The Ministry of Finance of Montenegro has proposed a 15% tax on winnings from gambling, a move that presents another new challenge to the industry. The Ministry states that it is unreasonable to exclude gambling winnings from taxation.
This proposal would amend provisions related to personal income tax and the national "Gambling Law" with the aim of increasing budget revenues by 5 million euros and raising funds to address gambling addiction. This follows a call from Prime Minister Milojevic Spajic, who took office in October, to propose increased gambling protections, especially for minors.
However, the Montenegro Gambling Operators Association opposes the proposal. The association believes that similar tax measures in other countries have backfired, leading to reduced revenues. They argue that this tax could lead to a 30% decrease in revenue. Montenegrin gambling companies have begun to oppose the proposal, claiming it would destroy the industry.
Following plans to ban electronic payments for gambling transactions, this proposal is the latest controversy in Montenegro's gambling industry. The industry believes that this plan will have a significant impact on the sector and also increase the risk of money laundering through cash transactions.
Operators have argued that the ban makes betting shop transactions the only option for topping up accounts, which increases rather than decreases the risk of money laundering. Amendments related to Article 68f of the "Gambling Law" were approved in June, but the government has since expressed willingness to reassess the proposal.
