Montenegro’s draft gambling law faces criticism over advertising limits and market fairness

A draft law on gambling in Montenegro has sparked controversy due to proposed restrictions on advertising and new regulations that could affect private operators. The law favors the state lottery while limiting the advertising and business opportunities of private gambling operators, raising concerns about free market principles and competition. Critics argue the law could violate both Montenegrin and EU laws, particularly regarding free market competition and freedom of expression.

Key points of concern include:

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1. Advertising restrictions: The law proposes a ban on advertising gambling on all websites except sports sites. Critics argue this could favor certain media outlets, discriminate against others, and violate freedom of expression. Private operators, who rely on advertising revenue, could face financial difficulties, undermining media independence.
2. Impact on private operators: The law introduces new restrictions on private gambling companies, including the abolition of the existing concession system and the introduction of an unclear approval process. This has been criticized as an obstacle to legal business operations and could harm the economic position of private companies in the sector.
3. Legal and constitutional concerns: Analysts warn that the law may conflict with the Montenegrin Constitution and EU directives, particularly concerning competition protection and freedom of commercial expression. Limiting advertising for private operators could be seen as an infringement on their constitutional rights, potentially violating EU rules on equal market treatment and free service provision.
4. Focus on state interests: The law’s primary focus appears to be on protecting state interests, with critics arguing that the needs of private operators have been ignored. Additionally, the law places significant emphasis on gambling’s social and health impacts, such as preventing addiction, but may not sufficiently address illegal gambling activities.
5. Payment restrictions: Another provision limits payment methods for gambling, which critics say could push customers towards unregulated operators offering more favorable conditions. This could harm the competitive balance in the market and lead to reduced tax revenues.

The Ministry of Finance, which introduced the law, has stated that the goal is to ensure a safer gambling environment while increasing state revenues and controlling financial crime. However, the proposed changes have sparked significant opposition from stakeholders, including private operators and media representatives. The public discussion on the draft law will continue until November 25, 2024.