Montenegro adopts final version of New Games of Chance Law

Gambling activities and licences in Montenegro will now be officially governed by the New Law on Games of Chance.

Adopted as of 1 August 2025, Montenegro will implement a new regulatory structure to govern gambling in the interest of public health, safety and the economic benefit of the state.

The ‘final submission’ of the New Law received its regulatory approval by Finance Minister, Novica Vuković, who proclaimed “the first such legislation in twenty years — is a clear sign that the state has the strength and will to regulate this sector.”

The government’s announcement praised Vuković for “denying attempts to block reforms in the field of games of chance” as the Ministry “refused to continue the longstanding policy of delay and inaction”.

“This law is more than just new regulation — it is a symbol of institutional strength and political will to bring order to a sector that has long operated outside effective control,” the Ministry declared. “The state has proven its ability to withstand lobbying pressure and special interests, steering the system toward more functional governance.”

Reforms have been long in the making. Since 2022, Montenegro has faced mounting pressure from the European Council (EC) and international watchdogs to align its gambling framework with modern standards, particularly with regards to anti-money laundering (AML), online consumer protections, and fiscal transparency.

In 2024, Montenegro introduced interim gambling reforms that banned access to foreign betting sites and restricted online payments to cards or in-person transactions, effectively limiting digital wallets and mobile banking. The amendments also doubled the fixed annual casino fee to €100,000 and strengthened enforcement powers with tougher penalties for non-compliance.

Further reforms were enacted in March 2025, as parliament fast-tracked new advertising restrictions, including a ban on gambling advertisements on domestic and foreign television and radio between 06:00 and 22:00, even during live sports broadcasts. The measures also introduced a prohibition on misleading promotions, explicitly targeting claims of guaranteed winnings or so-called “free money” incentives.

At the heart of the new regime is a shift from the outdated concession model to an approval-based licensing system. This change, according to the Ministry, will provide “greater legal certainty, clearly defined obligations, and more precise control and oversight.”

The law also introduces real-time digital surveillance, mandatory player identification, and video verification — tools that regulators hope will help trace financial flows and eliminate under-the-table transactions.

A further pillar is a focus on the mitigation of social harms. Underage betting is now explicitly banned as written into criminal law, with enhanced distance requirements for gambling premises near schools and stricter limits on advertising.

“We are introducing strong protective measures for social values,” said Vuković, “through a ban on underage betting, regulation of advertising, and restrictions on gambling locations near educational institutions, while directly addressing gambling addiction.”

Operators are also expected to contribute more to addiction treatment programmes and to submit to regular audits by the Ministry of Finance. “We are not just introducing reform on paper, but taking a concrete step forward — in the fight against the grey economy, the implementation of digital supervision, and the enhancement of internet betting controls, all in line with European best practices.”

Fiscal provisions have not been ignored. The government will increase licensing and operational fees, but insists the rises are moderate and calibrated to “preserve the sustainability of the industry.” Online operators will also be subject to a 10% tax on net gaming revenues, while winnings exceeding €300 are now liable for a 15% personal income tax at the point of payout.

Yet not parties remain to be convinced . The Law on Games of Chance is facing sharp criticism from within the industry, particularly from Montenegrobet, the national association of licensed operators. It has described the legislation as a “proclamation on expulsion,” arguing that the law introduces disproportionate and unrealistic requirements, particularly around criminal liability and licence revocation grounds, that could destabilise the legal market.

Speaking to SBC, Stasya Yautodzyeva Head of Market Insights at 4H Agency, provided further warnings: “By removing key legal protections and introducing regulatory burdens out of step with EU standards, the law may unintentionally drive players and companies into the unregulated sector.” The consequences, they argue, could be stark — from widespread closures and job losses to reduced tax revenues and a chilling effect on investment.

“Montenegro is already not a highly attractive destination for European gaming operators,” 4H states, “and the market has limited appeal compared to larger or more digitally progressive jurisdictions. By adopting a more rigid and punitive legal framework, Montenegro risks not only weakening its domestic market but actively repelling prospective licensees.” In doing so, the government could transform a marginal jurisdiction into one that is “fundamentally unattractive.”

A full implementation comes at a time when Montenegro is keen to showcase institutional competence as it continues its long march toward EU accession, ensuring the alignment of high-risk sectors.

By the Ministry’s own account, “this is a strong step forward for the state, public interest, reform, and all those in the industry who operate legally. The state extends a partnership hand — to jointly implement the law, strengthen trust, and build a sustainable, responsible, and transparent sector.”