New tax rate on gambling winnings stokes controversy in Montenegro
Operators were given just 24 hours’ notice of the new tiered tax structure.
Montenegro.- The Ministry of Finance of Montenegro has come in for sharp criticism after an abrupt change in how gambling winnings are taxed. Operators were given just 24 hours to reconfigure systems in time for the implementation of a new framework from the start of the year.
The change was imposed in amendments to Montenegro’s Law on Personal Income Tax, which was introduced separately from the 2026 Budget. Previously, all gambling winnings above €300 were previously subject to a flat 15 per cent tax, but the new structure introduces a tiered system.
Only winnings of up to €50 remain untaxed. Winnings between €50.01 and €1,500 face a 10 per cent levy and winnings above €1,500 are taxed at 15 per cent. The rules apply to betting, lotteries and international jackpots, while casino and slot machine prizes are excluded.
The amendments were proposed by MP Armen Šehović (PES). The Ministry of Finance said the previous framework had been ineffective, but operators criticised the sudden roll out and lack of consultation. They also argue that the ministry has not provided any fiscal analysis to justify the benefits of the new structure or to explain how it will work.
The online gambling association MontenegroBet has made a formal complaint and says it plans to challenge the constitutionality of the change. It criticised the exemption of casino and slot winnings and suggested that certain “privileged” operators had advance knowledge, enabling them to comply immediately.
“The Ministry of Finance keeps saying publicly that the law will be applied equally, without exception, when the reality is completely different,” it said.
“Through these unconstitutional and unlawful amendments, the core business activity of privileged operators has been exempted from taxation,” it added. The group has had some success in its pushback against previous controversial government measures, including the abandoned ban on the use of digital wallets for igaming in 2024.
In August, Montenegro’s new gambling legislation was enacted in a bid to modernise regulation and align with EU standards with new rules on licensing, financial transactions, customer verification, and advertising.
In December, the government rejected calls for a constitutional review of the new gambling legislation. Prime Minister Milojko Spajić has stressed that the government will no longer tolerate “grey areas” in gambling regulation.
