Montenegro Proposes New Gambling Legislation
Montenegro’s Ministry of Finance is advancing efforts to overhaul the country’s gambling legislation, with a “new legal solution for gambling” under development to modernize the Law on Games of Chance. The proposed reforms aim to establish a secure and responsible gambling framework while addressing public health, social concerns, and financial crime prevention.
Consultation Process to Shape New Legislation
The Ministry has launched a comprehensive consultation process, involving key stakeholders such as the public, media, state authorities, local communities, and businesses. Originally scheduled to conclude in late October, the consultation period was extended to November 25 due to significant interest from participants.
The primary goal of these consultations is to incorporate stakeholder feedback into a legal framework that ensures fair competition among operators and robust regulatory supervision. A draft law is anticipated to provide guidelines for sustainable sector growth and ethical operations, while enhancing player protections.
Key Features of the Proposed Reforms
State Secretary for Finance, Jovana Nišavić, emphasized that the updated law will represent a major shift in Montenegro’s gambling regulation, addressing issues that have persisted for over two decades.
“Thus, after two decades, Montenegro will have a new legal solution in the field of games of chance, which will include the key pillars, namely the protection of minors and young people, through provisions concerning the limitation of advertising, the distance of betting facilities from schools, and the identification of players both at bookmakers and online betting,” Nišavić stated.
Key aspects of the draft law include:
- Player Identification Requirements: Both land-based and online platforms must implement measures to verify player identity, deterring underage gambling and ensuring compliance.
- Advertising Restrictions: Proposed limitations on gambling-related advertisements near schools and on sports-related websites, with a focus on protecting minors and vulnerable populations.
- Physical Distancing Regulations: Betting facilities will face stricter rules concerning their proximity to schools and community centers.
Concerns Raised by the Gambling Industry
Despite the reform’s emphasis on modernization, Montenegro’s gambling sector has raised several concerns regarding potential adverse impacts on operators and players.
- Payment Restrictions: The draft law limits online gambling deposits to payment cards or in-person transactions at retail locations. This excludes e-banking and mobile banking options, widely used across EU markets. Critics argue that such limitations could push players toward unregulated platforms, eroding market integrity and tax revenue.
- Tax on Player Winnings: A proposed 15% tax on customer winnings has faced significant pushback. Operators warn that this measure could discourage player participation and reduce the number of active operators, ultimately decreasing government revenue—contradicting the stated goal of sustainable growth.
- Advertising Restrictions: Proposals to limit gambling advertisements to specific venues and sports-related websites could stifle business opportunities and hinder operators’ ability to reach new audiences. Additionally, these restrictions may conflict with Montenegro’s EU candidate obligations, as other EU nations have relaxed similar measures to promote regulated industry expansion.
The Ministry of Finance has been urged to adopt a balanced approach, ensuring that new regulations do not stifle industry growth or inadvertently drive players toward unregulated platforms. Stakeholders have emphasized the importance of aligning Montenegro’s gambling framework with EU standards, fostering an environment conducive to both operator success and player protection.
Next Steps
A summary report of the public consultation will be published within 15 days after its conclusion. Montenegro’s gambling industry remains committed to collaborating with the Ministry of Finance to refine the draft legislation, ensuring it supports ethical practices, protects players, and enables sustainable growth.
By addressing industry concerns and adopting modern, inclusive payment systems, Montenegro has the potential to create a thriving and well-regulated gambling sector that meets both local and international expectations.
