Lithuania is taking a bold step in its efforts to curb gambling-related harm by moving forward with a proposal to ban gambling advertisements. This new regulation, which was approved by the country’s parliament on Tuesday, marks a significant tightening of the country’s gambling advertisement laws. Set to take effect in July 2025, the decision places Lithuania among the growing list of European countries imposing stricter controls on gambling advertising amid increasing concerns about problem gambling.
A Stricter Approach to Gambling Ads
The new proposal passed with overwhelming support from Lithuanian lawmakers. It’s designed to reduce the prevalence of gambling advertisements, a sector that has grown rapidly in recent years. The law, set to come into force in 2025, reflects the ongoing debate across Europe about the role of gambling ads and their connection to the rise in gambling addiction and related harm.
While the regulation represents a tough stance, it does allow a temporary exemption for certain stakeholders, such as sports competitions and events, broadcasts, and sports clubs. These groups will have until January 1, 2028, to phase out their existing or future advertising partnerships with gambling companies. This gives them time to adjust to the upcoming changes, which could impact their revenue streams significantly.
Transitional Period and New Advertising Restrictions
As part of the implementation, a transitional period has been established. During this time, stakeholders involved in broadcasting or online media will be allowed a limited number of gambling ads. Specifically, there will be three betting ads of under 15 seconds for every hour of television, radio, or online content between 6:00 AM and 6:00 PM. After 6:00 PM until midnight, this will drop to two such ads per hour.
The temporary exemptions are intended to ease the financial impact on media organizations, especially given the revenue generated from gambling advertising. Lithuania’s government has also set aside €4 million to help mitigate any financial fallout as a result of these sweeping regulatory changes.
Financial Impact on the Gambling Industry
This move is part of Lithuania’s broader effort to recalibrate its gambling industry, which has seen a period of strong growth. In June, the government approved an increase in gambling taxes, raising the levy from 20% to 22%. The additional tax revenue is expected to bring in €4.4 million, a portion of which will likely be used to cushion the impact of the gambling ad restrictions.
However, while the government maintains that this small increase in tax will not affect the competitiveness of the gambling sector, some industry leaders are already expressing concerns. There is fear that the advertising restrictions, combined with higher taxes, may lead to some brands withdrawing from the market altogether. This could ultimately make Lithuania’s gambling sector less appealing to players and potentially harm its financial sustainability in the long run.
A Growing European Trend
Lithuania is not alone in its crackdown on gambling advertisements. Many European countries have begun to adopt stricter regulations in response to growing public concern about the dangers of gambling addiction. As the debate continues to heat up over the role of advertising in promoting gambling, Lithuania’s new laws could serve as a model for other countries looking to address this issue more aggressively.
The decision reflects a broader shift towards a more regulated gambling environment in Europe, where the balance between industry growth and consumer protection is being reassessed. While the impact of such regulatory changes is yet to be fully seen, Lithuania’s move is part of a growing trend to put the brakes on unrestrained gambling promotions.
