Organizers of games of chance have expressed their displeasure over the announced changes to the laws on games of chance and personal income tax, whose adoption is announced for the end of April or the beginning of May.
At a meeting of the Group of Game Organizers at the Chamber of Commerce (PKCG), they assessed that the announced changes come too quickly after the entry into force of the latest amendments to the Personal Income Tax Law, and that, given that they include changing the progressive taxation rate to a fixed rate of 12 percent, they should have been preceded by a public debate, as these are significant changes for players.
"It is unacceptable that the tax rate changes from progressive to fixed without public debate and impact analysis," the organizers believe.
It was announced at the meeting that discussions are underway with the proposer, the Ministry of Finance, and that options for retaining the non-taxable portion for virtual games are being considered.
Deputy President of the Group Miloš Lalević initially pointed out that organizers face almost identical challenges, regardless of the differences between individual operators.
According to him, the situation is largely uniform and includes various forms of regulatory restrictions, including local bans on doing business in smaller areas, as well as a constant increase in the fiscal burden and changes to regulations that are adopted in short periods of time.
He particularly emphasized that changes to laws and tax rules occur frequently and without sufficient coordination with the economy, which creates a sense of legal uncertainty and makes long-term business planning difficult.
A particular problem is the Law on Personal Income Tax, which introduces a single rate of 12 percent on all winnings from games of chance.
"Businessmen recalled that until now there was a differentiated taxation system, with a non-taxable portion of up to EUR 50, then a rate of ten percent for gains up to EUR 1,5 thousand and 15 percent for higher amounts," the PKCG statement said.
It was noted that the new proposal was introduced without a public debate and without prior consultations with the industry, which was assessed as a problematic approach in the process of enacting laws that directly affect both citizens and the business of organizers.
According to participants, representatives of the Ministry of Finance explained that a public debate was not organized because it was assessed that there was no need for it, but at the same time they expressed their willingness to further consider the proposals of the economy.
Despite this, businesspeople pointed out that in practice it often happens that certain positions are presented at meetings, but are not later reflected in the final solutions, which further contributes to distrust in the process.
A large part of the discussion also related to technical and regulatory concerns in the existing and proposed regulations of the Law on Games of Chance.
The definition of betting games is particularly problematic, as it was taken from other legislation without adequate adaptation to the domestic system, which creates problems in application, especially in the segment of "cash out" options and delayed sports outcomes.
It was also pointed out that there were a number of technical errors in the regulations, as well as the fact that the objections of the business community were largely not taken into account in the final versions.
"Additional concerns were expressed regarding the practice of inspection bodies and local utility services, especially in the area related to external marking of facilities and illuminated advertising, where, as stated, fines are repeated for the same facilities, without clear and uniform criteria for action," the statement added.
A significant part of the discussion was also dedicated to the transitional period in the implementation of the new Law on Games of Chance, namely the extension of the deadline for adjustment from 270 to 450 days, which practically moves the full implementation of the law to November 11th.
Businessmen pointed out that this does not delay the law itself, but rather extends the harmonisation period, but that it also opens up a number of operational uncertainties, especially regarding the issuance of permits for locations and the possibility of different treatment of existing and new facilities.
"It was warned that such a model could lead to distortion of competition in the market and legal inequality among organizers. In this context, it was emphasized that it is necessary to take a unified position within the group and insist on a clear and uniform application of the law for all entities at the same time, in order to avoid situations in which part of the market operates according to the old rules and part according to the new ones," the statement said.
At the end of the discussion, it was concluded that it was necessary to intensify institutional communication through the Chamber of Commerce and Industry of Montenegro, formally request the participation of representatives of the group in the work of relevant committees, and organize a new meeting with representatives of the Gaming Authority and the Ministry of Finance.
Businessmen particularly emphasized that they would continue to submit joint initiatives and comments, but also that they expect a systemic approach that would provide a more stable and predictable regulatory framework, without frequent changes and subsequent corrections that make business in the sector more difficult.
At the meeting, the President of the Group, Filip Knežević, also spoke about Montenegro's participation in the establishment of the Balkan Gaming Federation, which represents an important step towards stronger regional connectivity of the gaming industry.
"This initiative opens up space for coordinated action with the countries of the region, especially in the fight against the illegal market, improving the regulatory framework and exchanging good practices. Also, this type of cooperation will contribute to stronger representation of the interests of the Montenegrin industry at the international level and its better positioning within European trends," said Knežević.
He added that the goal of such a connection is to create a more stable and predictable business environment that will benefit both the economy and the state budget of Montenegro in the long term.
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