Government: Amendments to the Gambling Act, betting terminals to leave cafes

The government has submitted the final proposal for amendments to the Gambling Act to parliamentary procedure from its session on Friday, and one of the novelties compared to the first reading is the obligation to remove self-service terminals in hospitality, known as betting terminals, with a transition period for adaptation to this legal provision set for the beginning of next year.

As highlighted by Deputy Prime Minister and Minister of Finance Marko Primorac, the social challenges regarding gambling include increased availability, aggressive advertising by gambling operators, participation of minors, and increased gambling addiction.

According to research, approximately five percent of the adult population and six percent of the younger adult population in Croatia have significant gambling problems. Primorac also noted that 73 percent of high school students have gambled at least once, and about 13 percent of high school students meet the criteria for a high level of gambling-related problems. It is estimated that the number of online players reaches 450,000, added the Minister of Finance.

The proposed amendments to the law are thus focused on four key areas – regulating new measures for socially responsible gambling, limiting aggressive advertising, regulating taxes and fees from gambling, and adopting regulations on measures for socially responsible gambling.

Limiting Sunday Operations

Regarding the introduction of measures for socially responsible gambling, there will be an obligation to identify all players in land-based establishments, standardization of the exclusion process for players, establishment of a register of excluded players to be maintained by the Croatian Institute of Public Health (HZJZ), as well as measures for revoking the right to operate gambling due to non-compliance with socially responsible gambling measures.

There is also a ban on self-service betting terminals, known as betting terminals, which are most commonly found in hospitality establishments, with a defined transition period for adaptation until January 1, 2026.

– All those who operate games in this way have enough time to respond to the changes – said the Minister of Finance.

According to the data presented, there are currently about 6,300 establishments that operate gambling, including slot clubs, casinos, and betting shops, with self-service betting machines leading the way, numbering nearly 3,700.

Establishments that operate gambling will also have their Sunday operations limited to a maximum of 16 working Sundays per year, following the legal regulation of working hours in retail. Additionally, the legal proposal includes measures to prevent the operation of illegal online operators.

Public Figures and Influencers Prohibited from Promoting Gambling

When it comes to limiting advertising, it includes a ban on advertising from 6 AM to 11 PM via the internet, in audio-visual and radio programs, and in electronic publications. There is also a ban on advertising gambling in printed media, on publicly visible surfaces, as well as a reduction in the external visibility of gambling spaces.

Sponsorship advertising is not necessarily prohibited, but it may only contain the name of the company, logo, and brand name of the operator.

– In other words, such sponsorship content must not have any characteristics that associate with gambling – said Primorac.

Among other things, the legal proposal includes a ban on the appearance of public figures and media influencers in gambling advertising, as well as a ban on their promotion by content creators on social media, known as influencers.

Higher Annual Fees and Taxes on Winnings

There are also measures regarding the regulation of taxes and fees, so the tax brackets for winnings will change. For betting winnings up to 100 euros, the tax rate will be 10 percent, while lottery winnings up to that amount will be tax-exempt; from 100 to 1,500 euros, the tax rate will be 10 percent in both areas, from 1,500 to 4,000 euros at 15 percent, from 4,000 to 70,000 euros at 20 percent, and above 70,000 euros, the tax rate on winnings will be 30 percent.

Regarding annual fees, for land-based casinos, per business establishment, it will increase from the current slightly over 66,000 euros to 100,000 euros, and for online casinos from slightly over 398,000 to 600,000 euros. According to the legal proposal, for land-based betting, the fee increases from 132,700 to 200,000 euros, and for online betting from 265,400 to 400,000 euros.

Finally, the fee per machine in slot clubs according to the proposed law is 2,000 euros, compared to the current 1,327; for roulette with up to six playing positions, it will be 8,000 euros, from the current 5,309 euros, while the annual fee for roulette with more than six playing positions will be 10,000 euros, compared to the current 6,636 euros.

Distance of Establishments from Schools and Religious Institutions

Primorac also addressed the issue of the distance of gambling establishments from educational institutions and religious sites. This legal proposal does not change that distance nor is it a subject that the law addresses, said Primorac, but explained that the government imposed restrictive measures on this issue in 2020, significantly reducing the number of locations where such establishments can be opened.

However, the fact is, noted Primorac, that in 2020, a large number of operators had valid licenses that are valid until October of this year, so they did not have to comply with the then-new legal provisions.

– Due to the expiration of the right to operate during 2025, it is estimated that 50-60 percent of betting shops will not meet the prescribed existing conditions regarding the distance from educational institutions and religious sites – emphasized Primorac in his presentation.

Plenković: We are Sending a Political Message About the Society We Want

Prime Minister Andrej Plenković stated in the introductory part of the government session that these are important amendments that send a political message about the society we want.

He stated that the law prescribes additional mechanisms that should prevent the development of gambling addiction and protect public health interests. The problem of gambling addiction is particularly present among the youth and is one of the pressing issues of our time, emphasized Plenković, adding that we are witnessing gambling and betting becoming a serious social problem.