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Montenegro Faces Scrutiny Over Gambling Payment Restrictions


In the serene coastal nation of Montenegro, a legal amendment to the gambling regulations has sent ripples of concern through the industry. The adjustment to Article 68f of the country’s gambling law specifies a stark reduction in the methods through which players can fund their betting accounts. As stipulated, electronic payment platforms, including e-banking and mobile payments, now stand prohibited for such transactions.

The approved changes leave consumers with limited choices. Gamblers keen on engaging in online betting can opt to visit a physical betting shop to deposit cash, which would then be credited to their online betting accounts. A second route permits the use of payment cards, but again necessitates cardholders to make the transactions at terminals located in betting shops.

Representatives of Montenegro’s gambling sector are voicing their alarm over the potential repercussions of the legislative alterations. Montenegro Bet, a trade association, has taken a firm stance against the amendment. Their representative, Jovana Klisić, delivered a stringent critique, spotlighting the potential jeopardy to job security within the gambling landscape. She contended that the industry is at a crucial juncture, highlighting that any adverse effect might resonate with dire consequences given that almost 2% of the workforce in Montenegro, a nation grappling with a 15% unemployment rate, is involved in the gambling business, either directly or indirectly.

In a demonstration of widespread disapproval, a petition aimed at forestalling the legislative change swiftly assembled a staggering 25,000 signatures, signifying approximately 8% of the country’s electorate, in a mere five days. The uproar is partly rooted in the perception that these amendments are at odds with the European Union (EU) law.

Montenegro is not currently an EU member state but harbors aspirations to join in the near future, a sentiment shared by an evidently pro-EU populace according to recent polls. Klisić illuminated five specific EU legal provisions with which the new amendments conflict, including Article 72 of the Montenegro-EU Stabilisation and Association Agreement, which dictates a harmonization with the Union in certain aspects for countries aiming to join.

Furthermore, the Payment Services Directive, which seeks to create a unified market for electronic payments, emerges as another point of contention highlighted by Klisić. The amendments also countermand the objectives of the EU 4 and 5AML Directive, emphasizing that cash transactions are high-risk operations in the realm of anti-money laundering.

This move away from electronic payments contrasts the EU’s recent initiatives, which are moving towards the introduction of a standardized “European Digital Identity” (e-ID) for its citizens. This e-ID would empower residents to validate their identities for online services, including gambling, a clear distinction from Montenegro’s stance limiting electronic payments.

EU proponents have been stern in their advice to Montenegro, urging the country to strengthen its anti-money laundering efforts in 2021. Klisić branded the national departure from online payment methods as an anomaly that strays from both EU principles and global financial inclinations.

Amid growing resistance, Montenegro Bet has submitted the petition to the nation’s assembly and called for a constitutional review to address potential breaches. The association is not idle, proactively engaging with international entities to underscore the detrimental consequences of the law changes and their discord with EU directives on the subject.

The support garnered by Montenegro Bet offers a strong message about the industry’s trepidations concerning significant job losses and the broader economic ramifications of the legislative alterations. The overarching goal, as articulated by Klisić, is to realign Montenegro’s regulatory and financial frameworks with those of the EU and worldwide norms, a step paramount for a fair and competitive environment within the industry.

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