MNEBet has formally submitted a constitutional initiative to challenge the legality of new tax regulations affecting the gambling sector in Montenegro. These changes, adopted in late 2025 and effective from January 1, 2026, have raised significant concerns among operators in the industry.
The Ministry of Finance has consistently asserted that the laws apply equally to all operators. However, MNEBet argues that this is not the case. Evidence suggests that the regulatory framework has been tailored to benefit certain privileged interest groups while imposing undue pressure on compliant operators through sanctions and administrative barriers. This situation has coincided with a troubling rise in illegal gambling activities across the country.
One of the key issues highlighted by MNEBet is the abrupt implementation of new tax obligations, which were introduced without any accompanying regulations, guidelines, or technical instructions. Operators were expected to adapt overnight, creating an environment of uncertainty and confusion.
Moreover, it appears that some favored operators were forewarned about the changes. They managed to adjust their software solutions and present tax calculations on betting tickets on the very day the new regulations took effect, despite the absence of an official guideline. In contrast, other operators have been left without the necessary tools or support to comply.
Additionally, many of these favored operators have not connected to the state control system for data exchange with the Gambling Administration, a requirement mandated by law. The lack of enforcement by regulatory authorities in these cases raises further questions about the integrity of the system.
This constitutional initiative specifically points to a violation of the principle of equality and legal certainty. The amendments to the Law on Personal Income Tax effectively create a disparate tax treatment within the same industry. Winnings from gaming machines, roulette, and casinos remain untaxed, while other betting-related winnings are subjected to high tax rates. This disparity effectively exempts certain groups from the tax system, undermining fair competition in the market.
Such a model not only distorts market competition but also favors regional groups with a history of problematic business practices, ultimately harming public interest and the state budget. Instead of curbing the grey market, institutional decisions appear to reinforce it.
MNEBet plans to report these irregularities and questionable practices to all relevant institutions in Montenegro, as well as to international and European bodies responsible for competition protection, the rule of law, and financial regulation. The organization is committed to pursuing legal action against any unlawful activities, both domestically and abroad.
In summary, MNEBet’s initiative underscores significant concerns surrounding the recent changes to gambling tax laws in Montenegro, calling for a reevaluation of the legal framework to ensure fairness and compliance across the industry.
