All Gambling Halls in Riga Threatened with Closure – Industry Raises Alarm

Following applications by three companies, the Constitutional Court (CC) has initiated a case concerning restrictions on gambling operations in Riga, the court announced.

This is not the first time the issue of gambling regulation in Riga has reached the CC. Just last year, the court ruled in another case that a blanket ban on gambling across the entire administrative territory of Riga was unconstitutional. Afterwards, the city council promised to propose a new mechanism for restricting gambling. That mechanism is now also under review by the court.

The new case was initiated on the basis of applications by SIA Alfor, SIA Klondaika and SIA Olympic Casino Latvia regarding sections 2 and 3 of the Riga City Council’s binding regulations “On Restrictions of Gambling Operations in the Administrative Territory of Riga” adopted on the 26th of March.

The contested provisions define the places and areas in Riga where gambling is not allowed, as well as the municipality’s actions in cases where permits have already been issued for locations where gambling is now prohibited.

Gambling is prohibited in municipal-owned properties, neighbourhood centres, educational institution premises and within 300 meters of them, as well as in railway stations, bus stations, airports and passenger ports, within 500 meters of such transport hubs and within 300 meters of other public transport stops. Restrictions also apply to certain functional zones, cultural monuments and protected areas defined in Riga’s spatial plan. However, the restrictions do not apply to four- and five-star hotels.

In addition, the contested provisions stipulate the cancellation of previously issued permits if gambling takes place in prohibited areas, and that any issued permit automatically expires five years after the relevant Riga City Council decision comes into force.

The applicant companies, which hold permits to operate gambling halls in Riga, argue that although the contested rules define specific places and areas where gambling is prohibited, in practice they amount to a blanket ban on such business throughout the city.

They argue that the restrictions limit business activity and property rights, and violate the principles of legal certainty and legitimate expectations. Therefore, they claim the rules are inconsistent with Articles 1 and 105 of the Constitution.

Article 1 states that Latvia is an independent democratic republic. Article 105 provides that everyone has the right to property, that property must not be used against the public interest and that property rights may only be restricted by law.

The Constitutional Court has invited the Riga City Council to submit a written response by the 27th of October, outlining the facts and legal reasoning. The case preparation deadline is the 27th of January, 2026. The court will decide on the type and date of proceedings after preparation.

As previously reported by LETA, the new gambling restriction rules in Riga entered into force on the 1st of April.

A five-year transition period is provided for the cancellation of previously issued permits.

After adopting the rules, municipal officials admitted that all currently known gambling halls are located in areas where gambling will be banned, meaning the new regulations foresee the closure of all existing gambling halls in Riga.

At the same time, the municipality emphasized that the restrictions do not cover the entire city and do not affect operators’ rights to open or expand gambling facilities in four- and five-star hotels.

The council also claimed that the rules were developed based on Constitutional Court recommendations and the results of public consultations held in February this year.

The Latvian Licensed Gambling Association had already announced in the spring that it would most likely challenge the new restrictions in the Constitutional Court, arguing that they are “neither proportionate nor lawful.”

Source: bnn-news.com