Montenegro rejects constitutional review of new gambling law

The Montenegrin government has formally rejected calls to review its recently amended gambling legislation, affirming that the new law does not violate constitutional protections. The decision follows a series of objections from industry stakeholders who argued that certain provisions of the law, particularly Article 106, could undermine legal rights and create unequal conditions among gambling operators.

Industry concerns over retroactive provisions

The objections were raised by the NVO, a national association representing businesses within the gambling sector, and Lutrija Crne Gore, Montenegro’s state lottery. Both parties contended that the newly introduced concession rules under Article 106 could violate constitutional safeguards against retroactive legislation. The concern is that operators with existing gambling licenses could see their “acquired rights” undermined by requirements that apply to licences already issued.

Montenegrobet, an association representing licensed Montenegrin gambling operators, also voiced significant apprehensions. The group argued that the updated regulations impose compliance obligations that are both unrealistic and disproportionately severe. They highlighted potential grounds for criminal liability and licence revocation that, in their view, could destabilise the legal market for gambling services. Industry representatives warned that such provisions could jeopardise investment confidence and disrupt business continuity for existing operators.

Government response and rationale

In response, Montenegro’s Prime Minister Milojko Spajić provided a written statement addressing the concerns. He stated:
“After examining the submission, the government finds that the law does not have retroactive effect. The mandate over games of chance is of public interest, with exclusive rights for the state. Organisers therefore do not possess any rights that would be breached by the new legislation.”

The prime minister emphasised that the government has introduced a transitional period of 270 days to allow all operators to align their business operations with the new requirements. He added:
“The government ensures a transitional period of 270 days to allow all organisers to align their business operations with the new requirements, in all fairness to all, regardless of who they might be.”

Spajić concluded that Article 106 does not contravene constitutional norms or international conventions and that there is no foreseeable basis for proceedings before the Constitutional Court regarding this provision. This decision marks a clear governmental position affirming that the law is legally sound and consistent with Montenegro’s broader public policy objectives.

Objectives behind the new gambling legislation

The recent amendments form part of the Montenegrin government’s wider strategy to modernise gambling regulation. Finance Minister Novica Vuković has spearheaded this legislative reform as part of the government’s pro-European agenda, which aims to align national legislation with EU standards in anticipation of potential European Union membership by 2028.

The legislation is designed to enhance public health measures and ensure the responsible operation of gambling activities. Key objectives include strengthening consumer protections, ensuring fairness in licensing procedures, and promoting economic recovery through regulated gambling revenues. These goals are seen as essential to fostering a transparent and sustainable gambling sector while balancing the interests of private operators and the state.

Controversy over advertising restrictions

Despite the government’s assurances, the amendments have generated significant criticism from domestic media outlets. Major newspapers, including Vijesti, Dan, and Pobjeda, argued that restrictions on gambling advertising disproportionately affect local media. The new rules limit promotional activity to logo placements within sports sections, reducing opportunities for traditional advertising revenue. Media stakeholders have warned that these limitations could threaten the financial viability of private media outlets, particularly those reliant on advertising income from gambling operators.

Critics have framed this issue as both a commercial and regulatory concern. While the government emphasises public health and consumer protection, opponents argue that the advertising limitations create a competitive disadvantage for domestic operators while privileging the state lottery and other controlled entities.

Industry consolidation and market developments

Amidst regulatory changes, Montenegro’s gambling sector has also seen notable market developments. Fortuna Entertainment Group (FEG), a leading international gaming company, has acquired a majority stake in Lob, a prominent Montenegrin betting operator with both retail and digital platforms. FEG now holds 51 percent of the company’s shares and has indicated that it may increase its stake in the future.

This acquisition reflects broader trends in the region, where international operators are investing in established local businesses to expand their footprint and leverage synergies in digital gaming and retail operations. Industry analysts suggest that consolidation may help operators navigate stricter regulatory requirements by providing greater financial stability and operational expertise.

Transitional period and compliance

The 270-day transitional period set by the government is intended to ensure that all operators have sufficient time to comply with the new regulatory requirements. This includes updating internal controls, revising operational practices, and adapting marketing strategies to align with the revised advertising rules. Legal experts have highlighted that such transitional measures are standard in regulatory reform, aiming to reduce disruption while maintaining the law’s enforceability.

During this period, operators are expected to submit revised compliance reports and obtain any necessary approvals from the relevant regulatory authorities. Failure to comply after the transitional period could result in penalties, including licence revocation or criminal liability for breaches deemed intentional.

Implications for investors and operators

The rejection of the constitutional review has significant implications for the Montenegrin gambling sector. It provides legal certainty for new entrants while signalling that the government is committed to enforcing stricter regulatory oversight. Investors are likely to view the clarified legal framework as a positive step toward stability, though ongoing concerns regarding advertising limitations and operational burdens remain.

Operators with expiring licences or pending concessions will need to engage proactively with regulators to ensure alignment with Article 106 requirements. The government’s stance suggests a careful balance between protecting public interest and providing a predictable business environment.

Alignment with EU standards

Montenegro’s updated gambling law aligns with broader EU regulatory practices, emphasizing transparency, consumer protection, and responsible gambling. By harmonising national legislation with European standards, the government aims to facilitate cross-border cooperation and prepare for eventual integration into the EU regulatory framework.

The law’s emphasis on public interest reflects the principle that gambling is a state-controlled activity with societal and economic implications. By establishing clear rules and transitional measures, the government seeks to create a sustainable framework that balances private sector participation with public accountability.

Looking forward

While the constitutional review has been rejected, debates surrounding the law are likely to continue, particularly regarding advertising limitations and market equity. Industry groups may pursue additional dialogue with the government to refine operational guidelines and address concerns about disproportionate compliance burdens.

At the same time, foreign investment interest, such as that demonstrated by Fortuna Entertainment Group’s acquisition, is expected to continue as operators seek opportunities in a regulated and stabilising market. The Montenegrin government has signalled that it intends to maintain a careful balance between economic growth, public interest, and regulatory oversight.

Conclusion

The Montenegrin government’s rejection of the constitutional review underscores its determination to modernise the gambling sector while safeguarding public interest and aligning with European standards. By clarifying the legal framework and providing a 270-day transitional period, the government has sought to balance regulatory enforcement with fairness to operators, demonstrating a pragmatic approach to reform.

While concerns from industry stakeholders and domestic media regarding advertising limitations and compliance obligations remain, the decision signals that Montenegro is committed to fostering a regulated, transparent, and sustainable gambling market. The recent acquisition by Fortuna Entertainment Group further illustrates growing investor confidence in a stabilising sector, suggesting that international and local operators alike see potential within a regulated framework.

Ultimately, the new gambling legislation represents more than a regulatory update—it is a strategic step toward EU harmonisation, economic recovery, and enhanced public protection. As operators adapt to the new legal landscape, the effectiveness of transitional measures, enforcement, and ongoing dialogue between the government and industry will determine whether Montenegro can successfully achieve a balanced, resilient, and responsible gambling environment.

FAQs

What does Article 106 of Montenegro’s gambling law cover?
Article 106 introduces updated concession rules, affecting how existing and new gambling licences are regulated.

Why was a constitutional review requested?
Industry groups argued that retroactive effects could violate constitutional protections and acquired rights of existing operators.

Did the government agree with these concerns?
No, Prime Minister Milojko Spajić confirmed the law does not violate constitutional norms and offers a transitional period for compliance.

What is the transitional period?
Operators have 270 days to adjust their business practices to comply with the new requirements.

How does the law affect gambling advertising?
Advertising is restricted to logo placements in sports sections, limiting traditional promotional channels.

Which industry stakeholders opposed the law?
NVO, Lutrija Crne Gore, and Montenegrobet were among the primary critics.

What is the government’s justification for the law?
The law prioritises public interest, responsible gambling, and alignment with European Union standards.

What recent industry changes have occurred in Montenegro?
Fortuna Entertainment Group acquired a 51 percent stake in Lob, a leading Montenegrin betting operator.

Does the law impact all operators equally?
Yes, the transitional measures aim to ensure fairness, although compliance obligations may vary by operator size and licence type.

How does the law relate to Montenegro’s EU ambitions?
It modernises gambling regulations to align with EU standards and demonstrates the government’s commitment to harmonisation ahead of potential EU membership.