Concerns Grow Over Croatia’s Proposed Gambling Reforms
The Croatian Association of Game Operators (HUPIS) has voiced serious concerns over amendments to the Law on Games of Chance that are currently moving through the legislative process. According to the association, the proposed changes could create an unsustainable regulatory burden on the legal gambling market, with potentially damaging effects on the industry, employment, and government revenue.
Disagreement Over Regulatory Burdens
While HUPIS has expressed support for corporate social responsibility and consumer protection, it argues that the current reforms do not strike the right balance between protecting consumers and maintaining a thriving legal gambling market. The association has called on the Croatian authorities to consider the expert opinions of industry players and engage in dialogue to create more feasible and proportionate solutions.
The proposed bill includes several sweeping measures, such as a complete ban on self-service terminals in catering establishments, mandatory player identification at physical gambling locations, and the establishment of a central register for self-excluded individuals. These measures are to be managed under the authority of the Croatian Institute of Public Health. While the reforms aim to enhance consumer protection, HUPIS warns that they could ultimately harm the legal market.
Potential Impact on Physical Gambling Locations
One of the most contentious aspects of the proposed changes is the strict regulation of physical gambling venues. HUPIS has argued that these reforms, if passed in their current form, could lead to the closure of over 70% of physical gambling establishments in the country. This could result in significant job losses, with thousands of positions at risk within the industry.
The association also highlights the potential shift of gambling activity to unregulated channels, which could deprive the state of crucial tax revenue and undermine efforts to control the market. According to HUPIS, this would not only harm the legal industry but could also fuel the growth of the shadow economy.
Advertising and Licensing Restrictions
The proposed bill also includes a comprehensive ban on gambling advertising across various platforms, including the press, public spaces, and the external visibility of gambling establishments. Additionally, the law could impose harsh sanctions, including the revocation of operating licenses, for companies that fail to comply with new social responsibility standards. HUPIS argues that these measures do not differentiate between licensed operators and illegal ones, potentially penalizing those adhering to the law while allowing illicit operators to continue.
Concerns About Problem Gambling
While the industry has raised concerns about the proposed reforms, the government has emphasized the need for action due to rising concerns about problem gambling in Croatia. During the presentation of the bill to parliament, research was cited showing that around 5% of the adult population in Croatia suffers from significant gambling problems. Minister of Finance Marko Primorac further highlighted that a concerning 73% of high school students had gambled at least once, with 13% showing signs of serious gambling-related issues.