In January 2024, Montenegro introduced amendments to its gambling laws that effectively ban the use of modern electronic payment methods, such as Apple Pay, PayPal, mobile banking, IPS, and e-banking. This move has sparked concerns within the global financial community, particularly in the European betting and iGaming sectors.
The controversial ban has led to significant public outcry and industry backlash. In response, revisions to the law are expected in August, although it remains unclear if these changes will address the raised concerns.
The issue gained media attention when the Minister of Finance stated that Montenegro has no obligation to comply with EU rules. This stance is surprising for a nation actively seeking EU membership and aiming to integrate into the digital business world.
In 2021, the European Commission urged Montenegro to enhance its efforts against money laundering. However, the January 2024 amendments appear to contradict this directive, potentially isolating the country from EU practices and global financial trends.
Since the start of 2024, Montenegro’s gambling sector has faced significant turmoil. The amendments, which mandate cash or specific terminal transactions, have caused business disruptions and investor uncertainty. A petition to halt the amendments garnered 25,000 signatures in just five days. Montenegro Bet, the country’s trade association, has submitted the petition to the assembly and initiated a constitutional review, while also engaging with international institutions to highlight the negative impacts.
Multiple operators are preparing legal actions, including a lawsuit before the International Court for Settlement of Investment Disputes, citing corrupt practices and unequal market access facilitated by the new law.
As August approaches, the industry and public are hopeful for revisions that will align Montenegro with EU standards and global financial trends. The prohibition of advanced online payment methods in favor of cash transactions remains a troubling development requiring urgent attention and action.