Inga Karpova, journalist with the Latvian newspaper Ziemeļlatvija, said that where initially the company wanted to have the casino in the city center, it had to look for alternative locations as the city center location was too close to schools.
"A refusal had been received earlier from the town managers of Smiltene. The Valka regional council decided in June that the location on Rujiena Street is a suitable one," Karpova said.
The nearest educational establishment to the Rujiena Street location is the Valga County Center for Vocational Education, situated on the Estonian side of the border.
The Lithuanian company wishes to operate a casino with 20 slot machines and the possibility for sports betting.
The border town of Valka is seeing booze sales boom as Estonians and, increasingly, Finns are coming to the country to stock up on cheaper alcohol.