Albania, a country located on the Balkan Peninsula, is at a crossroads in its online gambling regulatory policy. After enacting a comprehensive ban in 2019, which shut down most gambling establishments nationwide, including online platforms, the government has been gradually opening up the online gambling market in recent years. This shift not only brings opportunities for international operators but also signifies the country's attempt to find a balance between "protecting society" and "unleashing industry potential."
Historical Background of the Comprehensive Ban
At the end of 2018, the Albanian parliament passed a law that, starting from January 1, 2019, closed all sports betting stations, online gambling platforms, and electronic gambling halls nationwide, allowing only state-operated lottery companies to continue operations. The initial intent of the ban was to curb gambling addiction, money laundering, and black market operations, especially against the backdrop of rampant gambling in the suburbs of the capital, Tirana, where the government took drastic measures.
However, the comprehensive ban also led to some unintended consequences. Underground gambling activities spread rapidly, and millions of euros in illegal income failed to enter the formal financial system, making it difficult for law enforcement resources to cope with the increasingly complex "dark web" gambling networks. International organizations and local think tanks generally point out that mere prohibition cannot eradicate gambling problems but instead weakens regulatory power.
Market Restart: Signs of Policy Relaxation
Since 2022, the Albanian government has been brewing a mechanism for the legalization of gambling. In 2023, the Ministry of Finance and Economy proposed a new draft law, planning to allow licensed online gambling platforms to go online again in 2024, provided that operators comply with strict scrutiny mechanisms, including having data centers in Albania, capital transparency, and tax compliance.
The new draft also requires:
Operators must register in Albania and pay license fees;
Establish a dedicated national regulatory system for real-time monitoring of each transaction;
Platforms must integrate interfaces for anti-money laundering reviews from the Albanian Ministry of Finance and the Central Bank;
Strictly prohibit minors from registering and betting.
These measures, marking a move towards a "controlled opening" direction, bring Albania's regulatory model closer to the licensing markets of Italy and Greece.
Market Potential and Challenges Coexist
Although Albania has a population of only about 2.8 million, the demand for gambling is not low. According to unofficial statistics, the annual turnover of the online gambling market before the ban was as high as 700 million euros. At the same time, the penetration rate of mobile internet is continuously increasing, and the highly digitalized young population provides a good user base.
However, the market also faces significant challenges. One is the lack of a mature local compliance service system; another is that regulatory enforcement still needs to be fine-tuned, and data sharing between law enforcement departments and technical platforms is not smooth; third, there is a divergence in public opinion on the legalization of gambling, with strong opposition from religious groups and conservative forces.
Conclusion
The Albanian online gambling market is experiencing a transformation from "zero tolerance" to "orderly opening." For international gambling brands, this is an excellent window to layout in emerging markets; for the government, it is a difficult balancing act between fiscal revenue and social responsibility. If an effective regulatory mechanism can be established, Albania has the potential to become the next compliant gambling star in the Balkan region.
