The regulated gambling sector in Montenegro is going through a difficult time after the government announced a sudden change to the personal income tax regime to include gambling winnings. Operators have strongly protested the change, highlighting the lack of consultation, clear guidance, and time for implementation. This comes at a time when the country’s organised gambling sector is undergoing regulatory reforms, adding to operational challenges.
Montenegro’s Gambling Sector in Turmoil After Government Announces New Tax Regime: Key Insights
- On December 31, 2025, Montenegro’s Ministry of Finance informed licensed gambling operators that they had 24 hours to update their systems, incorporating the new tax regime.
- The government replaced the incumbent tax structure, which levied a15% tax on winnings above €300, with a new tiered tax regime. Operators were asked to apply the new tax calculations from January 1, 2026.
- The decision drew sharp criticism from gambling operators who protested the impossible deadline. They highlighted the lack of published fiscal analysis from the Finance Ministry explaining how the new tax regime would work.
Government Announces Change in Personal Tax Regime with a 24-hour Deadline
Montenegro’s Ministry of Finance has come under sharp criticism from licensed betting operators for updating the personal tax regime without consulting industry stakeholders. In a press release on Monday, January 5, the Ministry of Finance urged gambling operators to properly calculate and pay income tax on winnings from games of chance.
Authorities implemented the Law on Amendments to the Law on Personal Income Tax on January 1, 2026. Operators claim that at the end of December 2025, the ministry issued a 24-hour deadline to implement the new tax calculations. The progressive tax system replaces the incumbent 15% flat fee on winnings above €300.
The new tiered tax regime is as follows:
- 0% on winnings up to €50.00
- 10% on the part of the winnings from €50.01 to €1,500.00
- 15% on the part of the winnings above €1,500.00
Gambling operators will be responsible for calculating taxes and withholding the amount while paying out winnings. They must clear all tax payments for the previous month by the 15th of the current month.
An excerpt from the press release reads:
The organiser of games of chance has the obligation to calculate and withhold taxes with each payment or transfer of winnings. The Organiser is obliged to pay the calculated and suspended tax no later than the 15th of the month for the previous month.
The law also prescribes penalties ranging from €2,000 to €20,000 in case operators fail to calculate taxes on players’ winnings from games of chance or pay the state within the stipulated timeline.
The press release states:
The law prescribes a fine in the amount of 2,000 to 20,000 euros for a legal entity that, as a payer of winnings from games of chance, fails to calculate the tax, incorrectly calculates it, does not suspend it or fails to pay it within the legally prescribed period.
The tax administration will analyse all tax calculations and personal income tax payments from the winnings of games of chance. Operators will be penalised for failing to comply with the Law on Personal Income Tax.
The progressive tax framework applies to lotteries, betting games, and global jackpots. Casino games and slots have been excluded from the calculation. Industry stakeholders swiftly criticised this decision, questioning the logic behind different tax regimes within a single sector.
Industry Stakeholders Claim Privileged Organisers Exempt from Taxation
MontenegroBet, an association for gambling operators, penned an open letter criticising the government for its partial treatment of “privileged organisers” who are exempt from the tax regime change. It noted that while the government claims that the law applies equally, the ground reality is different.
The association’s letter reads:
The Ministry of Finance keeps saying in public appearances that the law will be applied equally, without exception, when the reality is completely different. While legal solutions are created to order and on the instructions of “consultants” for privileged operators, the illegal market is flourishing to proportions that were unimaginable just a few years ago.
Authorities have yet to respond to these allegations. The latest measure is part of a wider government initiative to reform the regulated gambling sector. Last week, the government cautioned media outlets and businesses against exploiting grey areas in gambling. The move came in the wake of officials intensifying enforcement from the beginning of 2026.
MontenegroBet questioned how “privileged organisers” had the information that enabled them to integrate the new tax calculations overnight, despite the lack of an official rulebook.
MontenegroBet’s letter reads:
The question arises as to how the privileged organisers had information that the others did not and solved the calculation of the tax on winnings on payment tickets almost on the same day as it was introduced, although there is still no rulebook.
The association further questions how some operators do not have the necessary software capacities to connect with state controls even after a year of operation. In the letter, they also question the lack of reactions from the competent ministries.
The letter states:
It is symptomatic that some of these organisers do not have enough software capacities to connect to the state control system, even a year after the entry into force of this legal obligation. In this case, there are no reactions from the competent Ministry, and the privileged organisers are still not connected to the new data exchange system with the Administration for Games of Chance in the manner prescribed by the Law on Games of Chance.