Published on 06/03/2025 10:35:40
Lithuania's gambling industry is undergoing a quiet transformation. It is driven not by domestic policy liberalization, but by a convergence of consumer behavior, digital innovation, and a growing global market for regulated online betting. Restrictive local laws and the absence of incentives such as bonuses in Lithuanian casinos have inadvertently positioned Lithuania as a prime user base for foreign operators, in place of a leader in internal market development.
Currently, Lithuanian casinos are prohibited from offering bonuses, free spins, or even loyalty programs due to national regulations enforced by the Gaming Supervisory Authority. This limitation is prompting a mass move toward international platforms. The result? A multi-million euro market funneling activity offshore with all the potential of becoming a billion-dollar industry if redirected strategically.
According to data from Statista, the online casino industry in Lithuania is anticipated to experience consistent growth, with revenues estimated to hit approximately €376.2 million by 2025 and potentially increasing further to around €424.53 million by 2028.
Lithuania's rigid stance on gambling promotions is anchored in the current Gambling Law and enforced by the Gaming Supervisory Authority (LPT). The law explicitly forbids the advertising of any gambling-related incentives on social media, TV, or radio. Licensed operators within the country are barred from offering cash bonuses, free spins, or loyalty rewards, effectively removing any promotional tools to attract or retain players. Currently, Lithuania strictly prohibits the promotion of gambling through any form of advertising content.
Some bonus links still circulate online, but these redirect to foreign casinos. These platforms, operating outside Lithuania’s jurisdiction, can legally provide incentives and retain a competitive edge in player acquisition. With increasing access to VPNs and proxy servers, many Lithuanian users navigate past these restrictions to register and bet on these international sites.
This regulatory vacuum has sparked growing discussion within the industry about the need for reform. Stakeholders argue that even modest changes, such as allowing limited, tightly regulated bonus incentives, could help redirect gambling activity back to domestic operators. By reintroducing competitive tools like promotional offers under strict oversight, Lithuania could potentially reclaim a significant share of its gambling traffic and capture millions in currently lost tax revenue. Such measures would not only level the playing field for local license holders but also enhance consumer protections by steering users toward regulated environments.
To better understand Lithuania’s regulatory challenges and potential paths forward, it's beneficial to examine approaches from other European nations navigating similar growth in online gambling markets.
Sweden’s 2019 Gambling Act introduced tight regulations emphasizing responsible gambling and strict advertising standards. Bonuses are permitted, but they're limited exclusively to new users. That prevents promotional excesses while guaranteeing regulated operators remain attractive. This approach effectively curbs offshore activity by providing regulated alternatives to consumers.
Denmark has established a competitive market through moderate taxation, a 28% Gross Gaming Revenue (GGR) tax, and controlled promotional allowances. Danish casinos can legally offer deposit bonuses and loyalty schemes, closely monitored by regulators. This regulatory balance has successfully retained players domestically and limited offshore competition.
The Netherlands introduced a structured licensing framework for online gambling in 2021. They emphasise responsible gambling and transparent promotional rules. (Source: https://nltimes.nl/2025/04/16/legalization-online-gambling-netherlands-need-know) The Dutch Gaming Authority (KSA) allows bonuses under strict conditions. That attracts consumers from unregulated platforms and increases tax revenue, while prioritizing consumer protection.
Countries around the world are experimenting with diverse strategies to manage the rapid growth of online gambling, many of which offer relevant insights for Lithuania. In Latin America, indirect taxation is emerging as a key regulatory tool. Peru, for instance, imposes a 1% Selective Consumption Tax (ISC) on players who bet on foreign platforms, moving responsibility to individuals rather than operators. As highlighted by Gamble Insiders in comparative study “Casino Winnings Tax in Latin America: A Detailed Comparison“, “The burden falls on the player: they must periodically self-assess the 1%.” (Source: https://gambleinsiders.com/casino/guia-de-casinos/impuesto-ganancias-casino-latinoamerica)
This approach incentivizes users to migrate to licensed domestic platforms without outright banning offshore activity. Meanwhile, in the United States, regulation is state-driven. New Jersey and Pennsylvania, for example, allow bonuses and promotions under strict oversight. They foster a competitive yet controlled environment. Australia similarly regulates online gambling at the federal level through initiatives such as the National Consumer Protection Framework for Online Wagering. This framework includes mandatory self-exclusion tools, restrictions on credit-based gambling, and a suite of resources designed to help individuals manage their online betting behavior responsibly.
By considering these models, Lithuania could find valuable insights. Adopting a limited but regulated promotional structure similar to Sweden or Denmark could significantly reduce offshore gambling, secure better player protection, and improve domestic market growth. Together, these models show that Lithuania doesn’t need to choose between control and growth. Balanced, well-targeted reforms can achieve both.
With local bonuses banned and foreign operators unconstrained, a significant portion of Lithuanian gambling activity occurs on offshore platforms. This creates a dual loss. That is taxable income disappears from the national budget, and consumer protections are diminished, as these sites fall outside LPT regulation.
Lithuania’s bonus ban is likely intended to curb problem gambling, it may have the opposite effect. Foreign platforms often lack rigorous KYC and responsible gambling tools. Furthermore, unregulated bonuses may promote excessive play without the safeguards a national platform might implement.
Lithuanian-licensed casinos operate at a severe disadvantage, unable to match the incentives provided by competitors. This stifles competition, reduces consumer choice, and discourages innovation in the domestic market. In contrast, countries like Colombia and Brazil are fostering competitive, responsible ecosystems that encourage growth and compliance simultaneously.
The current policy appears unsustainable in the long term. With increasing pressure from both players and prospective local operators, there is growing momentum to re-evaluate Lithuania’s strict stance. A possible middle ground might involve limited, highly-regulated bonuses, such as capped free spins or targeted loyalty points, accompanied by stringent advertising controls.
As seen in Peru and Brazil, transparent tax models and controlled promotional frameworks can coexist, providing protection without driving users underground. Lithuania could adapt such hybrid models to reclaim its digital gambling audience.
Lithuania’s rigid gambling laws, particularly its prohibition of bonuses, have created a regulatory paradox. That is the intention to protect players is pushing them toward unregulated environments. If Lithuania revises its bonus policies and implements a balanced tax and compliance regime, it could convert this regulatory gap into a billion-euro opportunity.
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