In 2024, online casinos became more popular than gambling halls in Latvia for the first time
According to data from gambling operators for the past year, in 2024, interactive gambling, or online gambling, accounted for 51.4% of total gambling revenue. This is the first year in history in which online gambling, rather than gambling in physical halls, accounted for the largest share of the market.
This information appears in the 2024 Gambling Market Review published by the Lotteries and Gambling Supervisory Inspection.
Inspection head Signe Birne also points to this trend: “Trends in the gambling sector continue to persist: the volume of interactive gambling is growing, as confirmed by turnover, which in 2024 reached EUR 153.91 million—12.5% more than in 2023.”
Physical slot machines are losing popularity
As we can see, the increase in online casino turnover was also measured in double digits last year. Meanwhile, revenue from physical gambling machines fell by 5.8% in 2024, amounting to EUR 130.97 million.
The inspection notes that the number of physical gambling machines decreased by 558 units in 2024. Eighteen gambling halls also closed their doors. But how did the industry as a whole perform?
Total gambling industry revenue grew by 3.7%
Thanks precisely to the continued rapid growth in the popularity of online casinos and betting operators, total gambling industry revenue also increased, reaching nearly EUR 300 million. This figure is 3.7% higher than in 2023.
If we look at Latvia’s gambling market, we can conclude that 19 companies organized gambling in Latvia last year. Seventeen of them offered gambling online—namely, licensed online casinos and betting operators—while six organized in-person entertainment in gambling halls and casinos. Three companies accepted betting wagers in person.
In total, in December 2024, Latvia had two traditional, or land-based, casinos, 176 gambling halls, 76 betting shops, and one bingo hall.
Online casinos are becoming increasingly popular worldwide
It must be acknowledged that online casinos are growing rapidly not only in Latvia but throughout the world. The figures also demonstrate this. For example, globally, online gambling turnover has grown by 20% since 2020.
There are several reasons for such rapid growth. Even before the COVID-19 pandemic, online casinos had begun their worldwide advance, and the closure of physical casinos during the pandemic only strengthened this trend. With online casinos, along with the development of mobile internet networks and smart devices, it is possible to play at any time and place. It should be noted that no gambling hall can compete with the online casino slot selection, which numbers in the thousands. How large would a hall have to be to accommodate so many physical slot machines? Moreover, introducing new games that are more functionally interesting and visually appealing is faster and easier in online casinos.
Another important aspect is bonuses, especially registration or new-customer bonuses. Bonuses are rarely available in physical gambling halls and traditional casinos, whereas in online casinos they are standard practice. For example, all online casinos licensed in Latvia offer new customers risk-free spins. In many cases, newly registered customers can also receive a cashback bonus, thereby recovering part of the amount wagered or lost.
At the same time, traditional or land-based casinos undoubtedly have their own advantages. First and foremost, there is the special atmosphere and the opportunity to interact with people in person. Sometimes, luxurious casinos with a long history and impressive interiors are destinations in their own right for many travellers. Thus, we can say that this form of entertainment will certainly continue to exist in the near future.
The future of online casinos in Latvia and worldwide
In conclusion, we can say that 2024 was the first—but certainly not the last—year in which online casinos and betting operators accounted for the largest share of Latvia’s gambling market. Their popularity is expected to grow even further in the future. An important factor will also be the further progress of decisions adopted by the Riga City Council concerning the closure of gambling halls in central Riga. This could increase the online market share even more rapidly.
As we have already mentioned, online casinos have several advantages over gambling halls and traditional casinos. Industry experts also point to the increasingly widespread availability of the internet and smartphones worldwide, which has a positive impact on the online gambling industry. Consequently, it is forecast that the sector will grow by 10.5% annually by 2029. Moreover, growth is expected across all online gaming categories—online casino games, online betting, and poker. At the same time, we can say that traditional or land-based casinos will not disappear, although their market share will decline.
