Major pressure is mounting on the Ministry of Finance of Montenegro to explain its sudden application of a new tax plan on gambling winnings, with trade body MontenegroBet escalating the matter to legal review.
On 31 December, the Ministry informed Montenegro-licensed gambling operators that they had just 24 hours to update software and operating systems to comply with new tax rates on customer winnings, effective from 1 January.
Without any formal notice or consultation, licensees were instructed to abandon the previous flat 15% tax on winnings above €300. Under a revised plans, licences were ordered to exempt winnings of up to €50, and apply charges between €50.01 and €1,500 are subject to a 10% levy. A new threshold saw winnings exceeding €1,500 to be taxed at 15 per cent.
The abrupt rollout has triggered widespread chaos across the regulated market, with operators reporting that they had been given an “impossible timeline” to fulfil the Ministry’s command with no technical oversight provided to incumbents.
The Ministry has stated only that the amendments were introduced following recommendations from a committee led by MP Armen Šehović of the Europe Now Movement (PES).
In a response issued to iGamingExpert, MontenegroBet, the association for online gambling described the amendments as “quite problematic from a variety of standpoints, most importantly the regulatory and procedural one,” adding that it was “virtually impossible to comply consistently” within the 24-hour implementation window.
The association also raised concerns over unequal treatment within the tax framework, noting that slot machines, roulette and casino games have been exempted from the revised regime, while betting, lottery products and global jackpots remain subject to taxation.
“Beyond the operational chaos, there are serious questions about equal treatment under the law – particularly the fact that certain gaming activities (slots, roulette, casino) were exempted from taxation while betting products remain subject to it, not to mention the discretionary and arbitrary approach, fiscal discrimination and lack of ground in the overall taxation policy.”
MontenegroBet characterised the changes as fiscally discriminatory, citing what it described as a discretionary and arbitrary approach that runs counter to Montenegro’s broader taxation policy.
The association confirmed that the amendments are set to be challenged before Montenegro’s Constitutional Court. A petition has been issued to licences to provide irregularities in the adoption of the measures and concerns on unfair tax treatments
“We can confirm that the constitutionality of these amendments is currently being disputed before Montenegro’s Constitutional Court. The petition addresses both the procedural irregularities in how these measures were introduced and the fundamental issues around discriminatory tax treatment within the same industry. “
While the judicial review is ongoing, MontenegroBet said its members would continue to operate in compliance with Montenegro’s legal framework.
No grey in 2026
The dispute comes as Montenegro begins the phased rollout of reforms under its new Law on Games of Chance, introduced at the end of 2025, which aims to modernise the country’s gambling sector and bring it closer into alignment with EU regulatory standards.
At the start of the new year, Prime Minister Milojko Spajić warned Montenegrin businesses that the government would no longer tolerate “grey areas” in gambling regulation, signalling a tougher enforcement approach heading into 2026.
MontenegroBet underscored the importance of 2026 reforms concluding: “We’ll continue operating in compliance with Montenegro’s legal framework while the constitutional review process plays out.”
