The group of gambling operators within the Chamber of Commerce of Montenegro has expressed serious concern over the lack of adequate communication and collaboration with the Ministry of Finance, despite multiple appeals for dialogue.
“For a long period, since the beginning of the public debate regarding the law, operators both individually and through the group have clearly pointed out the key problems and specific reasons why the Law on Amendments to the Law on Personal Income Tax, which introduced a tax on gambling winnings, is unworkable in practice,” the Group of Gambling Operators stated.
The operators added that they had submitted expert analyses, presented arguments based on decades of experience and thoroughly explained the legal and technical shortcomings and consequences of such legal provisions.
“Despite continuous calls for dialogue, including our most recent request for the Ministry of Finance’s presence at the Group’s meeting on January 17, which they failed to attend, this once again highlights the unacceptable practice of avoiding institutional responsibility and denying space for open, expert, and constructive communication. We believe that ignoring these initiatives undermines the principles of transparency, partnership, and legislative practice, which require the active involvement of all relevant stakeholders. The absence of quality dialogue and trust has led to the adoption of unworkable legal solutions that jeopardize legal operations and create room for the growth of the grey market,” the statement emphasized.
System lacking effective coordination
The operators also pointed out the recent situation involving the regulatory agency EKIP, which revealed the difficulty in shutting down illegal gambling websites, further highlighting significant flaws in the coordination of government institutions.
“The lack of agreement between the Ministry of Finance and EKIP on combating illegal gambling sites further confirms that the current proposal for the Gambling Law, which is under parliamentary review, has not been adequately prepared and cannot be implemented. The problem appears not only to lie in the lack of communication between the Ministry of Finance and operators but also in the absence of coordination between key institutions responsible for implementing the law. This situation directly suggests the need for simultaneous passage of the Gambling Law and proper regulation of potential taxation of gambling winnings,” the statement added.
Should the Ministry of Finance continue to ignore the operators’ calls and fail to take concrete steps to address these issues, the operators believe the responsibility for the inefficiency and dysfunctionality of the gambling system, and consequently the significant reduction in revenue for the state budget, will rest with the relevant government institutions.
Legal operators contribute to the budget despite challenges
While the state introduced a tax on gambling winnings that is unworkable in its current form, which effectively serves as a business barrier between operators and players, the situation is further aggravated by the fact that the government has not ensured efficient mechanisms to combat illegal activities.
“While legal operators, who comply with all legal obligations, operate under extremely challenging conditions with continuous new impositions and barriers, illegal entities continue to operate freely, causing significant damage to the budget and the market,” the Group stated.
The operators reminded that they significantly contributed to the state budget in 2024, with the latest report from the Gambling Administration showing that the concession fees for gambling operations amounted to 33.8 million euros, a 51.27% increase compared to 2023, which the state has rightfully called “record-breaking.”
“It was expected that this would encourage the government to create a safe and sustainable business environment while respecting the principles of responsible gambling. However, despite the expectation that with the continuous monthly increase in revenue, the budget’s income would exceed the planned 40 million euros from these fees, we are currently witnessing the imposition of new financial burdens that inadequately tax end-users—the players,” the Group emphasized.
Urgent need for dialogue
The operators are calling on the Ministry of Finance to organize a meeting with gambling operators as soon as possible to engage in a constructive dialogue aimed at creating a sustainable application of the Personal Income Tax Law. While they believe the provisions of the tax on winnings should be completely abolished, as they represent a cost for the players rather than the operators, they are ready to fully contribute to defining applicable mechanisms for collecting the gambling winnings tax based on comparative experiences and ensuring equal conditions for all participants in the gambling sector.
“If the Ministry of Finance continues to ignore our calls and fails to take concrete steps to address these issues, we believe that the sole responsibility for the inefficiency and dysfunctionality of the gambling system, and consequently the significant reduction in revenue for the state budget, will lie with the relevant government institutions,” the Group concluded.