Balkans
In Montenegro, Controversial Electronic Payments Ban Raises Serious Concerns
- Conflict with EU Law: Amid the country’s EU membership progress, the country’s legislation clashes with five key EU legal provisions, raising concerns about its alignment with the EU legal framework
- A variety of electronic payment methods like e-banking and mobile payments, defying global financial and payment standards are effectively disabled
- Over 25,000 signatures, representing approximately 8% of the national electorate, were gathered in just five days, signaling widespread public dissent
- This segment of the business accounts for 2% of Montenegro’s employment, faces significant risks due to the operational and economic repercussions of the new legislative changes
- Key EU industry experts and think tanks have already raised concerns about the adverse solutions introduced in these provisions
In the Western Balkans, a legislative battle is currently underway, sending ripples through the European fin tech community. The Montenegro’s recent amendment to the Gambling Law, particularly Article 68f, has sparked a significant debate. This change, focusing on the limitation of deposit methods for online player accounts, is not just a local issue but resonates with broader EU legal standards and global financial practices.
We talked with Jovana Klisić, the representative of Montenegro Bet, the country’s leading trade association in the sector. Ms. Klisić, with years of experience and a deep understanding of both the local and international aspects of the business, offers a unique perspective on the implications of Montenegro’s regulatory changes and the ongoing institutional battle to mitigate such adverse regulatory treatment.
Article 68f in Stark Contradiction with Montenegrin and EU Legal Norms
Ms Klisic, can you briefly elaborate on what is the trouble with the Article 68f?
-The provision starkly contrasts with multiple EU directives and regulations. It directly opposes the Montenegro – EU Stabilization and Association Agreement, Article 72, which mandates alignment with the EU acquis. The Payment Services Directive (PSD2), aiming at an integrated market for electronic payments, is also at odds with this law. The PSD2 ensures equal conditions for both existing and new market players, fostering consumer protection and payment service transparency across the Union. However, Article 68f effectively denies electronic payment companies access to the EU market.
Furthermore, it conflicts with the EU 4 and 5AML Directive, where cash transactions are considered high risk. By limiting transactions to cash or card payments at physical locations, it inadequately addresses money laundering risks, as smaller cash transactions, often below 1,000 EUR, could potentially be used for money laundering purposes. Montenegro’s decision thus stands in contradiction to the EU’s vision of a digital, integrated financial system for both country members and candidates.
The disputed article also overlooks the obligations under the Montenegrin Law on Law on Administrative Procedure, which mandates public consultations in law and strategy preparation – a step seemingly bypassed in this case.
Also, to comply with the law in the present form, many locations need to satisfy minimum distance from the school in order to collect cash for deposits, which questions the sustainability of this controversial and illogical article.
Macroeconomic Repercussions: 2% of Montenegro’s Jobs at Stake
What broader impact does this legislative change have on the business and Montenegro’s economy?
The industry is facing a double-edged sword – operational inefficiencies and potential economic repercussions. With the sector directly and indirectly employing almost 2% of the country’s workforce in a 15% unemployment rate environment, any negative impact on this industry could have very harmful and far-reaching consequences. The removal of e-banking and newsagents for deposits, despite their compliance and transparency, not only affects operational efficiency but also jeopardizes jobs, echoing the detrimental effects on the broader economy of Montenegro.
A Unified Stand: Mobilizing 25,000 Voices for Fair Regulatory Treatment
In light of the challenges posed by Article 68f, what measures are being pursued to address these concerns?
Our approach is comprehensive and proactive. Montenegro Bet, our trade association with decades-long experience in pursuing and implementing EU-compatible regulatory solutions, has already initiated a constitutional review, raising concerns about the unconstitutionality of this provision.
Significantly, we’ve mobilized public support, culminating in a petition with over 25,000 signatures gathered in only five days – representing about 8% of the national electorate – which we’ve submitted to the Assembly. This remarkable show of public backing not only underscores the widespread concern but also highlights the risk of significant job losses in our industry, illustrating the potential economic repercussions of such legislative measures.
Additionally, we’re engaging with key international institutions, drawing attention to how this law stands in conflict with EU directives and global standards on anti-money laundering. Our overarching aim is to realign Montenegro’s regulatory framework with both EU and global financial norms, ensuring a just and transparent environment for the industry.
Montenegro’s Isolated Move Amid Globally Accepted Financial Practices
How does Article 68f align with global financial regulatory practices?
This article is an outlier when viewed against global trends. Internationally, there’s a clear shift towards reducing cash transactions in favor of electronic payments, as advocated by bodies like MONEYVAL and FATF. The global financial community is embracing digital solutions for their transparency and efficiency. Montenegro’s move, therefore, not only isolates it from EU practices but also from the global financial community’s direction.
In 2021, the European Commission urged Montenegro to intensify efforts in money laundering investigations and prosecution. The payment limitations set by Article 68f pose a significant risk of seeing Montenegro placed in a category of countries with heightened money laundering and terrorism financing risks.
Moreover, in 2022, the European Banking Authority (EBA) emphasized the need for every EU citizen, and by extension, countries aspiring to EU membership, to have access to basic online banking services. This directive aligns with the trend of increasing financial transactions being digitalized, a domain where e-banking and mobile banking services are getting closer to a status of commodity. However, Article 68f of the Law on Games of Chance in Montenegro excludes these crucial services, contradicting the EU’s stance on modern financial inclusivity.
What is the future outlook for Montenegro’s fintech industry in light of these changes?
It is at a crossroads; we can state without any exaggeration. Our immediate focus is on mitigating the negative impacts of this law. But looking ahead, we see this communication crisis as an opportunity to bring Montenegro’s financial practices in line with EU standards. It’s about more than just rectifying a single law; it’s about ensuring that Montenegro’s financial and regulatory frameworks are beneficial for a fair and competitive industry.
Balkans
Expanse Studios Launches in Bulgaria with Inbet
Expanse Studios, a leader in online gaming innovation, has secured a Bulgarian iGaming license and is now live on Inbet’s website. This expansion brings Expanse Studios’ popular game offerings including turn-based strategies gamified for iGaming, classic slots, traditional card games and the highly-acclaimed ones like Titan Roulette, Clown Fever Deluxe, Wild Icy Fruits, White Wild Whale and Joker Poker to Bulgarian players.
Diverse Gaming Portfolio Now Available to Bulgarian Players
With the Bulgarian market entry, Expanse Studios introduces a versatile gaming experience to Inbet’s platform. The offerings include a dynamic range of games tailored to diverse player preferences:
- Turn-based strategy games: Leveraging gamification, these games transform traditional strategy gameplay into engaging iGaming experiences, suitable for both novice and experienced players.
- Classic slots: Players will enjoy a variety of themed slots that combine traditional gameplay with modern graphics and sound.
- Traditional card games: A selection of popular card games offer something for every card game enthusiast.
- Titan Roulette: This standout feature, known for its immersive experience and innovative design, continues to be a favorite among roulette players.
Commitment to Quality and Compliance
Expanse Studios not only cultivates a diverse gaming library but also adheres to stringent regulatory standards to ensure a secure and fair gaming environment. The acquisition of the Bulgarian iGaming license is a testament to Expanse Studios’ commitment to compliance and excellence in the gaming industry.
The partnership between Expanse Studios and Inbet marks a significant milestone in Expanse Studios’ expansion efforts. By combining Expanse Studios’ innovative gaming solutions with Inbet’s established market presence, both entities are set to offer a superior gaming experience to players in Bulgaria and potentially beyond. As Expanse Studios continues to develop and release new games monthly, Bulgarian players can look forward to a continually evolving and enriching gaming landscape.
Balkans
Wazdan marks Croatian market entry with PSK partnership
Wazdan, the gain-focused developer behind some of the world’s most rewarding casino game experiences, has entered the Croatian market after signing with PSK, a leading operator in the country.
The provider is taking some of its most acclaimed slots live with the operator, including player-favourites such as 9 Coins™ 1000 Edition, Hot Slot™: Magic Bombs, Burning Stars 3™, which will become available to Croatian players for the very first time.
A prominent operator in the country since 1998, PSK is part of the internationally-known Fortuna Entertainment Group. With over 900 employees and a constantly growing player base, the brand is set to enrich its content offering with Wazdan’s titles.
Croatia marks the newest market entry for Wazdan, which further boosts its impressive European performance as a result of this deal. More partnerships in the country are expected to be announced in due course.
Radka Bacheva, Sales and Business Development at Wazdan: “Croatia is a country that boasts a fantastic amount of potential, so we’re delighted to be entering the market for the very first time with PSK, a top-tier operator.
“We’re bringing a range of our top-performing titles to its platform, and are excited to see the reception from Croatian players towards our mechanics. We’re confident this will be the start of a successful collaboration.”
Martina Pehar, Group Product Specialist at PSK said: “It’s an honour to welcome Wazdan to the Croatian market for the first time as part of this deal – we’ve seen the reception to their dynamic slots across the world, and we’re thrilled to be bringing them to our players.
“Wazdan bring a fantastic collection of their titles to our platform, including standouts such as Power of Gods: Hades and Clover Lady, that we’re sure our customers are going to embrace. We look forward to seeing the results!”
Balkans
Anakatech Incorporates GameArt’s High-Quality Slot Titles into Cutting-Edge Platform
Anakatech, a developer of platforms and comprehensive solutions for the iGaming sector, has entered into a partnership with GameArt, a developer of high-quality HTML5 slot games for both online and land-based casino operators. As per the deal, GameArt’s games are now integrated on Anakatech’s gaming platform.
Anakatech offers complete casino solutions with a portfolio of innovative online and mobile games. Through this collaboration, Anakatech enhances its platform by integrating GameArt’s exceptional games, further enriching the gaming experience for its partners and players alike.
Yauheni Charniuk, Account Manager at GameArt, said: “We are delighted to partner with Anakatech as this collaboration enables us to bring our high-quality online slot games to Anakatech’s partners and clients. We look forward to many years of working together!”
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