The state is gambling with the gambling law

The Law on Games of Chance, which is currently before the Parliamentary Committee on Economy, introduces a large number of innovations in this industry, such as the abolition of concessions and the transition to issuing permits to organizers, an increase in most fees by 50 percent, the introduction of new fees, restrictions on advertising, and the introduction of player registration.

The Ministry of Finance expects that this law will increase state revenues by ten million euros, to 45 million, while the Association of Organizers stated that there will be a decrease in state revenues because excessive new fees and restrictions are being introduced, that it will strengthen the gray market, and reduce registered turnover and state revenues.

Organizers also point out that the transition from a concession model to organizer approvals is uncertain, opens up the possibility of abuse and corruption, and will deter new investors and hinder the development of this industry. It is also controversial that the new law provides for the establishment of a state-owned company for lottery games, which does not have the restrictions imposed on private companies, and most importantly, that the state can give the management of this company to a selected domestic or foreign private individual, who would thereby gain a significant advantage over other organizers.

The Ministry of Finance, in its explanation of this law, does not state that the new norms were taken over from the European Union, while the organizers claimed during the public debate that innovations such as the abolition of concessions, the ban on advertising, registration, etc. are contrary to EU principles.

Through amendments to other laws, a tax has already been introduced on all winnings in all games of chance over 300 euros, without clear explanations of the difference between deposits and withdrawals and without secondary legislation. Also, an amendment to the law has already been adopted to require the police and the Money Laundering Prevention Administration to monitor all players who deposit more than 20 euros, even though the limit in EU norms is 2.000 euros.

Organizers believe that all these already adopted norms and the new ones that are before the deputies make legal business impossible, while at the same time there are no quality controls over illegal organizing. During the public debate, they pointed out that illegal organizers, who have no obligations regarding the protection of minors and money laundering, already hold 70 percent of the actual turnover in games of chance and that the new law will only increase this, and the state will reduce its revenues.

According to the new law, all organizers, regardless of when they received the concession and how many years in advance they paid for it, will be without it within nine months. Organizers who want to continue operating will have to submit applications under the new law, and the state may or may not give them approval.

The drafters also point out that the law with such norms has retroactive application because it cancels previously valid contracts, although no public interest has been established, which is a constitutional obligation for such retroactive effect of the law. They also pointed out that this could lead to lawsuits by the drafters against the state and large compensation. The Ministry of Finance claimed that this is not retroactive application.

The law prohibits advertising of benefits in games of chance except on the websites of organizers and sponsoring clubs and organizations. Advertising the organizer's brand on TV would be possible from 22 p.m. to XNUMX a.m., as well as on sports pages in print media and sports portals.

Concession fees for games of chance are one of the few state revenues that continues to grow. Last year, the state earned 34 million euros from concession fees, which is almost three times more than four years earlier. In the first six months of this year, as announced by the Gaming Authority, this income increased by an additional 24 percent.