MNEBet has formally submitted a constitutional initiative to assess the legality of recent amendments to tax regulations in the gambling sector. These changes, adopted in late 2025 and effective from January 1, 2026, have sparked concerns over their constitutionality and fairness.
Despite the Ministry of Finance’s assertions that the new laws apply equally to all operators, MNEBet claims that the reality is quite different. The organization alleges that the regulations appear to be crafted under the influence of select privileged interest groups, while regular operators face undue pressures, penalties, and administrative hurdles. Furthermore, the illegal gambling market is reportedly experiencing a troubling surge.
Concerns Over Compliance and Fairness
One of the most contentious issues is the short time frame given to all operators to adapt to the new tax obligations. MNEBet highlights that many were suddenly required to comply overnight without any supporting legal acts, guidelines, or technical instructions. In contrast, some favored operators reportedly received advance notice and managed to update their software to reflect the new tax calculations on betting tickets, even though the necessary regulations have yet to be issued.
Compounding these issues, certain operators remain unconnected to the state’s control system for data exchange with the Gambling Administration, despite being legally obligated to do so. The lack of action from relevant authorities in these cases raises further questions about the integrity of the regulatory environment.
The constitutional initiative emphasizes significant violations of the principles of equality and legal certainty. It argues that amendments to the Personal Income Tax Act effectively introduce a disparate tax treatment within the same industry. Profits from gaming machines, roulette, and casinos are left untaxed, while other betting winnings face high tax rates. This selective approach exempts specific groups from the tax system, creating an uneven playing field.
Impact on Market Competition
This model is seen as a direct infringement on market competition, favoring regional entities with a history of problematic business practices. MNEBet asserts that such regulations harm public interest and undermine state revenue. Rather than reducing the grey market, these institutional decisions may inadvertently reinforce it.
MNEBet plans to inform all relevant authorities in Montenegro, as well as pertinent international and European institutions, about the identified irregularities and contentious practices. This includes bodies responsible for competition, rule of law, and financial regulation. The organization is committed to pursuing legal action, both domestically and abroad, against all unlawful practices.
As the situation develops, the implications of this constitutional initiative could have significant effects on the gambling landscape in Montenegro and beyond.
