Category: Competition law

Stop sign for gambling advertising: what will change and why does it matter?

Posted on by avocad_bxgv12hf

At the end of last year, the Seimas took a decisive step by approving significant amendments to the Law on Gambling, which will fundamentally change the rules on gambling advertising in Lithuania as of 1 July 2025. A strict ban on advertising will be introduced. Why is this? Gambling has grown in popularity among young people in particular and has led to a number of extremely strong addictions and severe consequences. According to Karolína Briliūtė, a lawyer at AVOCAD, these changes are not only a legal innovation, but also an important signal to society as a whole.

According to statistics, the number of gambling participants in Lithuania is growing rapidly, especially among 18-24 year olds. Gambling addiction is often the result of constant exposure to advertising that creates a false impression of easy winnings and enrichment, or just a harmless pastime.

"The changes to the law not only prevent manipulative advertising, but also send a clear message to the public: gambling is a risky activity that must be strictly controlled. The stricter regulation in Lithuania is also in line with the trend in European Union countries: more and more countries are introducing restrictions or bans on gambling advertising, especially to protect minors and other vulnerable consumers," she stressed.

Current regulation

Currently, gambling advertising is regulated under the Gambling Law, which prohibits gambling advertising except for the names of companies organising gambling, trademarks and the types of gambling organised. Any additional written, visual or auditory information is prohibited. Advertising may not be directed at minors or vulnerable groups.

"In practice, however, gambling organisers find ways to circumvent these prohibitions by using other forms of advertising, such as opinion leaders, social networks, sponsorship agreements or promotional games where participation indirectly encouraged gambling," says Karolina Briliūtė.

New rules on 1 July 2025

AVOCAD's lawyer points out that new, much stricter rules on gambling advertising will come into force from 1 July 2025. Not only will the location of advertising be restricted, but also its content, duration and form. "This is just a first step: there is a transitional period to adapt, but from 1 January 2028 there will be even tighter restrictions. There are only a few exceptions - for example, advertising will only be allowed to appear on the websites of gambling operators or in gambling venues themselves, and only under strict conditions. There will also be a complete ban on any public events, activities or even sponsorship of legal or natural persons on behalf of gambling companies. The changes are significant - it is worth preparing in advance," warns K. Briliūtė.

How much will ignoring the rules cost?

Currently, illegal gambling advertising can result in a fine of between 0.1% and 1% of the company's previous year's revenue (calculated on the amount staked minus the winnings paid out). However, the amount may not be less than EUR 6 000 or more than EUR 25 000. If the infringement is repeated within a year, the fine doubles from €12,000 to €50,000.

From 1 July 2025, the penalties will be even stricter, with fines rising to 3-5% of annual income. This will make the risk of advertising gambling outside the rules even more costly.

Lithuania in the context of the European Union

There is no single piece of legislation governing gambling advertising in the EU, so each country imposes its own restrictions, based on EU rules on public health and consumer protection.

Here are some examples:

  • Italy has completely banned all gambling advertising since 2019 under the Dignity Decree;
  • In Spain, advertising is only allowed at night - between 1am and 5am;
  • Belgium will almost completely ban gambling advertising from 2023, and from 2025 it will also be banned in stadiums and sports events.

The new amendments to the Lithuanian law put the country among the EU countries with the strictest restrictions on gambling advertising. "This is not only an attempt to match the best practices, but also a strong step towards social responsibility. Lithuania stands out not only in terms of the scope of the restrictions, but also in terms of the strict liability measures provided for," says the lawyer.

How to prepare for business?

AVOCAD lawyer Karolina Briliūtė advises gambling organisers and related businesses to take proactive steps to adapt to the new legislation in time:

  • Review all contracts with advertising agencies, opinion leaders, sponsorship partners and other content creators. Make sure they don't contain terms that would be illegal after 1 July 2025.
  • Discontinue or modify campaigns that could be considered gambling advertising, even if they are presented as "informative".
  • Consult legal advice on risk assessment and compliance, especially if indirect advertising channels (brands, partnerships, etc.) are used.
  • Communicate clearly with staff and partners about the new legal framework and the possible consequences for non-compliance.
  • Invest in responsible gambling tools, which could be presented as educational content on addiction prevention rather than as advertising, provided this is in line with the new regulation.

According to Karolina Briliūtė, these actions will not only help avoid legal consequences, but will also strengthen the company's reputation as a socially responsible market player.

From 1 July 2025. A transitional period will apply in Lithuania until 1 January 2028, when even stricter restrictions will start to apply. This is a significant step towards strengthening public health protection and reducing the risk of gambling addiction. While these changes may present additional challenges for business, they are necessary for the long-term well-being of society. Society, especially the younger generation, should be protected from forming risky consumption habits and gambling should not be presented as a consequence-free pastime.

What can you do to protect yourself from unfair competition? 

Posted on by avocad_bxgv12hf

Around 14-16 thousand new legal entities are registered in Lithuania every year. For example, in 2023, 15.7 thousand new companies were registered, the highest number in the last 25 years.

Not to mention those who provide a range of services on a self-employed basis. Competition is fierce, professionals have a lot of choice and often migrate between different companies in the same field in search of a change, a higher salary or a friendlier team. In many cases, the newcomer not only has specific knowledge of the competitors' company and its characteristics, but also a close relationship with the clients of the former employer.

They are particularly welcome by competitors, even though they may not realise that they are unfairly competing with their previous employer or giving the new employer the opportunity to do so. Jonas Zaronskis , Partner at AVOCAD, tells us what company information is protected by law and what an employer can do to protect itself against unfair competition .

What company information is protected by law?

In a company, some information is usually protected by law (e.g. trade secrets) and the rest is protected by special agreements and contracts. Trade secrets are confidential data which are specific and highly significant and the use of which could in any way prejudice the rights and legitimate interests of the rightful owner of the information. Even after the termination of the employment relationship, a business secret is protected for a period of time in accordance with the law and may not be used for any purpose. According to case-law, information is considered to be a trade secret if it meets three requirements: secrecy, value (commercial value) and whether reasonable steps have been taken to preserve the information. Thus, company managers should bear in mind that the more valuable the particular information constituting a trade secret is, the more intensive the actions taken by the owner of the information to protect it must be in order for the protection to be considered reasonable.

It is very important to note that, according to case law, a company's customer list is also a trade secret. Customer data is to be protected as a trade secret if it contains information other than the name of the customer that is not available to the public, such as contact persons, decision makers, business practices, technical information to assist in the operation of the business, service and quality requirements, planned projects, solvency etc. Thus, if you leave your job and take your former employer's customers with you, you may face significant legal consequences.

Agreements on confidential information

In some cases, companies choose to include in the employment contract or in a separate agreement certain data and conditions that are treated as confidential information within the company. The agreement on the protection of confidential information must specify the data constituting the confidential information, the duration of the agreement on the protection of confidential information, and the employer's obligations to assist the employee in maintaining the confidentiality of this information. The employer and the employee may agree in the agreement on penalties for non-performance or improper performance of the agreement. The agreement on the protection of confidential information shall be valid for a period of one year after the termination of the employment relationship, unless the parties to the employment contract agree on a longer period.

When signing these types of agreements, company directors should bear in mind that the court assesses not only whether the specific confidentiality agreement has been respected, but also whether the information included in the agreement was sufficiently important and whether sufficient care was taken to preserve that information.

In practice, the terms "business secret" and "confidential information" are often used synonymously, but the relationship between these types of information is relevant for the purposes of deciding on the consequences of the disclosure or use of such information. In essence, a trade secret is a type of confidential information, but confidential information is not necessarily protected as a trade secret. An obligation to protect confidential information normally exists where it is provided for in a contract.

Is it better to patent the information or hide it as a trade secret?

However, there are two ways to protect information - you can hide it (e.g. trade secrets, confidentiality agreements, etc.) or you can make it public (e.g. patents).

As a way of protecting information, a trade secret has a number of significant advantages: the information does not have to be disclosed to anyone (e.g. registered in public registers); it is not subject to strict formal requirements (e.g. novelty, originality); etc. In addition, legal protection of trade secrets is open-ended.

So why patent information that could already be a trade secret? Trade secrets have several drawbacks: there is always the possibility that another entity will discover or create the trade secret information on its own, there is also the possibility that the information will be disclosed to another entity in a legitimate attempt to reproduce it (e.g. by trying to replicate the recipe of a drink), and there is the possibility that the trade secret may be disclosed inadvertently or intentionally.

A patent ensures that only you can make, sell or otherwise use the invention. So only you will make a profit from selling and using it. This protects the money you have invested in the invention, and you can always demand that competitors do not use the invention and pay damages. However, the owner of the invention can only enjoy this exclusive right for 20 years. Since a patent is only valid for 20 years and a trade secret is protected indefinitely, very exclusive products, such as the recipe for a Coca-Cola drink, are protected by trade secrets and not by patents.

So basically, the way you choose to protect information depends on the information itself, its importance and even the nature of your business.