In a surprising move that has captured global attention, Montenegro recently introduced amendments to its gambling laws, imposing restrictions on modern electronic payment methods like Apple Pay and PayPal. This decision has sparked discussions, especially within the European betting and iGaming sectors.
The Contradictory Stance
What adds to the intrigue is the contradictory stance taken by Montenegro’s Minister of Finance. While the country actively pursues EU membership and aims to integrate into the digital business landscape, the assertion that Montenegro is not bound by EU rules creates a contradictory situation.
The backdrop to these results includes Montenegro receiving advice from the European Commission in 2021 to maintain measures against money laundering. However, the recent amendments appear to make a step oppositely, potentially distancing Montenegro from EU norms and global financial practices.
’’Montenegro has enacted amendments to its gambling laws that effectively ban the use of modern electronic payment methods, including Apple Pay, PayPal, mobile banking, IPS, and e-banking’’
The gambling industry, both locally and internationally, has responded with worry and pushback against the ban on electronic payments. This move is seen as hindering competition and preventing the growth of foreign-owned companies, including those from the United States. The industry fears job losses and economic repercussions due to these legislative changes.
Montenegro Bet, the country’s leading trade organization, has taken proactive steps to address these concerns. The brand submitted a petition to the country’s assembly and initiated a constitutional review, citing concerns over the amendments’ constitutionality. Also, they are engaging with international institutions to highlight the negative impacts and contradictions with EU directives.
Criticism against the revisions stems from concerns about EU law conflicts. Despite not being an EU member, Montenegro’s candidacy implies alignment with EU standards. The changes clash with crucial EU legal frameworks, including those addressing electronic payments and money laundering risks.
Local companies’ corrupt practices, aided by some Ministry of Finance members, aim to oust numerous operators, including US-based ones, denying fair market access.
This has sparked legal challenges, with operators gearing up for legal action, including pursuing claims in the International Court for Settlement of Investment Disputes.
Navigating Online Betting in Montenegro
The amendments directly impact online betting, restricting electronic payment options for bettors. This forces players to choose between visiting physical betting shops or using terminals for card payments, which is contrary to the global trend favoring digital payments.
Montenegro’s decision to limit electronic payments stands in contrast to global trends promoting electronic transactions for their transparency and efficiency. Bodies like Moneyval and the Financial Action Task Force (FATF) support digital solutions to mitigate money laundering risks.
The outlawing of advanced payment methods in favor of cash transactions raises concerns about money laundering vulnerabilities and investor confidence. Stakeholders at both national and international levels are urged to address these challenges promptly to ensure regulatory compliance and economic stability.
Montenegro’s gambling law amendments have sparked significant debate and raised questions about the country’s compliance with EU standards, its approach to digital business, and the implications for the gambling industry. The need for clarity, alignment with global practices, and collaborative action is paramount to navigate these challenges effectively.
Source:
”Montenegro Ministry Ignores EU Law and Bans Apple Pay, PayPal, Mobile Banking in Controversial Betting Law Amendments”, europeangaming.eu, May 28, 2024.