More Than 80% of the Latvians Cannot Tell Licensed Gambling from Illegal Operators

Of these respondents, 56% stated they definitely do not know how to tell the difference, while 26% said they rather do not know. Only 3% claimed they definitely know how to distinguish legal sites from illegal ones, and 8% said they rather know.

Over the past three years, this figure has increased by 10 percentage points. In 2022, 71% of respondents reported not knowing the difference, rising slightly to 72% in 2023.

The findings align with additional data showing a growing share of players who do not consider whether a gambling operator holds a Latvian state license and operates within the regulated market. In 2022, 8.8% of respondents said they did not care about licensing status; by 2025, that figure had climbed to 24.8%**.

“Survey results may point to a potential expansion of the shadow economy within Latvia’s interactive gambling segment in the coming years,” said Dainis Niedra, Operational Manager at Entain (Optibet, Klondaika). According to Niedra, one contributing factor is the reduced competitiveness of licensed operators compared to illegal websites. He highlighted what he described as unfair personal income tax (PIT) regulation—applied only in Latvia—which taxes real winnings and, in certain cases, losses. In addition, strict advertising and information restrictions further weaken the position of licensed operators.

“It is virtually impossible to inform users which websites are legal and safe and which fail to follow responsible gaming principles—without explicitly naming brands on both sides,” he added.

The survey also found that 47% of the population is unaware that both licensed and unlicensed gambling sites are accessible online in Latvia. Meanwhile, 41% said they are aware of this, and 12% were unsure.

Niedra emphasized that the fact that nearly half of the population is unaware that some online gambling sites may be illegal is a direct consequence of excessive information and advertising restrictions imposed on licensed operators.

It is worth noting that the European Commission has recommended that Member States inform players about available legal offers. The Commission has stated that many players either do not know or disregard whether and where gambling services are licensed. To ensure compliance with gambling regulations, consumers must be able to distinguish between legal and illegal online gambling services.

The European Commission further advises Member States to explore ways to encourage users to play on authorized operators’ websites rather than on unlicensed platforms. It also warns that overly restrictive advertising requirements may unintentionally undermine consumer protection by pushing players toward the black market.