Gaming Law 2024 Comparisons

Montenegro is a liberal jurisdiction with regard to gaming regulations. With a handful of restrictions, it generally permits all common types of games of chance in both land-based and online forms. Gaming concessions are issued on an operator’s request for most of the game types, except for casino and lottery concessions, which are subject to a competitive tender procedure. The lottery concession is also restricted to a single operator. 

The current legislation dates from 2004 and requires updates in several key areas. Most notably, a strategic decision must be made regarding the status of the lottery. While it is regulated, in practice there has been no lottery operator since the end of 2016, as no new concession has been awarded. The existing legislation allows for a single private operator, but uncertainty remains over whether to shift to a government-operated model or pursue a partnership between the government and a private provider. In addition, there are gaps in the area of problem gambling prevention, as the current framework lacks any specific rules or measures addressing this issue. This is an area where legislative reform is critical to align with best practices and ensure player protection. Concessions can be granted only to companies incorporated in Montenegro, organised in the form of a limited liability company or joint stock company – meaning that in Montenegro, games of chance cannot be organised by other types of companies, foreign companies or entrepreneurs. Once granted, a concession cannot be transferred to third parties.

Online gambling is permitted subject to a special licence that can only be given to operators which already hold concessions for land-based games of chance. Offshore online operators are not permitted to operate in Montenegro, due to a ban on participation in foreign games of chance for which bets are placed within Montenegrin territory. In line with this, the competent authorities are responsible for preventing access to unauthorised online gaming websites. This is enforced through an independent regulatory body in the field of electronic communications, which blocks access to these sites. Additionally, banks and other service providers in Montenegro are prohibited from processing payments to such operators. The authorities also maintain and publish, ex officio, a list of unauthorised online gaming operators.

Games of chance are generally divided into two groups:

• lottery games of chance, which encompass the lottery, bingo, lotto, keno and other similar draw games; and
• special games of chance, which encompass casino games, betting and games on gaming machines.

There is no differentiation between gambling and gaming.

Recent Changes

In 2024, several regulatory changes were introduced, particularly concerning technical requirements for online gambling and taxation. More detailed rules now govern online gambling platforms, including new guidelines for communication between platforms and the regulator’s IT system. Additionally, the flat-rate monthly concession fees for online gambling have been supplemented by a 10% variable fee on gross gaming revenue. Another novelty is that all payments for online games of chance must be processed either via payment cards or at the operator’s physical premises.

The rules for land-based casino games have also been amended, with a notable change being the increase in both the fixed and variable components of the concession fees for casino operations.

Moreover, Montenegro has adopted the new AML legislation, which provides for a series of obligations that operators of games of chance must comply with.

Social gaming

A game qualifies as a game of chance only if it has all three mandatory features, as follows:

• a consideration is paid;
• the outcome is determined by chance; and
• there is a prize of money, goods or services.

Hence, social gaming is not considered a game of chance and is not regulated; and, despite the trend of the rising concern of regulators in many jurisdictions over the potential risks this activity bears, it has not been under the spotlight of the Montenegrin regulator so far.

Esports

The current regulatory regime permits betting on esports, as the definition of betting is open enough to cover any type of uncertain event.

Fantasy sports

Betting on fantasy sports is permitted and is regularly offered in the market. The definition of betting is not restricted to real sports and can cover all sorts of virtual events, such as fantasy sports.

Skill gaming

Skill gaming, as such, is not regulated. When making a distinction between games of chance and games of skill, one should apply the “any chance” test. If the outcome of a game is, to any extent, determined by chance, it will fall within the games-of-chance category, on the condition that the other two elements – consideration and a prize in money, goods or services – are present as well.

Blockchain or cryptocurrency

To date, blockchain technology and cryptocurrencies in general, and their application in the games-of-chance sector, have not been under the scrutiny of the regulator, as the current legislation does not provide for any restrictions related to the underlying technology of online gambling platforms, or to the use of cryptocurrencies. That said, given the lack of regulations, Montenegrin banks are reluctant to co-operate with companies dealing with cryptocurrencies, which may be a practical obstacle for operators intending to include cryptocurrencies in their business model.

Montenegrin legislation permits online gaming; that is, the provision of games of chance via the internet or via other means of telecommunication. This right is subject to a special licence for online gaming. However, this licence can only be issued to an operator that already holds a concession in Montenegro for any type of land-based game of chance. As a result, the online licence serves more as an extension of an existing concession rather than a standalone licence. Furthermore, online gaming providers are allowed to operate only one website

.An online gaming licence does not differentiate between types of online games, so it allows holders to organise any type of game of chance, irrespective of the underlying type of land-based concession. Therefore, a licence for online gaming issued to a holder of any kind of concession for land-based games entitles its holder to offer betting, virtual casinos and online slot games via the internet. The fixed part of the concession fee for organising online games of chance, which is paid monthly, amounts to EUR10,000, and a monthly variable fee of 10% of the gross gaming revenue.

Social Gaming

Social games are not regulated, as such, and may be freely organised. However, if a social game qualifies as a game of chance (ie, if players pay to participate in the social game, if the outcome of the game depends on chance, and if there is a prize in the form of money, goods or services), that social game would require a licence for online games of chance.

Betting

Betting is permitted in Montenegro, with a few restrictions. Namely, it is not permitted to organise betting on the results of political elections, and owners or shareholders of sports clubs cannot simultaneously be providers of sports betting on the results of the sport their club is playing or on results in the league in which their club is competing. The concession term is three years, but it can be extended through a simple procedure for an additional two years. After expiry of the (extended) term, the operator may apply for the concession anew. Operators must hold a separate concession for each betting shop they have. All betting shops must be connected over the internet to the regulator’s system.

Poker

Montenegrin law does not regulate poker as a separate type of game of chance, but rather considers it to be a type of casino game; thus, it can be played only in casinos.

Bingo

Bingo is a permitted game of chance, and requires a concession. The concession is issued for a three-year term and may be extended for an additional two years.

Casinos

Casinos are permitted in Montenegro, but the total number of casinos is currently limited to eight. Operating a casino requires a concession, which can only be obtained through a public competitive tender launched by the government (launching a tender requires a prior initiative with the government). The concession is granted for ten years and may be extended for an additional five years. A casino concession includes the right to offer gaming machines.

Gaming Machines

It is permitted to offer games of chance on gaming machines, subject to a special concession. However, a separate concession for gaming machines is not required when they are offered in casinos, because the casino licence covers gaming machines as well. The concession is granted for three years and is extendable for an additional two years.

Lotteries

The offering of lottery games is permitted, but the right is restricted to a single lottery operator. The concession is granted for ten years and can be extended for an additional five years. 

The key piece of legislation that regulates the gambling sector in Montenegro is the Games of Chance Act (Zakon o igrama na sreću, “Official Gazette of Montenegro”, Nos 052/04, 013/07, 073/10, 040/11, 061/13, 037/17, 003/23 and 125/23).

A game of chance is defined as a game in which the participants have an equal opportunity to win a prize (in money, goods or services) against an indirect or direct payment of consideration, while the result of the game depends on chance or some uncertain event in the game. The notion of games of chance does not encompass:

• quizzes, where the outcome depends on one’s knowledge;
• entertainment games on computers, simulators, video game machines, and pinball and similar machines; or
• billiards, darts and similar games, where the only prize can be one or more free games of the same kind. 

There are no guidelines regarding to what extent the outcome of a game must depend on chance in order to be considered a game of chance, provided that it also encompasses the other two mandatory elements (the consideration and the prize).

Montenegrin legislation does not provide for a special definition of land-based gambling. The general definition of games of chance applies to any type of game and covers both online and land-based products.

A game of chance provided via the internet or other telecommunication means is defined as one in which the player can participate independently by interacting with the system, without the need for direct involvement from the operator.

The key offences stipulated under the Games of Chance Act are as follows:

• organising games of chance without obtaining a licence in advance, meaning that a concession agreement needs to be signed prior to starting a gambling business;
• organising games of chance in contravention of the Games of Chance Act or the concession agreement;
• collecting stakes in Montenegro for participation in games of chance organised abroad;
• selling, holding, issuing, marketing or otherwise presenting foreign lottery tickets and other foreign tickets for gambling in the territory of Montenegro;
• organising games of chance in free zones;
• organising games where participants pay a certain amount of money to participants who have already joined the game and expect payment of a certain amount of money from participants who will join the game later on, as well as any other payments and promises of gains contrary to the aleatory nature of games of chance;
• organising betting that is: 
1. contrary to the Games of Chance Act, good business practices, and ethics; 
2. related to political elections; and 
3. run by the owners or shareholders of sports clubs, based on the results of the sport their club is playing or on results in the league in which their club is competing;
• providing credit to players;
• keeping facilities where games of chance are organised less than 250 metres from educational institutions such as primary and secondary schools;
• allowing minors under the age of 18 to enter casinos, betting shops or gaming-machine shops, or to be registered as players on online gambling platforms;
• failing to calculate and pay concession duties;
• failing to display game rules at casinos, betting shops or gaming-machine shops;
• failing to ensure the real-time monitoring of received stakes and disbursements by the gaming authority, and to establish direct connection with the monitoring system of the authority;
• failing to ensure the storage of player data in a prescribed manner;
• not allowing the immediate electronic access to the data stored in the operator's surveillance system at any time to the competent authorities;
• failing to accurately record, preserve, and maintain data in real time, and/or failing to ensure the immutability of the received data for the purpose of enabling supervision;
• failing to issue a confirmation on winnings at the player’s request;
• not maintaining records of one or more linked transactions totalling at least EUR2,000;
• failing to identify individuals who carry out one or more linked transactions totalling at least EUR2,000;
• having more than one initial website in the case of organising online games of chance; 
• registering a player of online games of chance based on the incorrect data;
• failing to report to the gaming authority all types of online games of chance that the operator is offering; and
• failing to accept payments for organising online games of chance exclusively through credit cards or at the physical premises where the games are organised.

Organising games of chance without entering into a concession agreement with the Games of Chance Administration is a criminal offence punishable by a monetary fine or imprisonment for up to three years. In addition, if in such a case the provider of games of chance or the player uses deception, they can be punished by imprisonment for between three months and five years. Furthermore, a monetary fine or a penalty of imprisonment for up to two years can be imposed for the unauthorised sale of gambling tickets or collection of payments for games organised abroad.

Additionally, licensed organisers of games of chance that breach various requirements of the Montenegrin Games of Chance Act can be fined for misdemeanour with a monetary fine of up to EUR20,000.

Furthermore, licences may be revoked in one of the following cases: 

• where the concession was granted on the basis of incorrect data; 
• where the operator did not start operations within the commencement deadline set out under the concession agreement; 
• where the operator stopped the operations in violation of the Games of Chance Act; 
• where the operator no longer complies with the prescribed technical, IT and other requirements; 
• where the operator breaches the rules of games of chance; 
• where the operator fails to pay duties under the Games of Chance Act or fails to pay winnings to players; 
• where the operator does not allow, or otherwise prevents, supervision to be performed in accordance with the Games of Chance Act, or makes the supervision difficult; 
• where the operator incorrectly reports the realised turnover; 
• where the operator lends money to players; 
• where the operator breaches the concession agreement; 
• where subsequent events occur, in light of which the concession would not have been granted;
• where the operator violates the provisions of the Act on Prevention of Money-Laundering and Financing of Terrorism;
• when the supervision process reveals that an operator, previously fined for a violation related to ensuring supervision, has repeated the same violation; or
• where the founder, beneficial owner, or member of the management body of the operator has been convicted for a criminal offence for which a prison sentence of more than one year is prescribed.

The New Games of Chance Act

The Ministry of Finance has been working for the past couple of years on the new Games of Chance Act, and the deadline for its completion has been regularly extended. The process is still pending, but in August 2024, Montenegro’s government adopted the Fiscal Strategy for 2024-2027, announcing changes to the gambling framework, including the completely new legislation, which is expected to be enacted by the end of 2024. The draft of the new Games of Chance Act has not yet been made public.

Concession fees

With the amendments of the Games of Chance Act at the beginning of 2024, the fixed annual fee for casinos has increased from EUR50,000 to EUR100,000. Additionally, the monthly concession fee for organising casino games has risen from 10% to 15% of the gross gaming revenue. A new monthly variable fee of 10% of gross gaming revenue has also been introduced for online games of chance. For organising slot machine games in a casino, a fixed concession fee of EUR50 per machine is charged monthly, along with a monthly concession fee of 10% of the gross gaming revenue.

Effective 1 January 2025, winnings exceeding EUR300 will be subject to a 15% personal income tax, which will be withheld and paid by the operator.

Share capital requirements

The share capital requirements for operators are to be increased to a certain extent, and those operators with multiple licences (eg, for betting and gaming machines) will have to cumulatively satisfy the capital requirement for each licence held.

Lottery

There has been no lottery operator in Montenegro since December 2016, when the concession of the last lottery operator expired, and a new lottery concession is expected to be granted only after the new legislation is adopted. There is a high probability that the new legislation will move toward establishing a state-owned monopolistic lottery.

Casino concession award fee

The current casino concession award fee is set at EUR2 million per single casino, which has proved to be a dissuading factor for potential new participants in the sector. The new legislation is expected to abandon the concession award fee, but this will most probably be compensated to some extent through an increase in the annual licence fees.

Other possible regulation changes

The current legislation does not address the prevention of problem gambling, so it is expected that the new legislation will regulate this area as well. It is anticipated that provisions regarding the advertising of games of chance will be established for the first time, and that regulations concerning the distance of gaming facilities from educational institutions will be defined more precisely.

The primary regulatory authority for the gambling industry in Montenegro is the Games of Chance Administration, which is under the supervision of the Ministry of Finance. Additionally, the government of Montenegro is the body that awards concessions for lottery and casino games.

The Montenegrin jurisdiction applies a traditional prescriptive approach to regulation of the gambling sector. In combination with infrequent legislative updates, this regulatory approach does not seem to be the best option for keeping up with changes in the industry.

The licensing regime is generally not expected to change under the new regulations for betting licences and for slot machines. On the other hand, the one-off fee of EUR2 million for a casino licence is likely to be abandoned, and the lottery licence is likely to be restricted to a single state-owned operator.

The current legislation provides for the following types of concessions/licences applicable to the provision of games of chance:

• a concession for lottery games;
• a concession for bingo, TV tombola and tombola;
• a concession for casino games;
• a concession for gaming machines;
• a concession for betting; and
• a licence for online gambling.

It is important to point out that a licence for online gambling can only be issued to an entity that already holds a concession for land-based special games of chance, and cannot be granted as a standalone licence.

The availability of concessions depends on the type of concession sought. In this sense, concessions for betting, gaming machines, and bingo, TV tombola and tombola are available on request. The licence for online gambling is also available on request but can only be granted to holders of a concession for land-based special games of chance. On the other hand, the concessions for casinos and the lottery can only be granted through a public competitive procedure launched by the government of Montenegro.

Every type of games of chance concession or licence is granted for a fixed time period and can be extended. The duration of individual concessions/licences is as follows:

• lottery games – ten years, extendable for up to five years;
• bingo, TV tombola and tombola – three years, extendable for up to two years;
• casino games – ten years, extendable for up to five years;
• gaming machines – three years, extendable for up to two years;
• betting – three years, extendable for up to two years; and
• online gambling – under the Games of Chance Act, no provision is given regarding the duration of the term for online gambling licences, but in practice they are commonly granted for a term of three years, with an option of unrestricted extension, so they can match the duration of the underlying land-based concession.

A general condition for any operator is that it be incorporated in Montenegro in the form of either a limited liability company or a joint stock company. Additional specific requirements – such as the minimum share capital, the amount of the mandatory bank guarantee for the payment of duties and winnings, and staffing requirements – are prescribed separately for each concession type. 

The conditions a potential operator must meet, the documents that must be provided with the application, and the criteria for the award of the lottery concession are determined in the public call for the award of the concession, and are not prescribed by the Games of Chance Act.

Documents/Information Required

Licences for bingo, TV tombola and tombola

Applications for licences for bingo, TV tombola and tombola must be submitted to the Games of Chance Administration along with the following documents/information:

• name and seat of the company;
• proof of registration of the company;
• memorandum of association;
• a three-year business plan;
• proof of ownership of, or the right to use, business premises;
• game rules;
• proof that the minimum share capital requirement of EUR75,000 is met;
• proof of bank deposit or bank guarantee of EUR10,000 (as security for the payment of duties and winnings); and
• proof of payment of the administrative fee.

Casino concessions

The conditions that the interested party must meet, the documents that must be provided with the application, and the criteria for the award of the casino concession are determined in the public call for the award of the licence. Also, the Games of Chance Act prescribes multiple documents/information to be delivered with the application for a casino licence (following the public call), as follows:

• the name and seat of the company;
• proof of registration of the company;
• memorandum of association;
• proof of the minimum share capital of EUR300,000;
• a three-year business plan;
• information on the games that will be provided in the casino (type and scope);
• game rules;
• information on the proposed casino managers and proof of their education and qualification for managing the casino;
• casino rules;
• information on the type and number of gaming machines, with detailed data for their identification;
• proof that the founder, beneficial owner, or a member of the management board, have not been convicted of a criminal offence for which a prison sentence of more than one year is prescribed;
• proof of ownership of, or right to use, the premises for the casino;
• proof of a bank deposit or bank guarantee of EUR90,000 (as security for the payment of duties and winnings); and
• information about each beneficial owner in accordance with the Act on Prevention of Money-Laundering and Financing of Terrorism.

Betting concessions

An application for a betting concession must be submitted to the Games of Chance Administration along with the following documents/information:

• name and seat of the company;
• proof of registration of the company;
• memorandum of association;
• a three-year business plan;
• proof of ownership of, or the right to use, business premises;
• the rules of betting;
• proof of the minimum share capital of EUR75,000;
• proof of fulfilment of spatial and technical conditions;
• proof of a bank deposit or bank guarantee of EUR30,000 (as security for the payment of duties and winnings);
• proof of payment of the administrative fee;
• proof that the founder, beneficial owner, or a member of the management board, have not been convicted of a criminal offence for which a prison sentence of more than one year is prescribed; and
• information about each beneficial owner in accordance with the Act on Prevention of Money-Laundering and Financing of Terrorism.

Gaming-machine concessions

An application for a gaming-machine concession must be submitted to the Games of Chance Administration along with the following documents/information:

• the name and seat of the company;
• proof of registration of the company;
• memorandum of association;
• proof of the minimum share capital requirement of EUR75,000;
• a three-year business plan;
• information on the games that will be provided in the gaming-machine shop;
• game rules;
• data on the planned slot-machine shop managers, and proof of their education and qualification for managing the slot-machine shop;
• rules of the gaming-machine shop;
• data on the type and number of gaming machines, with a detailed description for their identification;
• proof that the founder, beneficial owner, or a member of the management board, have not been convicted of a criminal offence for which a prison sentence of more than one year is prescribed;
• proof of ownership of, or right to use, the premises for the gaming-machine shop;
• proof of a bank deposit or bank guarantee of EUR25,000 (as security for payment of duties and winnings); and
• information about each beneficial owner in accordance with the Act on Prevention of Money-Laundering and Financing of Terrorism.

Online gambling licences

The main requirement for obtaining a licence for online gaming is that the operator already holds a concession for land-based special games of chance. An application for an online gambling licence must be submitted to the Games of Chance Administration along with the following documents/information:

• name, tax identification number and seat of the company;
• information about each beneficial owner in accordance with the Act on Prevention of Money-Laundering and Financing of Terrorism;
• proof that the founder, beneficial owner, authorised person, or member of the management body of the operator has not been convicted of a criminal offence for which a prison sentence of more than one year is prescribed – ie, proof that no criminal proceedings are being conducted against them for criminal offences for which prosecution is initiated ex officio;
• proof of registration in the Central Registry of Commercial Entities;
• a three-year business plan;
• proof of ownership or right of use for the premises where the central server of the operator is located; and
• list and rules of the games that will be organised.

Where the concessions are readily available – which will be the case with concessions for betting, gaming machines, and bingo, TV tombola and tombola – the administrative decision-making process must be completed within a general deadline of 30 days from submission of the application. Prospective applicants also have to take into account that the preparation of the application may take some time, as they have to engage a licensed company to inspect the premises and confirm that the relevant technical requirements are satisfied, since this confirmation is one of the documents that must be submitted with the application.

The duration of the concession award procedures for casinos or the lottery is not predetermined, and will depend on the particulars of the public tender invitation.

The Games of Chance Act does not provide for any specific application fees; thus, the applications for concessions are subject only to an administrative fee of EUR2, applicable to administrative procedures in general.

The awarded casino operator is obliged to pay a one-off fee of EUR2 million. There is no similar award fee for other types of concessions for games of chance.

The regime of ongoing fees for operators is a combination of fixed and variable fees, payable monthly or annually. The fees are different for each concession type, as follows.

• Casino games: There is an annual fixed fee of EUR100,000, and a monthly variable fee of 15% of the gross gaming revenue. For gaming machines in a casino, a fixed concession fee of EUR 50 per machine is payable monthly, plus a monthly variable fee of 10% of the gross gaming revenue.
• Lottery games: There is no fixed fee. There is a monthly variable fee of 10% of the sold lottery tickets minus the prize fund.
• Bingo, TV tombola and tombola: There is no fixed fee. There is a monthly variable fee of 10% of the tickets sold minus the prize fund.
• Betting: There is a monthly fixed fee of EUR500 per betting shop, as well as a monthly variable fee of 10% of the gross gaming revenue.
• Gaming machines: There is a monthly fixed fee of EUR50 per gaming machine, as well as a monthly variable fee of 10% of the gross gaming revenue.
• Online gambling: There is a monthly fixed fee of EUR10,000, along with a monthly variable fee of 10% of the gross gaming revenue. These fees are charged separately for betting games, virtual casino games, and virtual slot games.

Premises where games of chance are organised must satisfy various technical and spatial requirements, and compliance with these conditions must be checked before applying for a concession, as a technical compliance certificate is one of the mandatory application documents. Technical compliance must be maintained for the duration of the concession and regular inspections may be carried out by the gaming authority.

Casinos

A casino must be arranged in such a way that both the gaming areas and the guest and casino staff areas are integrated in a single space, where the minimum size of the casino is 250 square metres. In addition, the casino must have at least five gaming tables. It is prohibited to organise casino games in mixed-use (residential/commercial) buildings. A special label, issued by the Ministry of Finance and displaying the main data on the operator and the concession, must be displayed at the entrance to the casino. Within the casino, there must be a:

• cash register;
• a separate and secured area to store money and other valuables; and
• an exchange office.

There must also be a catering area, except when the casino is located inside a hospitality facility that has at least a three-star rating.

Audio-video surveillance must be installed inside the casino, so that it can cover:

• the entrance and exit;
• the reception;
• any place where gaming chips can be purchased (cash register and exchange office);
• live game tables;
• roulette tables and gaming machines;
• the calculation process – whether it is performed at the table or in a separate calculation room; and
• the movement of money or gaming chips in general.

Video surveillance cameras and monitors must be in colour, and the recordings must always show the date and time of recording. Access to the control room in which the equipment for audio-video surveillance is stored must be strictly guarded, and only authorised security personnel may gain access.

Betting Shops

The minimum permitted size of a betting shop is ten square metres. The premises must be equipped with an IT system for receiving payments that is connected to the central database of the regulatory authority, and there must be a metal safe in the premises for keeping the winning, non-winning and cancelled betting tickets, as well as the fire protection device. Betting rules, the options on offer and the results of the betting must be displayed in a dedicated notice space.

A special label, issued by the Ministry of Finance and indicating the main data on the operator and the concession, must be displayed at the entrance to the betting shop.

Payments for bets can only be made at payment points of betting shops or at betting terminals for which a concession has been granted, while the area dedicated to betting terminals cannot be less than three square metres per terminal. Betting via betting terminals can be organised not only in betting shops, but also in casinos and slot-machine clubs. The premises for receiving bets on betting terminals cannot be less than three square metres.

Gaming-Machine Venues

A gaming-machine venue must have at least ten gaming machines, and the gaming and guest areas must have a total combined area of at least 35 square metres.

A gaming-machine venue must have a cash register and a separate secured area for storing money and other valuables, and it may also have a hospitality section in which drinks and beverages may be served, or a hospitality section for preparing and serving food.

The operator is obliged to have a control IT system in place that allows the gaming machines to be connected to the IT system of the gaming regulator.

Also, a special label, issued by the Ministry of Finance and indicating the main data on the operator and the concession, must be displayed at the entrance to the gaming-machine venue.

The operator is obliged to display the following inside the premises:

• the games rules;
• a warning that gambling is prohibited to persons under the age of 18; and
• the minimum return rate percentage of the gaming machines.

In the case of multi-player gaming machines, the operator is obliged to provide at least three square metres of space per possible player.

Also, the gaming machines must support the SAS (Slot Accounting System) protocol.

Tombola

The premises used for tombola must be organised and must meet certain hygienic-technical conditions. The area must not be under 100 square metres.

The tombola operator must use the following equipment:

• a transparent drum with an automatic ball ejection system;
• an electronic counter of drawn play balls with lights;
• an electronic display with illuminated numbers or a computer system for monitoring the draw, with an appropriate device for displaying results;
• a TV camera with a monitor; and
• an appropriate sound system.

There must be a special label, issued by the Ministry of Finance, indicating the main data on the operator and the concession, displayed at the entrance to the tombola venue.

Bingo and TV Tombola

The premises (TV studio) inside which bingo or TV tombola is being organised, cannot have an area of less than 30 square metres, excluding the audience sector.

The organiser of bingo and TV tombola is obliged to ensure the monitoring of the draw of numbers and the entire course of the game through a live TV broadcast.

The detailed technical requirements for connecting audio-video surveillance systems in casinos with the information surveillance system of the Games of Chance Administration have been prescribed by the Regulation on closer technical requirements for connecting audio-video surveillance systems in casinos with the information surveillance system (Pravilnik o bližim tehničkim uslovima za povezivanje sistema audio-video nadzora kazina sa informacionim nadzornim sistemom, “Official Gazette of Montenegro”, No 042/24).

The EUR2 million fee for the awarding of a casino concession has been criticised by the industry for being too high and is generally seen as a discouraging factor for new players wishing to enter the Montenegrin casino sector. It is therefore expected that the upcoming new gambling legislation will reduce this award fee for casinos. There are also expectations of change in the lottery sector, as there has been a five-year period without a lottery operator, and the current legislation does not regulate the lottery concession award procedure sufficiently.

Any operator holding a land-based gambling concession of any type can apply for an online licence. Due to insufficient regulation in this area, the interpretation is that the online licence, once granted, gives its holder a right to organise any type of gambling online. Practically, that means that the online games provided by the operator are not tied to the types of games for which the operator holds a land-based concession. To illustrate the situation, a company with a concession for land-based gaming machines can obtain a licence for online gambling and offer betting on its website. There is an obligation for the operator to report to the competent authority on all games that they organise online and to submit rules for each online game of chance. The operator can have one initial website (IP address, website, internet domain) for organising online games of chance.

Business-to-business provision of services in the gambling sector is not a regulated activity in Montenegro. No licence is required for providers of software or services to a licensed operator as long as the provider itself is not offering the games to customers.

The use of affiliates has not been under the spotlight of the regulator and there are no particular statutory rules or restrictions in this respect.

There are no particular licensing or regulatory requirements for white-label providers. The regulator’s approach is generally neutral in this respect, and any type of arrangement for the supply of online gambling platforms or services to operators is permitted.

Under the current legislation, it is forbidden to participate in games of chance organised abroad when the stakes are paid in Montenegro, or to collect stakes in Montenegro for games of chance organised abroad. These restrictions, in the context of online gambling, refer to legal entities that do not have authorisation to organise online games of chance, so the online offering of offshore operators unlicensed in Montenegro is not permitted. The competent authorities have the obligation to prevent access to websites of unauthorised online gaming operators, through blocking access to their website by an independent regulatory body in the field of electronic communications, as well as prohibiting payment transactions by banks or other service providers in Montenegro to these operators. The competent authority maintains and publishes a list of unauthorised online gaming operators ex officio.

In early 2024, amendments to the Games of Chance Act introduced a new set of provisions for online games of chance, addressing the following matters:

• the documentation and requirements for obtaining the licence for online games of chance;
• the technical conditions related to online platforms;
• conditions and data required for the registration of players for online games of chance;
• manner of calculation and payment of concession fees for online games of chance;
• method of payments to user accounts; and
• new misdemeanours and fines related to online games of chance.

Although the Games of Chance Act emphasises public interest in the prevention of the negative effects of gambling, the provisions regulating responsible gambling are scarce and in practice limited to the restriction of underage gambling. In this regard, minors under the age of 18 are not permitted to enter gambling venues of any type. Online platforms fall under the restriction of underage gambling as well. Minors under the age of 18 are not permitted to be registered as players and the funds that have been deposited or paid to a minor as winnings will be seized by the competent authority. Surprisingly, the prevention of problem gambling is still not regulated, and there are currently no obligations imposed on operators in this respect.

Operators are not obliged to make any gambling management tools (such as betting limits, timeouts, etc) available to players.

Possible novelties of the planned new legislation may be related to temporary self-exclusion rights for players, and rights to set betting or loss limits. Furthermore, operators may be obliged to display a notice on responsible gambling in physical premises.

To reduce the negative impact of gambling, it is anticipated that provisions related to the advertising of games of chance will be defined for the first time. Additionally, regulations concerning the distance of gaming facilities from educational institutions are expected to be specified more precisely.

The key AML regulation, which also applies to the gambling sector, is the Act on Prevention of Money Laundering and Financing of Terrorism. Providers of gambling services (gambling operators) are regulated as obliged entities under this piece of legislation and hence are required to have in place policies, controls and procedures for mitigating and effectively managing the risks of money laundering and terrorism financing.

When assessing the risk of money laundering and the financing of terrorism, gambling operators are obliged to observe the list of indicators of suspicious transactions prescribed under the Rulebook on the List of Indicators for Recognition of Suspicious Clients and Transactions (Pravilnik o listi indikatora za prepoznavanje sumnjivih klijenata i transakcija, “Official Gazette of Montenegro”, No 29/24).

Gambling operators (providers of lottery games, special games of chance, online games, etc) are obliged to establish the identity of the customer, upon the collection of winnings or the wagering of a stake, or when carrying out transactions amounting to at least EUR2,000, whether the transaction is carried out in a single operation or in several linked operations.

The operator must collect information on the name, residential address and date of birth of the customer, among other things, and must verify the customer’s identity on the basis of documents, data or information obtained from a reliable and independent source. This obligation also applies to online gambling operators when opening customers’ accounts, and to casino operators when the customer enters the casino.

The new Act on Prevention of Money Laundering and Financing of Terrorism provides for the option of carrying out online video identification of customers through an automated software process, and online electronic identification using a qualified electronic certificate. These methods may be used for registration of players on online gaming platforms.

Advertising activity is not regulated in Montenegro in a general manner, and current regulations are limited to the prevention of illicit advertising in the context of the protection of consumers or traders. There is no special regulatory authority established for advertising.

The Illicit Advertising Act (Zakon o nedozvoljenom oglašavanju, “Official Gazette of Montenegro”, No 30/17) defines advertising as a communication that recommends an advertiser, or its professional or business activity, to encourage the sale of goods, services or real estate.

Advertising is not a regulated activity in Montenegro and gambling operators are free to advertise their offering without any special licence or permission.

General restrictions on advertising imposed under the Consumer Protection Act (Zakon o zaštiti potrošača, “Official Gazette of Montenegro” Nos 02/14, 06/14, 43/15, 70/17, 67/19, 146/21, 84/24) apply to gambling operators as well. In this sense, Article 29 (1) prohibits any advertising of products and services that:

• misleads or may mislead the consumer;
• discriminates against consumers on the basis of race, gender or nationality;
• offends dignity, religious or political beliefs; or
• incites violence or behaviour that is detrimental to security and consumer health or the environment.

Article 29 (2) prohibits advertising that threatens the health, psychological or moral development of minors. Also, Article 29 (3) provides that it is forbidden to use comparative, fraudulent and false propaganda and advertising messages that deceptively promote a product or service, overstating its effects or results.

The Illicit Advertising Act prohibits misleading advertising and sets out conditions under which comparative advertising may be permitted (Article 5).

Finally, the Games of Chance Act forbids the advertising of foreign betting tickets in Montenegro (Article 7).

An infringement of advertising restrictions prescribed by the Consumer Protection Act can trigger a fine of between EUR1,500 and EUR20,000, while a breach of the restriction under the Gaming Act can trigger a fine of between EUR1,100 and EUR20,000. The Illicit Advertising Act does not prescribe fines for illicit advertising, but rather introduces the possibility of class action lawsuits against infringers.

The anticipated gambling legislation is expected to explicitly prohibit any advertising related to games of chance in the media intended for children or young people (including radio or TV shows, print media, online media, or in any events directed at children or young people).

Disclosure requirements in the case of the acquisition of companies, where applicable, are not sector-specific, in that there are no special requirements applicable to gambling companies only – there are general requirements that apply to any type of business.

However, disclosure is required only in the case of a mandatory or voluntary takeover of joint stock companies (which are subject to capital market and securities regulations), and not in the case of the acquisition of, or change of control in, limited liability companies. A limited liability company is the corporate form of choice for most businesses in Montenegro, and the vehicle type currently utilised by all operators in the games-of-chance sector.

If the operator is registered as a joint stock company, the acquisition of direct or indirect control of at least 30% of the shares would trigger the obligation to launch a mandatory takeover bid by the acquirer.

There are no particular passive investor requirements in Montenegro in the case of acquisitions or changes of control of companies in general.

No response has been provided in this jurisdiction.

The Games of Chance Administration, as the regulatory body, has broad power to control the compliance of operators with the Games of Chance Act. This is exercised through the regulator’s authorised officers and inspectors, who are entitled, among other things, to:

• enter the premises of operators and perform inspections, issue orders or impose specific measures to cure non-compliance;
• prohibit the disposal of funds at bank accounts;
• temporarily stop the operations; or
• prohibit use of the premises or equipment.

They are also authorised to fine the company and issue a so-called “misdemeanour order”, which is a decision on a fine that becomes effective only if the fined entity does not challenge it and requests the court’s decision on the misdemeanour. The authorised officers and inspectors can also file a motion for starting misdemeanour proceedings before the competent courts.

Most infringements of the Games of Chance Act are considered to be misdemeanours and trigger monetary fines. The monetary fines are regularly imposed by inspectors, through issuing misdemeanour orders, or by the courts in misdemeanour proceedings. The latter will be the case if the fined company opts to challenge the misdemeanour order and have the case heard before the court, or if the inspector files the motion for starting misdemeanour proceedings instead of issuing the misdemeanour order.

The most severe infringements are penalised with criminal sanctions. Providing games of chance without a proper concession or licence is punishable by a monetary fine or imprisonment for up to three years, while selling betting tickets or accepting payment for games organised abroad can trigger a monetary fine or imprisonment for up to two years.

When a financial penalty is imposed on a company and not paid within the provided deadline, it will be enforced by the competent authority that imposed the fine, which will be the regulatory body or the court.

The primary means of enforcement against companies is blocking their bank accounts and seizing any available funds. If the funds in those bank accounts are not sufficient, the fines will regularly be enforced against other assets of the company, through their seizure and public sale.

No response has been provided in this jurisdiction.

Gambling winnings in Montenegro are currently not taxable, regardless of the type of game or the amount won, but the taxation of gambling winnings is introduced in the adopted amendments to the Personal Income Tax Act (Zakon o porezu na dohodak fizičkih lica, “Official Gazette of Montenegro”, Nos br. 065/01, 012/02, 037/04, 029/05, 078/06, 004/07, 086/09, 073/10, 040/11, 014/12, 006/13, 062/13, 060/14, 079/15, 083/16, 067/, 059/21, 146/21, 152/22 and 088/24), which will come into effect on 1 January 2025.

Gambling revenues are taxed through the system of fixed and variable concession fees (see 4.10 Ongoing Annual Fees).

From 1 January 2025, gambling winnings will be subject to personal income tax of 15%. Winnings up to EUR300 will be non-taxable. The tax is paid on the amount of the winnings reduced by the amount of the individual stake.

Employees of land-based casinos who are directly involved in organising games of chance are required to hold a certificate of professional qualification for casino work. While the government is responsible for prescribing the process and conditions for obtaining and issuing this certificate, no such regulations have been enacted to date. There are no similar requirements for other types of games of chance. The only such requirement is related to employees in land-based casinos, who are required to possess a certificate of professional qualification for casino work.

There is no procedure prescribed for obtaining the certificate. It is common practice for training to be organised internally.

There are no associated fees.

There are no specific ongoing requirements.

There are no personal sanctions. A casino may be fined if its employees are not qualified to work in a casino, and the fines range from between EUR1,000 and EUR20,000.

For the time being, there are no initiatives to regulate personal licensing more extensively.