Montenegro’s Gambling Sector Faces Regulatory Shift

Montenegro’s Gambling Sector Faces Regulatory Shift

Montenegro has taken a step towards reforming its gambling sector by introducing legislation that replaces the traditional concession model with a modernised licensing system. This system is designed to provide real-time digital oversight, reflecting an effort to regulate better an industry that has experienced rapid growth amid evolving market dynamics.

The newly implemented legal framework introduces digital monitoring mechanisms to ensure operators adhere to regulatory standards consistently. The aim is to enhance transparency and reduce illicit activity by allowing authorities immediate access to operational data, which marks a departure from previous oversight methods that lacked continuous supervision.

A prominent component of the legislation is the criminalisation of gambling by individuals under the legal age. The law further establishes mandatory identification protocols, requiring player verification through both ID checks and video confirmation. These measures seek to tighten controls on access and ensure compliance with responsible gambling guidelines.

On the fiscal front, the legislation imposes a 10 per cent tax on net gaming revenues for online operators. Additionally, winnings that exceed €300 will be subject to a 15 per cent personal income tax. These adjustments are intended to secure a fair share of the sector’s economic value for public resources while maintaining clear guidelines for operators and players.

Finance Minister Novica Vuković has framed the legislative changes as a necessary progression towards a more structured regulatory environment. He emphasized that the reforms address long-standing gaps in oversight and respond to calls from international bodies, such as the European Council, for stronger anti-money laundering measures and improved fiscal transparency.

While the new rules aim to create a more robust regulatory framework, some industry voices express caution. Concerns have been raised about the potential effects of stringent criminal liability provisions and the mechanisms for licence revocation, which some believe could introduce uncertainty in the regulated market and impact operator participation.

This legislation builds upon prior regulatory actions taken over the past two years. These included bans on offshore betting platforms and new limitations on payment methods, restricting transactions primarily to card payments or in-person transactions. The government notably abandoned a proposal to limit online gambling payments exclusively to cash deposits after significant resistance from the sector, which argued that such a move could conflict with European anti-money laundering guidelines.

The revised framework also doubles the casino licensing fee to €100,000, signaling an increased financial commitment expected from operators. Additionally, advertising regulations have been tightened, with gambling advertisements on television and radio now restricted to the hours between 6 a.m. and 10 p.m. Marketing that implies guaranteed returns or free winnings has been prohibited, reflecting a focus on promoting responsible messaging.

Montenegro’s approach highlights a shift towards integrating technology-driven oversight with regulatory controls aimed at protecting players and ensuring market integrity. The reliance on real-time monitoring tools aligns with a broader international trend towards more proactive governance in gambling markets.

Implementation will be a critical factor in determining the practical impact of these changes. Operators will need to navigate new compliance demands while balancing the cost implications of increased fees and taxes. Meanwhile, regulators will face the challenge of maintaining consistent enforcement without disrupting market stability.