The Republic of Montenegro has officially enacted a new gambling law aimed at enhancing industry regulation and public health safety by introducing a modernized licensing system and real-time digital monitoring, while also boosting the gambling industry's contribution to the national economy.
The new law abolishes the previous franchise model, adopting a stricter licensing management. The law explicitly criminalizes underage gambling participation, enforces player identity recognition and video verification procedures to protect vulnerable groups. Online gambling operators are required to pay a tax rate of 10% on net gambling revenue, and winnings over 300 euros are subject to a 15% personal income tax.
Finance Minister Novica Vuković stated that this law reflects the government's determination and ability to strengthen regulation and standardize the long-underregulated gambling industry. The law also responds to international institutions such as the Council of Europe's demands for anti-money laundering and fiscal transparency. However, some industry insiders are concerned that the strict provisions on criminal liability and license revocation in the new law may affect market stability.
In the past two years, the Montenegrin government has taken several measures to restrict offshore gambling and control payment channels, although it initially proposed allowing only cash deposits, which was ultimately abandoned due to strong industry opposition and concerns about violating European anti-money laundering goals.
Furthermore, the cost of casino licenses has been raised to 100,000 euros, advertising restrictions are stricter, and gambling advertisements are only allowed to be broadcast from 6 AM to 10 PM, prohibiting promotions that promise winning money or "free money," further regulating market order.
