Riga's gambling establishments have had a prohibition overturned by the Latvian judiciary.

In a significant turn of events, the Constitutional Court of Latvia has ruled against the Riga City Council's decision to close 139 gambling venues. The ruling, made in response to an appeal from affected operators, determines that the council's actions breached constitutional law protecting the contractual rights of operators holding permits granted by the council.

The Riga City Council's decision, issued due to concerns for the safety and well-being of approximately 80,000 vulnerable residents affected by problem gambling, aimed to restrict gambling to four- and five-star hotels by 2025. However, the court concluded that the council's actions violated constitutional law, as they overlooked certain requirements and technical aspects in the process of regulating gambling.

Commercial activities, including gambling, are permitted within the affected zones according to the city plan. The ruling marks a setback for the Riga City Council, which has faced criticism for its handling of the gambling regulation process.

Meanwhile, UK-listed 888 Holdings has sold its Latvian operations, specifically MrGreen.LV and WilliamHill.LV, to Paf for €28 million. Paf, a gambling operator owned by the regional government of Finland's Åland Islands, completed the sale in June. The sale marks a strategic move for 888 Holdings, allowing the company to focus on its core markets.

The gambling operators' associations have legally challenged the Riga City Council's decision to close the 139 gambling halls. Operators including Admiral Klubs, Alfors, Joker Ltd, and Olympic Casino Latvia filed an appeal, adding to the growing controversy surrounding the Riga City Council's handling of the gambling regulation process.

As the situation unfolds, it remains to be seen how the Riga City Council will respond to the court's ruling and whether further changes will be made to Latvia's gambling regulations.

Riga's gambling establishments have had a prohibition overturned by the Latvian judiciary.