The regulatory environment for the gambling industry is subject to continuous and significant changes, often without adequate communication with gambling operators or sufficient time to adapt to new regulations. The inconsistent application of laws and regulations, along with their mutual discrepancies, creates an unstable environment for both ongoing operations and future investments in this sector.
Savo Martinović, President of the Gambling Operators Group, has emphasized the difficulties faced by the industry due to these challenges. The recently formed Gambling Operators Group under the Tourism and Hospitality Committee of the Chamber of Commerce aims to address these issues by uniting the interests of gambling operators in Montenegro. This sector had previously lacked representation within the Chamber of Commerce, making it necessary to establish a dedicated body to effectively articulate and address the industry’s needs.
The group’s short-term goals include positioning itself as a serious institutional partner to decision-makers and presenting itself as a professional and responsible community. One of the key short-term objectives is to actively participate in the legislative process for the new gambling law. Long-term goals involve strategically positioning the gambling industry within Montenegro’s economic and financial systems and mitigating potential negative effects such as excessive addiction and the gray economy.
A significant barrier identified is the instability in business conditions caused by frequent and substantial changes in the regulatory framework. This instability is exacerbated by a lack of consultation with operators and inadequate time for adaptation. The inconsistent implementation of laws and regulations further complicates the operating environment and creates challenges for investment in the sector. Addressing these barriers requires collaborative efforts between government bodies and those affected by these issues.
The planned amendments to the Law on Personal Income Tax, which will introduce a new tax on gambling winnings, have been highlighted as a major new business barrier. The Gambling Operators Group aims to demonstrate the potential negative consequences of this tax, particularly for the casino sector, to decision-makers.
The informal economy, including illegal operations and unfair competition, also significantly impacts the gambling industry. For instance, foreign online gambling sites that operate without licenses and collect bets from Montenegrin players create unfair competition and harm the Montenegrin budget.
The group’s engagement with Montenegrin state authorities has been limited due to its recent formation. However, there has been an increasing interest from government bodies in the gambling sector. Despite this, proposals from operators, particularly those related to changes in gambling laws, have largely not been accepted.
The group anticipates improved cooperation in the future and hopes to be included in the working group preparing the new gambling law. The formation of the Coordination Body for the Protection and Improvement of Public Interest in Gambling is welcomed, and the group expects to participate in its activities.
The Gambling Operators Group will be actively involved in drafting new legislation and harmonizing existing regulations. The group’s expertise and experience are expected to contribute to better regulation and protection of public interest in gambling operations.
Currently, the Gambling Operators Group consists of 22 member companies engaged in gambling operations, with approximately 3,500 individuals employed in the industry in Montenegro.
