The European Gaming and Betting Association (EUROMAT) has formally complained to the European Commission about Croatia's revision of the "Gambling Law", accusing Croatia of not notifying the European Commission of the regulatory changes in advance as required by EU law, violating EU procedures. The amendments passed by Croatia in March include mandatory player identification, restrictions on the layout of gambling venues, prohibition of online and social media advertising, and the introduction of a central self-exclusion registration system. EUROMAT believes that these amendments create an unfair competitive environment and that the unreported behavior threatens the legal certainty of European businesses. The Croatian Gaming Association also criticized the government for excluding stakeholders from participation, and the European Commission will assess the complaint and may initiate infringement proceedings.
Complaint Background and EU Procedures
The European Gaming and Betting Association (EUROMAT) has formally complained to the European Commission, accusing Croatia of failing to comply with EU notification procedures when amending the "Gambling Law". According to EU law, member states must notify the European Commission of new legislative drafts that affect market access, service provision, or mandatory technical requirements for review.
EUROMAT pointed out that Croatia completely ignored this legal obligation, constituting a violation of EU law.
Content of Croatian Regulatory Amendments
In March this year, Croatia passed amendments to the "Gambling Law", which include the mandatory implementation of a player identification system, restrictions on the location and layout of gambling venues, and a complete ban on online and social media advertising. Additionally, Croatia introduced a new central player self-exclusion registration system.
These amendments aim to strengthen the regulation of the gambling industry, but the drafting process did not follow EU standard procedures.
Nature of Violation and Competition Concerns
EUROMAT emphasized that Croatia's failure to notify the amendment directly violates EU law. The organization also pointed out that the exemptions and regulatory privileges in the new regulations create an "unfair competitive environment" that could harm specific market sectors.
Providing special treatment without EU review could distort market competition and harm the interests of different operators.
Industry Reaction and Warning History
The Croatian Gaming Association (HUPIS) and the European Commission had previously issued similar warnings about the proposed amendments. EUROMAT had explicitly stated that if Croatia implemented these unreported changes, formal action would be taken.
Industry groups unanimously believe that ignoring EU procedures will undermine legal certainty and market fairness.
Legal Procedures and Potential Consequences
Based on EUROMAT's complaint, the European Commission will assess the evidence and decide on the next steps, including whether to initiate infringement proceedings against Croatia. The formal complaint marks the first step in the EU legal process, potentially triggering EU-level review and sanctions.
Infringement proceedings could lead to legal consequences for Croatia and require regulatory amendments.
Statements and Criticisms from Various Parties
EUROMAT Chairman Jason Frost harshly criticized the Croatian government: "Croatia's decision to ignore notification obligations not only violates EU law but also threatens the legal certainty of businesses across Europe." He believes that the European Commission must take decisive action to maintain the integrity of the internal market.
Filip Jerakovic, Secretary-General of the Croatian Gaming Association, also accused the government of deliberately excluding stakeholders and EU institutions from the process.
EU Market Principles and Impact
The EU notification procedure aims to ensure that member state measures comply with the single market principles. Croatia's actions are questioned for "blatantly ignoring the rules that all other countries must follow," raising concerns about the signal this sends to other member states.
This case may become an important test of EU law enforcement and single market integrity.
Croatian Position and Defense Space
So far, the Croatian government has not publicly explained or defended its unreported actions. According to EU procedures, Croatia has the opportunity to state its position during the litigation process, explaining the urgency and necessity of the amendments.
The government may argue that these measures are necessary for public health and social protection.
Next Steps and Expected Developments
The European Commission will first assess the sufficiency of the evidence in EUROMAT's complaint and decide whether to formally accept it. If accepted, a dialogue process with the Croatian government may be initiated, requiring explanations and possible amendments to the regulations to comply with EU standards.
The entire process may take several months, during which Croatia must temporarily suspend the implementation of the disputed provisions.
Industry Impact and Market Adjustments
If the European Commission supports the complaint, Croatia may need to adjust the new regulations involving discriminatory treatment or market access restrictions. Local operators and international businesses alike look forward to a fairer competitive environment, avoiding the operational risks brought by regulatory uncertainty.
In the long term, this case may strengthen the coordination and transparency of gambling regulation across the EU.
