The new government of North Macedonia is going to introduce a number of major amendments to the Gambling Law. These reforms need to account for the country’s complex social and ethnic structure, as well as its relations with Balkan neighbors.
Ivan Kurochkin, Partner and Head of Eastern Europe Desk at 4H Agency, highlights in a brief overview the political dynamics and contradictions in North Macedonia, which is seeking to overhaul its gambling regulation system — one of the most complex in Europe.
In May, North Macedonia witnessed a decisive victory for the “Nationalist Allies” (VMRO-DPMNE) party, led by Gordana Siljanovska-Davkov, who became the country’s sixth president and the first woman in this role since gaining independence from the former Yugoslav Republic in 1991.
After being in opposition since 2017, the right-wing bloc led by Siljanovska-Davkov won a decisive majority in the Skopje’s Kuvendi (General Assembly). The bloc pledged to implement a “nationalist mandate” to “eradicate corruption and end economic woes,” to help North Macedonia meet the regulatory criteria for EU membership, where the country has not made significant progress since being granted candidate status in 2005.
Proposed amendments to the Gambling Law were initially approved by the General Assembly in February, but their implementation was stalled when former President Stevo Pendarovski refused to sign the decree, requesting further changes from the relevant departments.
The new nationalist government aims to undertake a restructuring of the gambling legislation in North Macedonia, addressing issues such as land-based licensing, tax adjustments, and control and oversight of online gambling activities.
These reforms are highly contentious, as the gambling sector is the largest private-sector employer in North Macedonia.
Summer of Unrest
This summer, the gambling industry in North Macedonia once again faced the threat of new restrictions. In July 2024, representatives of the Albanian minority and the Vlen political alliance initiated parliamentary discussions on amendments to the current Law on Games of Chance and Amusement Games (the “Gambling Law”).
These amendments propose limiting the issuance of gambling licenses and closing more than half of all land-based gambling establishments in the country.
Unfortunately, such issues are not new for North Macedonia’s gambling industry. The complex regulatory framework, ongoing conflicts among authorities, polarized public opinion, and other factors contribute to the instability and unpredictability of the sector.
Market Overview
As of summer 2024, gambling in North Macedonia is subject to detailed regulation, distinguishing the country from its stricter neighbors. Since 2019, there has been a noticeable increase in gambling participation, partly due to Kosovo’s ban on all forms of gambling. The gambling market began developing in the country in 2011, following the enactment of the Gambling Law.
In 2021, the gambling sector’s share of the country’s GDP was 4.58%. In comparison, the arts and entertainment sector contributed only 0.85%, and sports and recreation contributed 0.39%. In 2022, the government earned approximately €88 million ($96 million) from the gambling sector, according to the Ministry of Finance, compared to €61 million ($66 million) in 2018. Thus, the gambling sector’s contribution to North Macedonia’s economy increased by about 45% over five years.
The market lacks major international players, with the exception of Austrian company Novomatic. The sector is predominantly local, with land-based operators being privately owned and dispersed throughout the country. Nevertheless, gambling remains highly popular among the population: North Macedonia hosts over 1,000 land-based establishments, including gaming halls and sports betting points.
Gambling in North Macedonia
As previously mentioned, North Macedonia effectively regulates its gambling market under the Ministry of Finance. Currently, the following activities are legally and licensably operated: land-based casinos, sports betting, gaming halls, online gambling, and B2B suppliers.
According to the Gambling Law, licenses for these activities (excluding lotteries) are not limited in number and can be issued to any operator meeting the requirements. Lotteries are fully monopolized, and online gambling is effectively reserved for the National Video Lottery, a state monopoly established in 2013 in partnership with Casinos Austria. Private online gambling licenses have never been issued in North Macedonia.
License fees and conditions for different types of gambling activities vary. Land-based casinos have a license fee of €600,000 ($660,000) with a 20% monthly tax on gross gaming revenue (GGR) and a six-year validity period. Sports betting licenses cost €105,000 ($115,000) with the same 20% GGR tax and are valid for three years. Slot machine licenses require a fee of €78,750 ($86,000), also with a 20% GGR tax and a six-year validity period. Online gambling licenses are available for €50,000 ($54,500) with a minimum capital requirement of €40,000 ($43,600), a 0.5% income tax, and a four-year validity period. Finally, B2B suppliers must pay a license fee of €25,000 ($27,200) valid for four years.
The license conditions indicate that they are relatively accessible within the legal framework. In fact, casinos, gaming halls, and sports betting are very popular in North Macedonia, and the number of such land-based establishments is impressive. While the exact number of licenses issued for specific activities is difficult to determine, according to information from the Ministry of Finance, there are 29 licenses for gaming halls, 9 for casinos, and 7 for sports betting.
Entrenched camps…
The development of the gambling industry in North Macedonia reflects deep internal divisions on the issue, with ongoing political and social tensions shaping its future.
The 2016 anti-gambling campaign, triggered by the proposed construction of a casino in Mala Rečica, marked the beginning of a broader initiative that eventually gained nationwide support under the banner of Lëvizja Anti-Bixhoz.
Supported by the Albanian minority, which also influences politics in neighboring Albania and Kosovo (where gambling is mostly banned), the movement highlighted the cultural and political complexities that continue to affect the industry.
Despite the pressure, attempts to revise the Gambling Law have faced significant challenges. The 2022 proposal for a complete shutdown of the gambling sector was rejected by the government. Although new amendments introduced in February 2024 received substantial support, they were not finalized, leaving the industry in a state of uncertainty. The recent initiative by the Albanian minority coalition to revise the Gambling Law in July 2024 underscores the ongoing debate, but no substantial changes have been made yet.
Prospects for “Cautious Optimism”
North Macedonia is at a critical juncture. The future of the gambling industry is overshadowed by internal political conflicts, outdated legislation, and the risk of following the troubled path of its neighbors. Issues such as the lack of effective responsible gambling measures, weak anti-money laundering (AML) controls, poorly regulated advertising that provokes civil protests, and an underdeveloped online sector complicate the situation.
However, there are grounds for cautious optimism. The gambling industry in North Macedonia is well-established, with established rules and a degree of government support indicating potential for future growth. The fact that the sector remains regulated and licensed, despite numerous attempts to restrict it, suggests that further development is possible. If the country can overcome its internal disagreements and modernize its regulatory approach, the gambling sector could become more stable and progressive in the coming years.
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