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Montenegro Ministry Ignores EU Law and Bans Apple Pay, PayPal, Mobile Banking in Controversial Betting Law Amendments

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In a move that has raised eyebrows across the global financial community, including the European betting and iGaming sectors, Montenegro has enacted amendments to its gambling laws that effectively ban the use of modern electronic payment methods, including Apple Pay, PayPal, mobile banking, IPS, and e-banking

Ironically, the Minister of Finance stated a few days ago that the country has no obligation to comply with EU rules, a paradoxical stance for a nation actively seeking EU membership and aiming to integrate into the world of digital business.

In 2021, the European Commission urged Montenegro to strengthen its efforts to counter money laundering. However, the recent amendments move in the opposite direction, potentially isolating the country from EU practices and global financial community trends.

Since the beginning of 2024, however, Montenegro’s gambling sector has been in turmoil.

 

The Industry Response

The controversial ban on electronic payments seems designed to curb competition, preventing the growth of foreign-owned companies, including U.S. enterprises. This move contradicts global business practices and undermines the principles of competitive business. A petition calling to halt the change received 25,000 signatures, representing around 5% of the country’s electorate, in just five days. It highlighted the risk of significant job losses in the industry and the potential economic repercussions of such legislative measures.

Montenegro Bet, the country’s nationwide trade association, has submitted the petition to the country’s assembly and initiated a constitutional review, highlighting concerns over the unconstitutionality of the amendments. Additionally, they are working with international institutions to draw attention to the negative impacts of the law changes and their contradictions with EU directives. All those attempts have remained without a single institutional response.

 

Overview of Breaches of EU Acquis by Article 68f

Much of the backlash to the amendments comes from the view that they conflict with European Union (EU) law. While Montenegro isn’t currently in the EU, it is a candidate for membership and is expected to align its laws with EU standards. The amendments clash with several key EU legal provisions, including the TFEU, Payment Services Directive, which seeks to form an integrated market for electronic payments, and the EU 4 and 5AML Directives, which categorize cash transactions as high risk for money laundering.

 

Multiple Lawsuits Incoming

The combination of apparent corruptive practices orchestrated by local companies within the same industry and certain individuals within the Ministry of Finance results in an attempt to de facto expel multiple operators, including those based in U.S, clearly denying equal market access.

This has already led to substantial legal challenges. Multiple operators are preparing preliminary steps toward legal action, including a lawsuit before the International Court for Settlement of Investment Disputes.

 

A Cash and Retail-Loving Law in the Middle of the Digital Age

The amendment to Article 68f of Montenegro’s gambling law has sparked significant concern within the country’s gambling sector. The new law disables various electronic payment methods, such as e-banking and mobile payments, for depositing funds into betting accounts. This leaves bettors in Montenegro with only two options: they must either enter a betting shop to place a cash wager, which then transfers funds into their accounts, or pay via card, but only at a terminal in a betting shop.

This strange move forces players to go to a store just to fund their online accounts, which is inconvenient in a time when digital transfers should be the norm.

 

Defying Global Trends and AML Standards – What Next?

Montenegro’s move to limit electronic payments is an outlier among global trends. Internationally, there is a clear shift towards reducing cash transactions in favor of electronic payments, as advocated by bodies like Moneyval and the Financial Action Task Force (FATF). The global financial community is embracing digital solutions for their transparency and efficiency.

Montenegro’s stance not only isolates it from EU practices but also contradicts the direction of the global financial community, increasing the risk of money laundering and undermining investor confidence.

The prohibition of the safest and most advanced methods of online payment business, such as Apple Pay and PayPal, in favor of promoting cash transactions, is a troubling development that warrants urgent attention and action from both national and international stakeholders.

Balkans

BGaming extends Winbet partnership with Bulgarian launch

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BGaming extends Winbet partnership with Bulgarian launch
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Popular iGaming content provider BGaming has built on its long-term collaboration with Winbet by launching in the Bulgarian market with the operator.

As part of the deal, BGaming will integrate its creative portfolio with Winbet’s platform in Bulgaria, with games such as Minesweeper XY, Wild Cash and Bonanza Billion, made available to its players.

Winbet is one of Eastern and Central Europe’s leading brands, with a presence in markets such as Romania, Bulgaria, Serbia and Croatia. Its Bulgarian arm boasts more than 30 gaming halls in over 20 cities and enjoys a prominent position in the country’s entertainment space.

BGaming first partnered with Winbet in January, helping to elevate the operator’s platform in Romania with its striking and innovative content. Now, it will replicate this success and demonstrate the widespread appeal of its creations in another strategically significant market.

Olga Levshina, CCO at BGaming, said: “We are pleased to celebrate our ongoing partnership with Winbet by collaborating with them once again, this time in Bulgaria.

“So far this year, our titles have been positively received by Winbet’s players in Romania and we look forward to delivering our portfolio to a neighbouring market alongside this major brand.”

Victor Perenovski, Operations Director at Winbet, said: “BGaming’s content has proven quite popular with our users and a great expansion of our portfolio. We are happy to extend our agreement with BGaming’s new and exciting titles. This partnership is an important step in fulfilling our promise to our customers for high quality gaming experience and the most popular games from the best providers.

“The game provider’s portfolio has so much potential for attracting players and is based on detailed analysis of their preferences and behaviours. We anticipate a partnership that will continue to deliver positive results.”

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Balkans

Reevo Enters into Partnership with Elitbet.bg

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REEVO, a leading provider of cutting-edge gaming solutions, has partnered with ELITBET.bg, a rapidly expanding online gaming platform in Bulgaria. This collaboration marks a significant milestone in both companies’ commitment to delivering top-tier gaming experiences to players.

Tsvetelina Ivanova, Chief Operating Officer of ELITBET.bg, said: “We are thrilled to announce our partnership with REEVO, a renowned leader in iGaming. This collaboration signifies a significant step forward in our commitment to delivering exceptional gaming experiences to our players. We are proud to expand the game offer of our Online Casino with high-quality products from REEVO. Thanks to this new partnership, we will offer our users an increasingly high-quality gaming experience and demonstrate our ongoing commitment to providing the best gaming experience, exceeding the expectations of the iGaming world.”

Petra Poola, Head of Sales at REEVO, said: “Partnering with ELITBET.bg is an exciting opportunity for us to further extend our reach in the Bulgarian market. We are confident that our innovative gaming solutions will complement ELITBET.bg’s commitment to excellence, providing their players with an unmatched gaming experience. We look forward to a successful collaboration that will benefit both our companies and the players we serve.”

The partnership with REEVO will enhance ELITBET.bg’s already impressive game offering, bringing a wide range of innovative and engaging content to its online casino. Players can look forward to an enriched gaming experience, with access to some of the most popular and sought-after slot games and live casino options available in the market.

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Balkans

Belatra Games enters Serbian market through strategic partnership with MerkurXtip

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Belatra Games enters Serbian market through strategic partnership with MerkurXtip
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Belatra Games, the specialist online slots developer, has entered the Serbian market for the first time through a strategic partnership with Serbian sports betting and gaming operator, MerkurXtip.

This collaboration marks a significant milestone in Belatra’s ongoing efforts to broaden its European presence. MerkurXtip is a distinguished member of the German-based Gauselmann Group and has risen to become a key player in both offline and online gaming sectors across Serbia.

Through this partnership, Belatra Games will bring its entire portfolio to the Serbian market, offering players a rich selection of entertainment options. From classic slot games like the ‘Fruit Cocktail’ series to cutting-edge slots featuring a variety of bonuses, to multiple types of roulette (including European and American versions), bingo, and instant-win scratch games, Belatra’s offerings promise to captivate the Serbian gaming community.

Mikhail Voinich, Chief Business Development Officer, commented: “Partnerships are a cornerstone of Belatra’s development strategy, enabling us to expand our reach into new markets. Collaborating with MerkurXtip, a partner recognised for its expertise and professionalism in the Balkans region, has been a seamless and rewarding experience. In addition, the whole process has been supervised by our partners for the Balkans region, iGaming Advisor, who have assisted us every step of the way.”

Nenad Aleksić, Head of Online Business at MerkurXtip, followed: “This partnership strengthens Merkurxtip’s position as a leading gaming operator, offering an innovative gaming experience with original content through a diverse selection of exciting casino games now available on our platform.”

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