Our client Olympic Casino Latvia has secured a legal victory, with a court ruling that authorities’ attempt to evade responsibility by delaying compensation payments was unlawful.
About the case
The origin of the dispute goes back to the spring of 2020, when the Lotteries and Gambling Supervisory Inspectorate (IAUI), in response to the rapid spread of Covid-19, decided to suspend interactive gambling licenses. This decision was later declared illegal by the courts, paving the way for the companies affected to seek damages. However, the current proceedings have exposed a deeper systemic issue within public administration, as reluctance to authorise compensation has resulted in a significant increase in the amount owed.
On 23 December 2025, the Administrative District Court confirmed that the Lotteries and Gambling Supervisory Inspectorate’s 2020 decision to suspend the client’s interactive gambling license was unlawful, establishing a clear basis for compensation under Latvian law. This judgment reinforces a fundamental principle: the state is responsible for damages caused by unlawful administrative acts, regardless of whether the error stems from the actions of the authorities themselves or from gaps in the legislation.
In its reasoning, the court accepted the economic assessment of the damages, which was supported by a KPMG Baltics report, as credible and objective. The methodology relied on historical financial data and modelled performance during the restriction period, including expected market growth and shifts in consumer behaviour. This approach ensured that restitution reflected the real impact of the unlawful suspension, resulting in full approval of claims for lost profit and growth effect, plus adjustments for inflation.
This case illustrates the significant risks posed by legislation that lacks clarity and constitutional alignment. When statutory provisions fail to comply with constitutional principles, businesses incur losses, and, ultimately, the financial burden is shifted to taxpayers. It reinforces that legal certainty and the principle of quality lawmaking are not abstract ideals, but essential safeguards with tangible economic consequences.
Our team and involvement
Our attorneys were involved in supporting the client by conducting, together with experts from KPMG Baltics, an in-depth analysis to determine the most appropriate methodology for calculation of damages, including segmentation of the different layers of damages and their causality in relation to the unlawful decision, and representing this position during the court proceedings, among other activities. Success in the case was made possible in large part thanks to the focused support of the head of our client’s legal department, Pāvels Tjuševs.
Our dedicated team included counsel Jānis Sarāns-Reneslācis, supported by partner Ieva Andersone.
