The Latvian government has decided to ban online gambling during the quarantine period. Politicians are afraid that people forced to stay at home will spend too much on bets. However, representatives of online casinos noted that such a decision could lead to litigation demanding compensation.
The intentions of the government are good. People can really get over-engaged in the game, stuck at home for long days. However, this decision will only add to the list of industries that will then need financial assistance to recover from the shock.
Moreover, the head of the Latvian Internet Gambling Association noted that despite concerns, operators have seen a 26% drop in the number of active players since the state of emergency was declared on March 14th. According to the spokesman, the income that they can receive will simply go to the side of unlicensed operators. The local online gambling market will die and the state will lose millions in taxes.
The CEO of Enlabs AB, which owns the Optibet brand, said this was a bad decision. And it will lead to compensation claims of up to 160 million euros. He speaks of an unjustified violation of the rights of operators who own a Latvian license. And this seems especially unfair, given that the state does not touch the lotteries, giving them a huge advantage.
Instead of banning online gambling, the government could consider imposing limits on how much players can play by time or how much money they can spend.
