Olympic Ent. faces Latvian closures after Riga gambling ban

Eastern European casino operator Olympic Entertainment Group (OEG) may have to close seven slots halls in its number one market after Latvian officials voted to ban gambling in certain areas.

On Tuesday, the Riga City Council in Latvia’s capital voted to ban all gambling halls in Riga’s historic center district, except those located in four- and five-star hotels. The vote followed a Supreme Court ruling supporting the council’s objections to a gambling operator’s desire to open a new venue in Riga’s old district.

The ban affects 41 gaming venues, each of which will require the council to prepare separate draft resolutions of closure. Once such orders are issued, the affected gambling halls will have five years to wrap up their affairs and cease operations.

Latvian Gaming Business Association advisor Arnis Verzemnieks claimed the city’s business district would suffer as a result of the closures due to reduced visitor traffic. Verzemnieks also complained that gaming operators were increasingly unable to make any long-term plans due to the unpredictable regulatory environment.