A large number of players are switching to gambling operators who do not collect taxes, the Tax Authority has announced sanctions

Organizers of games of chance, who respect the recently adopted amendments to the Personal Income Tax Law, are announcing lawsuits against the state, claiming that they have been put in an unequal position and are suffering losses.

And this is because, points out Goran Kapor, an economics journalist for the newspaper "Vijesti", they are working according to the new letter of the law, i.e. they are calculating tax on all winnings exceeding 50 euros.

"Out of 38 registered organizers of betting and lottery games, only three have started calculating the tax on winnings, as required by law. In the meantime, four more organizers have joined them. A large number of players who traditionally use games of chance with the three dominant organizers (Volcano, Admiral and Bet) have switched to those organizers who do not collect this tax, and this has created very bad, not to say illegal, competition," Goran Kapor pointed out.

Under the amended law, which has been in effect since January 1, organizers of betting and lottery games must calculate a 10 percent tax on winnings from 50 euros to 1.500 euros, and 15 percent on winnings over 1.500 euros. Organizers are also required to calculate the tax and its amount in the event of a win on the ticket itself.

The Tax Administration is checking which of the organizers is violating the law, and for February 15th they are announcing precise information about the taxes they reported in January.

"Tax Administration officials are already working on processing cases of non-compliance with legal norms in this area, and measures and actions within their jurisdiction will be taken as soon as possible, in accordance with the prescribed procedures. We would like to remind you that irregularities in the calculation and payment of taxes are subject to significant fines for legal entities, in the amount of 2.000 to 20.000 euros, and that any attempt to evade the application of the law will be sanctioned," the Tax Administration (TA) said.

While some organizers of games of chance advertise paying taxes instead of players, the Tax Administration reiterates that the tax will be collected from all parties, because that is how it is prescribed.

"The Ministry of Finance and the Tax Administration have publicly announced their interpretation of the Law, that this is not possible, that is, that a legal entity cannot assume the tax related to the income of an individual. The Law states that this tax must be calculated and collected from the player's winnings," said Kapor.

The state planned to generate three million euros in revenue from this tax by the end of the year. Last year, organizers of games of chance reported four million euros in tax on winnings, and of that amount, about one million euros have been paid so far.