The Olympic Entertainment Group (OEG) has announced that it will close down some of its venues in Lithuania in order to cut losses.
Because of Lithuanian gambling tax increase that happened earlier this year, OEG decided to close down nine betting shops and two casino arcade. It seems that OEG cannot maintain a large number of venues in a country that is bent on severely taxing operators.
Some time ago, the Lithuanian government increased the tax on bingo, arcade and betting to 18 % and it also announced that all forms of online gambling will be obliged to pay a fixed 13% revenue tax.
“Initiatives to aggressively change the tax environment not only create uncertainty but have also forced us to rethink and change our business model. We will move the activity from the closed facilities to other operating units, such as betting shops, casinos or the remote gambling platform. This is how we respond to changing market conditions so that we can ensure the sustainability of our business through legal action,” Saulius Petravičius, OEG MD for Lithuania, said.