OEG to Shut Nine Betting Shops and Two Casino Arcades in Lithuania
The Olympic Entertainment Group (OEG) has confirmed that it will reduce its Lithuanian portfolio by closing down nine betting shops and two casino arcades.
The company’s management has decided to lighten its presence in Lithuania after tax hikes on Lithuanian retail verticals were announced earlier this year. The OEG finds it untenable to continue operations at the specific betting shops.
The Lithuanian government has passed an amendment that would effectively increase the tax on bingo, arcade and betting to 18% from 15%. All forms of online gambling activities will have 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.