Montenegro Ministry of Finance proposes tax on gambling winnings

The move could be another blow to the gambling sector.

Montenegro.- The Ministry of Finance has proposed a 15 per cent tax on customer winnings from gambling in a move that would add another new challenge for the industry. The ministry said that the current exclusion of gambling winnings from taxation was unjustified. 

The proposal would amend articles related to Personal Income Tax and the country’s Gambling Act in a bid to increase budget revenues to the tune of €5m and raise funds to address the issue of gambling addiction. It comes after prime minister Milojko Spajić, who took office in October, called for proposals to increase gambling protections, particularly for minors.

However, the Montenegrin Gambling Operators’ Association has expressed opposition to the proposal. It argues that such tax measures in other countries have been counterproductive, leading to a decrease in revenue. It says the tax could cause payments to decline by 30 per cent. Montenegro Bet has begun a petition against the proposal, which it says would devastate the sector.

The proposal is the latest controversy in gambling in Montenegro following a planned ban on the use of electronic payments for gambling transactions. The gambling sector argues that the plan would have a major impact on the industry while also increasing the risk of money laundering through cash.

Operators had argued that the ban, which left transactions at betting outlets as the only option to top up accounts, increased rather than reduced the risk of money laundering. The relevant amendments to Article 68f of the Gambling Act were approved in June, but the government has since indicated a willingness to reassess the proposal.