Serbia Gambling Law
Early Regulation and Changes in Serbia After the Yugoslav states separated in the 1990s, Serbia continued to keep the 1964 laws applied to all forms of gambling. This meant operators had to first gain a license from the government which quickly led to gambling becoming a state run operation. The gambling industry in Serbia is a very important source of profits and a sector of millions of dollars which attracts foreign investors in a large number. With the appropriate business license for gaming activities, an entrepreneur can easily set up casinos in Serbia, online casinos and betting clubs.
Serbia offers many choices for sports bettors, although the legality may be questionable at times. It is one of the six independent counties formed after the breakup of Yugoslavia. Serbia is landlocked country, positioned where Central Europe crosses into Southeastern Europe. Prior to 2008 Kosovo also formed part of Serbia, although now it is now recognized as an independent country by the majority of UN member states.
In this guide to online sports betting you can first find a quick overview of how the industry has developed in Serbia. Then the online betting is looked at along with the taxation laws applied to the public. Following this you can see how the different sites accommodate Serbian players before finishing off with thoughts on how sports betting in Serbia might change in the future.
Early Regulation and Changes in Serbia
After the Yugoslav states separated in the 1990s, Serbia continued to keep the 1964 laws applied to all forms of gambling. This meant operators had to first gain a license from the government which quickly led to gambling becoming a state run operation. Despite a casino opening in Belgrade in the late 1960s, the majority of operators were only allowed to offer a football forecasting game from dedicated kiosks and shops, which were also focused on the capital.
In the aftermath of the 1990s wars a lot of Serbia was left devastated both politically and structurally. In this environment sports betting and other forms of gambling attracted a strong criminal element and illegal bookmakers were easy to find. It was not until 2004, as the state moved to a more democratic government, that they were able to address this.
The Games Of Chance Act came into effect in 2005 [1] and allowed all forms of gambling to become regulated and opened up the door for private companies. Prior to this there were 300 legal betting shops in Serbia, a number which rose to 1,728 after the 2004 legislation and gaming taxes and fees provided €155m in revenue to the Serbian government in the three years to 2008 [2].
Despite the increase of legal sports betting operations the concentration still falls in and around Belgrade, and the unregulated operations are still rife throughout the rest of the country. The largest legal operator is the Meridan Group which operates many of the Belgrade shops and has launched their own online bookie after becoming licensed by Malta in 2008.
Legislation Introduced and Access to Gambling Sites Blocked
While the rise in online betting sites grew throughout the 2000s, it was not until 2011 that Serbia addressed the online betting industry with legislation[3]. Until that point any company could provide betting in Serbia without breaking any laws and without paying any taxes to the government. The legislation laid out the rules for operating an online business within its jurisdiction including taxes and charges along with the stipulation any company providing online games had to have servers with Serbia’s borders.
This was followed up a few months later when ISPs were instructed to block access to 70 gambling sites [4]. These included large industry names like Bwin.Party, 888, Betfair, Skybet and William Hill. This caused initial worries in the industry although it soon became apparent that the ISPs did not enforce the block, despite initial threats of prosecution, as they felt the order had no legal grounds. Some companies did pull out of their own accord due to legitimacy concerns elsewhere in the world, the fact the Serb market was not big enough to risk operating there or due to software deals they have with PlayTech, who also supply software to the Serbia’s State Lottery and their betting sites.
Overall the effects were far milder than expected as there has been no follow up to enforce these rules by the government. Furthermore there are no laws in place to prevent citizens using international betting sites so you can still access the majority of sites with no interference. Ensure the betting sites you choose are respectable and licensed if you choose to do this.
Serbia Gambling Law Changes
Serbian Gambling Taxes
There has been no indication from the state that they intend to tax profits individuals make from gambling. Even if this was to change, with many companies operating a grey market, with no clear enforcement by Serbia, it seems unlikely the systems would be in place to correctly tax the public.
You Can Access Foreign Online Sportsbooks But Euros Are the Best Option
Apart from the few state licensed operators there are some operators providing sports betting in the Serb language as well as customer support, although not a large number. The vast majority of sites however offer the major European languages and Russian. It is a similar story with trying to use the Dinar and in most cases when you deposit your funds will have to be exchanged and stored in Euros. This is a slight inconvenience as fees are normally deducted for currency conversions and you have to wager in Euros.
Deposits can be made using Serbian credit and debit cards, including those with Visa and MasterCard branding. E-Wallets such as Neteller and Skrill also provide a quick online method and by having your wallet in Euros, it can cut out some of the currency exchanges when moving funds between sites.
Possible Regulations to Come in Serbia
Serbia Gambling Laws
There were suggestions that Serbia may look to further regulate the online market in 2014 – although there has been no sign of this yet. As it is things seem set to continue as they are for now with a handful of state regulated sites among many international choices. This also makes sense when you consider that Serbia is attempting to join the EU soon, where it may be forced to allow EU licensed sites to operate regardless of anything implemented now.
References
[1]Serbia– A Regulatory Report – Chapter 2 – Gambling Compliance
[2]Serbia– A Regulatory Report – Chapter 3 – Gambling Compliance
[3]Serbia Creates Brand New and Well-Regulated Laws Concerning Online Gambling – JAKTA
[4]Serbia Orders Blocking of 70 Sites – Calvin Ayre
Gambling revenues are measured in millions of dollars making gambling business attractive for investors, as investments pay back quickly and one can open more gambling houses with time. However, not every country allows gambling. Therefore, if you opt to launch a network of betting clubs or online casinos, you should primarily study the laws and receive a corresponding license from the country.
This article tells how to obtain a gambling license in Serbia and reveals peculiarities and advantages of gambling conduct in this country.
Legalization for the purpose of unshadowing
2012, Serbia received associate membership in the European Union. To meet the requirements of the EU, the country started bringing the gambling business out of the shadow economy. Serbia passed a corresponding law, but it continues to fight against illegal casinos actively. Raids and roundups against illegal organizations are frequent in the country.
To bring gambling out of the shadow economy, Serbia obliged all gambling houses to obtain licenses from the Ministry of finance and economy. At the same time, very favorable conditions for running gambling activities were created. All types of gambling starting from land-based casinos, slot machines to betting houses, and online gambling are allowed here.
A battle against offshore
Legalization of gambling allows ensuring tax returns and tracking payments made between organizations and players. It gives a possibility to block accounts of operators that stay beyond the law. The latter include online casinos registered in offshore jurisdictions or working without a permit.
Therefore, to run a gambling business in Serbia, you should own a Serbian license only. Otherwise, the website will be blocked, payments frozen, and the casino blacklisted.
How to obtain a gambling license in Serbia
Serbia Gambling Law Philippines
Like in any other country where gambling is allowed, you have to fulfil definite requirements and conditions to get a permit for running a gambling business.
- According to the Serbian legislation, the company that offers and organizes casino games must be registered on the territory of the country only.
- If you opt to open an online casino, factor in that all servers must be located in Serbia. Also, the company must make sure that all data on transactions, winnings, and players is stored for 5 years.
- The next step is to open an account in one of the Serbian banks. That is required in order to deposit €150 thousand as a bank guarantee and have a risk-based amount of €10 thousand on your account.
- Afterwards the operator receives a 10-year’s renewable license from the Ministry of finance and economy.
One of the advantages of running a gambling business in Serbia is a very low gambling income tax – just 5%. However, it cannot be lower than €7.5 thousand. In addition, there is a monthly fee of €2.5 thousand for running gambling activities.
Currently, the gambling industry has just started to develop in Serbia, but due to low tax rates, it actively attracts foreign investors. The country allows all types and forms of gambling and contrary to the Russian legislation does not have special requirements to gambling premises or location.
Serbia Gambling Law 2020
The previous article told how to obtain a gambling license in Russia, revealed the requirements and types of licenses.