The HDZ government of Croatia has been warned that radical reforms to implement a new Gambling Law will indirectly impact 15,000 jobs.
The warning comes from The Croatian Association of Gambling Operators (HUPIS) who cite that proposed measures sought by Prime Minister Andrej Plenković represent an excessive regulatory burden that will have severe consequences for the legal industry”.
Latest developments in Croatia, saw a Final Proposal of the Gambling Law submitted to Parliament. Reforms focus on four central pillars of applying new centralised controls, ending aggressive advertising, revising tax duties and authorisation fees and introducing a socially responsible charter for gambling licences.
PM Plenković has pledged to restructure Croatia’s gaming regulations during his third term, aiming to address the problem of gambling addiction, which affects 40,000 Croatians.
The final proposal plans to restrict gambling advertisements on internet platforms between 6 am and 11 pm, as well as on audiovisual and radio programmes and electronic publications. It also completely prohibits gambling advertising in print media and on public display surfaces.
The new licensing system includes changes to the taxation of winnings. Any betting winnings under 100 euros will be subject to a 10% tax rate, while lottery winnings within this amount will remain tax-exempt. Winnings exceeding 100 euros will face progressive taxation, ranging from 10% to 30%.
One significant change from the original draft is the requirement to remove self-service betting terminals from hospitality venues by 1 January 2026. The measure is expected to impact over 3,500 Croatian retail venues operating ‘kladomati’ gaming machines.
The project will be overseen by HDZ Deputy Dragan Primorac, to address the social challenges of gambling exposure including aggressive advertising, youth protections and the reporting of gambling disorders. Prior to enacting changes the HDZ government deemed that Croatian gambling venues had become “a point of failure.“
While HUPIS acknowledges the need to address gambling addiction and promote responsible gambling practices, they stress that the new rules regarding self-service betting terminals and strict advertising limits unfairly target legal operators who already adhere to safety standards.
Hupis believes that via cooperation with the gambling sector, improvements can be adopted without changes to the Gambling Law, as he current draft poses major threats to the legal gambling industry, employment opportunities, and state tax revenue.
The trade body predicts that the new regulations will result in the closure of approximately 70% of physical betting shops, jeopardising 8,000 direct and 15,000 indirect jobs. The shift towards unregulated platforms as a consequence of state restrictions could reduce tax income and weaken consumer protection standards.
Hupis insists that the government must engage in dialogue with industry experts to create balanced regulations that protect players without undermining the legal gaming industry. They advocate for measures that clearly distinguish between compliant operators and those acting outside the law.
Whilst the organisation supports consumer protection, excessive restrictions will harm the legal market while benefiting only unregulated and illegal operators. Hupis pointed to Germany Fourth Interstate market as a case study of the consequences of regulatory overreach which have been evident, as stringent bans and restrictions have led to a surge in unlicensed online operators targeting domestic consumers.”
HUPIS calls on lawmakers to revise the draft, considering its potential socio-economic impact, and urges collaborative efforts with stakeholders to develop practical solutions that preserve the legal gambling industry while safeguarding public health.
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