Lithuania will move forward with a proposal to restrict gambling advertisements in the country after the country’s parliament approved a set of measures on Tuesday that will significantly tighten the regulatory framework governing such ads.
The proposal was passed with an overwhelming majority and the measure is expected to come into effect in July 2025, making Lithuania the latest European country that has chosen to take a fairly strict approach towards gambling advertisement at a time when the debate rages about the role of gambling ads on the impact of problem-gambling and gambling-related harm.
A temporary exemption has been granted by lawmakers to sports competitions and events, as well as broadcasts and sports clubs. These organizations and stakeholders will have until January 1, 2028, to conclude any existing or future partnership with a gambling company that specifically involves advertising.
The transitional period, which was also approved by legislators separately, allows three betting ads of under 15 seconds for every hour of television, radio, or online between 6:00 and 18:00, and then two such ads between 18:00 and midnight.
Lithuania is also aware of the potential financial harm that could impact media stakeholders, and the country’s budget has set aside €4m to help alleviate any fallout caused by the change of rules surrounding gambling advertisements.
Lithuania has been forging ahead with a series of decisions designed to recalibrate the country’s gambling industry, which has been enjoying a fairly strong going. In June, lawmakers similarly voted in favor of passing a gambling industry tax hike, upping the levy from 20% to 22% presently.
According to lawmakers, the increased tax rate will bring €4.4m, so theoretically enough to help stakeholders cushion the hit to their advertisement revenue.
The government has insisted that the small change in taxation would not impinge on the sector’s competitiveness, but industry figureheads have already voiced their concern that this could lead to a withdrawal of some brands from the market, making it less appealing to players.
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