The casino market in Lithuania was hit hard by the global recession, David Snook discovers.
Lithuania’s casino market has still not recouped the losses made during the global recession, while other sectors, such as the street market in arcades and sports betting and lotteries, are now back to 2007 levels.
Although fees for licences were reduced, the gaming tax imposed sharp increases in costs on the industry, up 50 per cent on tables and 33 per cent on slots. A contraction in the industry was the result, with some casinos closing, staff layoffs and two bankruptcies among operators.
“It has been hard work to overcome the challenges,” said major operator Saulius Petravicus, CEO at Olympic Casino. “We had to balance the costs to survive in a changing business environment. The casino sector still hasn’t reached its volumes from the pre-recession period.”
The largest of the Baltic States, Lithuania has the youngest gambling industry, only opening for legal operations in 2001, considerably after its neighbours, Estonia and Latvia.
The market has developed spontaneously, reaching 25 casinos by the end of 2007. Market forces have combined to reduce this to a situation where today there are 15 locations, six of them in the capital, Vilnius, three in the second city, Kaunas, three in Klaipeda, one in Panevezys and two in Siauliai.
This article can be read in full in the February issue of InterGaming.
