The Economic Committee gave the green light to the Law on Games of Chance

The Committee on Economy, Finance and Budget has given the green light to the Draft Law on Games of Chance, which introduces a large number of innovations, such as the abolition of concessions and the transition to issuing permits to organizers, an increase in most fees by 50 percent, restrictions on advertising and the introduction of player registration.

MPs will continue the debate on the law at today's session of the Parliament. Amendments to the Law on Concessions were also given the green light.

The Ministry of Finance expects this law to increase state revenues and allow for greater control over the sector, while organizers believe that they are being subjected to major restrictions, fees, and limitations.

Minister of Energy and Mining Admir Šahmanović briefly attended the discussion and stated that the Law on Concessions is being changed, meaning that the area of games of chance is no longer subject to concession.

Minister of Finance Novica Vuković emphasized that the Law on Games of Chance is based on four models for better legal regulation - the transition from concessions to approvals for organizers, the second one concerning the protection of minors, the prevention of money laundering, and the fourth one concerning fees.

He emphasized that he had never felt pressure like when dealing with this topic, and from all sides.

"The application of the existing regulations would continue the operations of organizers who do not have adequate monitoring, which would not provide protection for all interested parties. We believe that the informal economy that exists in this area will be significantly reduced. The opinions of all competent institutions were obtained in the preparation of the law, and an increase in revenue is also expected...", emphasized Vuković, adding that data on players will be collected and a better insight into the underage betting sector and the informal economy will be gained.

Penalties on 198 grounds

Miloš Lalević from the Group of Gambling Operators at the Chamber of Commerce emphasized that the law cannot be viewed in isolation, but in accordance with others that regulate this area - especially since one law has been in force for eight months, from which not a single euro has been paid so far.

Lalević stated that the law is not fully aligned with the Law on Concessions, that it is moving from a transparent model because it had a contractual relationship, to a unilateral act of the state.

"There are no public announcements, no public tenders, no administrative procedure. Of particular concern is Article 86, which lists 30 or so grounds for revoking approvals, some of which are justified, but some are not. You can't tell me that legal certainty is ensured when you have about 40 grounds for revoking and 198 penal provisions. On first reading, I thought this was the Criminal Code," he stressed.

Lalević also pointed out that fees are being increased by 50 percent, which they do not dispute, but all changes are expected immediately and are not being introduced gradually. He also pointed out that there is no sustainable way to combat illegal online betting in Montenegro, and that the sector is struggling without concrete controls in place.

"After the expiration of the 270-day period from the date of entry into force of this law, all concession contracts valid on that day will be terminated. You will have all organizers without legitimacy in one day with the obligation to submit a request to the Ministry of Finance, and in the administrative procedure to try to exercise their rights. And if they receive that approval, it can be confiscated on 40 grounds and checked on 198 grounds...", Lalević emphasized and added that there will be triple taxation through approvals, profits and deductions.

The president of the Association of Commercial Broadcasters, Srđan Filipović, added that the total income of television and other traditional media from organizers of games of chance is 17,5 million, while the expenditure is 18 million euros. The participation in advertising, he said, is from ten to 15 percent, advertising will be reduced by one million to one and a half million euros, and he asked Vuković where the money will go.

He proposed a meeting or working group to regulate the gambling advertising sector.

Vuković stated that he did not know when concessions were obtained transparently and through competition, and that the concession was awarded for a single facility and not for a company or organizer, which is why the punishment was difficult. He emphasized that organizers must submit an application to participate in games of chance and that companies can operate without hindrance and that the law is applicable.

The Internet is still not sufficiently controlled

The Association of Companies Organizing Games of Chance "Montenegrobet" also pointed out that pathological gamblers are causing them major problems, and they also commented on the ban on deposit payments through kiosks and said that it is a step backwards.

They stated that money was only paid through kiosks into verified orders and that an initiative had already been launched before the Constitutional Court to assess the constitutionality of Article 68f, and that the initiative to delete the article had been supported by 25.000 citizens through a signed initiative.

They pointed out that the Law on the Prevention of Money Laundering was imposed on them, and that it takes a lot of time and money to implement the laws, and that winnings exceeding 300 euros are taxed through the Law on Personal Income Tax. They claim that only a part of games of chance will be taxed, not the entire sector.

"The state does not have a system to monitor the system of illegal internet betting, we cannot deal with that...", they pointed out.

Vuković emphasized that checks at newsstands are not enough, which is why they are asking for banks to be included in the entire process, in order to monitor the flow of money.

"With Article 68, we have now clearly specified that you can place online bets with a card issued by a bank, and not with cards that are outside the control of the banking sector system," Vuković stated.

Igor Milošević from ADP "ZID" stated that progress has been made in protecting minors and banning online betting, but also that they have prepared 14 amendments to the Law on Games of Chance. He added that the problem of the appearance of betting shops, influencers who offer children codes for games of chance, and prevention must be improved.

Committee President Boris Mugoša stated that the organizers have not been taxed since the day they were supposed to, that is, since the beginning of this year.

New Serbian Democracy MP Dejan Đurović commented on the fact that there are four betting inspectors in Montenegro, and that he expected that number to go up to 300. He stated that the four of them cannot visit the entire Podgorica, and because of the crowds, they cannot even go to the controls on the coast...

He asked whether betting machines had been removed from catering establishments.

"I was comparing the situation with Serbia, where you have to have 50 facilities to become a regular organizer of games of chance. It seems that we are quite liberal here and allow those who have several facilities. We have 38 organizers," said Đurović.

"The law is not of good quality"

The Democratic Party of Socialists emphasized that everyone has been led astray by ideas about income and interests, while there are several gambling facilities in every residential building, and that they do not want repressive methods that will endanger the media, but that they do not want advertisements about betting that children can watch.

"I think that the dominant motive of the state is the collection of revenues, on the other hand, the organizers also want to suppress norms that concern higher costs, and I think that everyone is selfishly defending their side, while the citizens suffer the most. And if this government has not prepared a legal solution in a sufficiently high-quality manner, even though there are good norms, I think we are entering this story unprepared...", said MP Mihailo Anđušić.

The Socialist People's Party stated that 70 percent of turnover in this sector is generated on the illegal market.

The Civic Movement URA pointed out that some of the norms will affect the reduction of income from games of chance, while the Europe Now Movement MP Seid Hadžić stated that he would support their amendment, and that he would submit one himself.