Croatia Prepares Stricter Gambling Regulations

Croatia Prepares Stricter Gambling Regulations

Croatia is preparing to enforce a new set of gambling regulations, signaling a shift in how the country approaches both land-based and online gambling operations. The full implementation is scheduled for early 2026, setting a two-year timeline for operators to adapt to structural and financial changes that could alter the market.

The updated framework introduces several reforms to strengthen state oversight and introduce access, advertising, and taxation controls. These adjustments reflect growing political and social pressure to reduce gambling-related harm while ensuring the state captures a greater share of gambling revenues.

Among the key changes is the introduction of mandatory player identification for all gambling activities, both online and in physical venues. This requirement establishes traceability of gambling behavior, positioning the state to monitor patterns and intervene when necessary.

A national self-exclusion register will also be developed, allowing individuals to exclude themselves from gambling activities. Operators will be obligated to integrate this system into their platforms, which could create technical and logistical demands, particularly for smaller businesses with limited resources.

These measures come as Croatian health authorities raise concerns over rising gambling harm, especially among younger demographics. Estimates suggest that 5% of adults and 6% of young adults experience gambling-related issues, figures that have prompted political leaders to act.

The regulations also target gambling marketing strategies. Advertising will face a near blackout during peak daytime hours, with promotions on television, radio, and digital platforms banned between 6 a.m. and 11 p.m. Restricting advertisements in public spaces and print media is also considered.

Celebrity endorsements, athletes, and social media influencers will no longer be allowed in gambling campaigns, reflecting concerns about the influence of popular figures on younger audiences. Online operators must implement controls to prevent their promotions from reaching minors.

A new regulatory authority will be established to oversee these requirements. This body will monitor compliance, issue fines, suspend licenses, or revoke them when necessary. By introducing a dedicated agency, the government signals its intent to move from passive legislation to active enforcement.

The new rules may have the most immediate effect on land-based gambling operators. Croatia currently hosts around 6,300 gaming halls and 1,300 betting shops. Under the proposed changes, many of these venues could close or relocate.

Municipal authorities will review venue locations. New distance rules will require gaming halls to operate no closer than 500 meters from schools and religious institutions, and betting shops will be subject to a 200-meter minimum distance. These spatial restrictions are expected to reduce the number of active venues by as much as 15%, particularly in urban areas where such distances are harder to achieve.

Additionally, self-service betting terminals in non-gambling venues—such as cafés and restaurants—will be banned. This move represents a targeted effort to reduce casual betting opportunities that fall outside formal oversight.

Another major pillar of the reform involves overhauling tax and licensing structures. Increases in fees signal the government's intention to capture more revenue from the sector while also raising barriers to entry.

Land-based casinos will see their annual license fee rise from EUR 400,000 to EUR 600,000. Online gambling licenses will increase from EUR 265,445 to EUR 398,168, and betting shops' fees will grow from EUR 132,722 to EUR 200,000. These adjustments will likely force operators to reevaluate their financial models, particularly smaller local operators who struggle to absorb the additional costs.

Winnings will also become subject to a progressive tax model, ranging from 10% on smaller prizes up to EUR 1,500, to 30% on winnings exceeding EUR 70,000. The government expects to raise an additional EUR 50 million to EUR 70 million annually through these adjustments.

A portion of the increased revenue, roughly 11%, will be directed toward addiction prevention programs, education, and social initiatives. While these contributions are positioned as mitigating the social costs of gambling, they also reflect a broader strategy to ensure that gambling revenues directly fund public welfare.

The Croatian model introduces several challenges for the online gambling sector that could reshape market participation. Higher operating costs, stricter compliance requirements, and tighter advertising controls may reduce the market's appeal for international operators, potentially leading to a more consolidated local industry.

The move also aligns Croatia with a broader European trend where governments seek to tighten control over gambling markets. Similar strategies are being deployed in markets like Germany, the Netherlands, and the United Kingdom, where advertising limitations and increased taxes are becoming common.

However, there is a risk that such restrictions could push some players toward unregulated markets. Offshore gambling platforms operating beyond Croatian jurisdiction may attempt to fill the gap, complicating enforcement efforts and weakening player protections.