draws, the price shall be LVL 0.20 x 3 = LVL 0.60).
y choosing only one number, the probability of winning is high, however, the amount of the winning - small. By choosing all 10 numbers the probability of winning will be not that high, however, the possible winning may 60,000 times exceed the payment for participating in the game. The prize fund is 46 % and it does not depend on the number of the chosen numbers. The draws of the number lottery KENO take place every day at 18.30 hours, except on Sundays and State holidays, at Latvijas Loto in the capital Riga. The winning numbers of the draw can be checked at any 'Loto on-line' sign (kiosks of Latvijas Loto, shops, etc.) terminal as well as on LTV-1.