EUROMAT urges Croatia gambling reform pause
The European Gambling and Amusement Federation (EUROMAT) has formally urged the Croatian government to suspend its proposed reforms to the gambling sector and the associated increases in licence fees, citing significant procedural oversights in adhering to EU regulations.
On Friday, EUROMAT submitted an objection to the European Commission, contending that Croatia’s proposed amendments to its gambling regulations had not been officially notified through the EU’s Technical Regulations Information System (TRIS) procedures, as mandated.
The gambling industry representative body argues that the suggested alterations—including strict advertising controls and compulsory player identification for venue entry—could be perceived as market restrictions, potentially infringing upon EU law.
“The Croatian government should have paused its legislative efforts and adhered to the proper procedural framework,” stated EUROMAT President Jason Frost in an official statement. “The integrity of Europe’s single market is jeopardized when member states selectively follow legal requirements. Businesses require legal clarity, and we anticipate that the Commission will ensure Croatia fulfills its obligations.”
With the revised gambling act scheduled to take effect in just eight days, the European Commission has reached out to Croatia, as confirmed by its regulatory body, reminding them of their adherence to EU protocols.
Overview of Croatian Gambling Reforms
During a recent presentation, Croatia detailed its initiatives to amend gambling legislation, focusing on combating gambling addiction—a pressing issue in the nation.
Prime Minister Andrej Plenković emphasized the administration’s commitment to tightening gambling regulations in response to alarming statistics: 72.9% of high school students reported having gambled at least once, with 12.9% classified at high risk for gambling-related issues.
The proposed reforms encompass a robust regulatory framework for gambling advertising—highlighting a proposed ban on advertisements from 6 a.m. to 11 p.m. across television, radio, and online platforms, in addition to a prohibition on celebrity endorsements. Furthermore, a self-exclusion register for at-risk gamblers is set to be introduced.
In addressing EUROMAT’s and the European Commission’s concerns, Filip Jelavic, General Secretary of the Croatian Gaming Association, stated that the regulator welcomes the reminder regarding procedural correctness. “Legal certainty and predictability are fundamental for market stability. Any repercussions from procedural inadequacies will ultimately impact businesses and citizens alike,” Jelavic remarked. “Thus, it is crucial that the Croatian government respects its obligations and allows the European Commission to verify compliance with EU law before the reforms take effect.”
Tax Reforms and Rationale Behind Changes
In conjunction with the regulatory amendments, Croatia proposed substantial increases in gambling taxes and licensing fees.
Under the new regulations, online operators may face a staggering 50% increase in licensing fees to €398,168, while land-based casinos would see fees rise to €600,000—also a 50% increase. Additionally, betting shops would incur a tax hike to €200,000 from the previous €132,722.
In discussions with iGB last month, Marko Tomic, a partner at local law firm Siketić & Tomić, highlighted the political pressure influencing the government to implement stricter regulations due to the growing interest from international operators in the Croatian market.
Furthermore, the government aims to tackle illegal gambling sites that operate within its borders. “Addressing the presence of illegal gambling operators is pivotal, as is ensuring the protection of tax revenues from regulated operators who are paying significant licensing fees,” Tomic observed. “This remains our primary focus.”
Targeting Payment Providers
The Croatian government intends to collaborate closely with financial institutions and payment service providers to combat illegal gambling operations.
“Our primary focus will be on payment service providers, with the tax authority aiming to prohibit any transactions deemed suspicious, particularly those linked to illegal operators in Croatia,” Tomic elaborated. “Since the implementation of the IP blockade, over 900 websites have been blocked by government orders. However, enhanced control over payment transactions will likely be the most effective tool introduced.”
While these reforms are slated to take effect by January 2026, the recent EU intervention may delay this timeline.
If implemented, Croatia would align with other EU nations currently strengthening regulatory frameworks across their gambling markets. For instance, Ireland recently launched its new gambling regulator, enforcing advertising regulations to protect children and vulnerable populations by prohibiting gambling ads from 5:30 a.m. to 9 p.m. Similarly, the UK is revising its regulations to introduce more stringent controls over online slot stakes and marketing practices for operators.
