A body representing gambling operators in Croatia has warned the government that planned reforms could have an impact on 15,000 jobs.
In the Balkans region of southeastern Europe, the ruling administration is pressing ahead with planned reforms to the gambling sector, amid concerns of problem gambling, but the industry wants a rethink.
HUPIS (Croatian Association of Gambling Operators) insists the proposed measures would present an excessive demand on legal gambling operators, putting thousands of jobs at risk and the potential for growth in unregulated betting.
Prime Minister Andrej Plenkovic is presiding over the final proposal of the reform bill, which has been passed to parliament for consideration.
The draft legislation is centered around four pillars: a new centralised control system, a crackdown on “aggressive” advertising, revised taxes, and a socially responsible charter for gambling licenses.
Gambling harm is said to impact around 40,000 citizens in Croatia, with the PM determined to reshape the sector and regulations to address the problem.
The plans include restrictions on ads between 6 am and 11 pm, across online, TV, and radio, with a complete shutdown of all print and public display adverts.
Changes to the licensing system would include further taxes on winnings, with gains of under 100 Euros liable for a 10% tariff, but lottery winnings within this amount will remain tax-free.
A 10-30% ‘progressive’ tax scale for all winnings over 100 Euros has been included in the bill.
Further risks cited by HUPIS
One particular contentious issue, not included in the original draft bill, is the requirement to remove self-service betting terminals from hospitality venues by January 1, 2026.
The ‘kladomati’ gaming machines are thought to be present in around 3,500 retail outlets in Croatia.
While HUPIS is cognizant of the need to tackle gambling harms and acknowledges the need for action, they say the new plans are counter-productive. The collective believes the action against the terminals unfairly targets operators who are already complying with their responsibilities.
HUPIS wants the legislators to consult the sector to achieve improvements and changes, without the need for law reforms, but that doesn’t look likely.
The organisation is concerned that the new regulations could close 70% of retail betting stores, threatening 8,000 direct and 15,000 indirect jobs in Croatia.
It has also stressed that an imbalance of protections in the reforms will decrease tax returns for the government, while opening the door for unregulated gambling operators to fill the void caused by regulatory overreach.
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