Montenegro’s draft gambling law under review: Industry concerns and calls for revisions

The draft law on gambling needs further review to ensure legal certainty and economic sustainability for operators, as the public consultation process was criticized for lacking transparency and failing to involve industry stakeholders, according to members of the Gambling Operators Group within the Chamber of Commerce (PKCG).

The draft law was discussed during a meeting of the Gambling Operators Group, which aims to develop sustainable solutions that protect both public interests, such as the protection of minors, and the needs of operators.

Concerns raised over market stability and regulatory process

Marijana Zec, Deputy Chair of the Group, warned that the new law could have serious negative consequences for both the state and the gambling industry. She emphasized the absence of a market impact analysis, particularly regarding the stability of the gambling market and the collection of variable fees the state relies on.

Milena Đuričić, a representative of the Gambling Authority, stated that the legislative process is open and transparent, with the primary goal of updating regulations to improve sector operations. She also pointed to the complexity of implementing a new information system, which is essential for the operation of all concessionaires.

“We are committed to supporting businesses, not hindering them, while staying within the legal framework,” Đuričić emphasized, adding that a coordination body would soon convene to continue working on the legal framework.

Industry demands for revisions

One of the major concerns raised by operators is the proposed provision in the draft law that would transfer the right to organize gambling activities through an administrative procedure, a significant shift from the current concession model. This raises questions about transparency and equality in the concession award process.

Participants in the meeting stressed the need for uniform conditions in the concession process to ensure equal opportunities for all businesses. Additionally, they proposed amending Article 106 to ensure that concession contracts remain in effect until their expiration, allowing operators to adjust to the new law.

The industry also expressed concerns about the 90-day deadline for submitting extensive documentation required for approval, calling for the deadline to be shortened.

Revenue distribution and advertising concerns

Another key issue discussed was the distribution of gambling revenue. Operators emphasized the need for clear definitions of public interest, including social and humanitarian purposes and insisted that the funds raised from gambling should be distributed transparently and efficiently. They also criticized the omission of Article 15, which detailed the distribution process, arguing that its absence could lead to confusion and potential misuse of funds.

A controversial provision in Article 16, which imposes advertising restrictions, was also discussed. Participants believe this could unfairly favor certain types of gambling operators over others and argued that non-resident operators should not have the right to advertise.

Concerns over distance regulations and criminal record checks

A central topic of discussion was Article 25, which proposes that the distance between gambling establishments and educational institutions be measured using the shortest walking route rather than the air distance. Another concern was Article 26, which requires directors and company members to submit criminal record certificates, a provision that participants felt violates the presumption of innocence.

The group proposed shortening the processing time for requests under Article 27 from 90 days to 30 days to improve efficiency.

Taxation and fees criticized

Participants also raised concerns about the taxation provisions in Article 36, arguing that the proposed method for calculating fees could lead to double taxation. They also objected to the proposed increase in the fixed fee per betting shop, suggesting it should be reduced to €500 to align with the economic sustainability of the market.

Call for extended public consultation

Given the number of concerns raised, the Gambling Operators Group has called for an extension of the public consultation period to ensure all key aspects of the draft law are fully considered. They believe this will help avoid legal ambiguities and ensure that the interests of all market participants are protected.

Đuričić reassured that the Gambling Authority remains open to collaboration and is willing to consider all proposals that would improve the legal framework.