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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

Vermantia Powers the BEGE Awards at it’s 15th Anniversary!

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Vermantia Powers the BEGE Awards at it’s 15th Anniversary!
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The 15th anniversary of the Balkan Entertainment and Gaming Expo Awards is just around the corner, set to illuminate club Black&White in Sofia, Bulgaria on November 26th.

The BEGE Awards have become a benchmark for excellence in the gaming industry, recognizing innovators, game-changers, and trailblazers who’ve made a significant impact on the gaming landscape. The ceremony brings together industry leaders to celebrate their outstanding achievements and contributions.

A distinguished panel of experts will meticulously evaluate nominees based on a range of criteria, with the esteemed jury casting their votes to select the winners who will be honored at the prestigious awards ceremony.

🎉This year, we are thrilled to announce that Vermantia, a pioneering technology powerhouse that revolutionizes betting businesses with custom-made, exclusive data and picture content, has joined forces with us as a key sponsor. Their commitment to quality and innovation makes them a perfect partner for this celebration of excellence.Mark your 📅 and get ready to submit your nominations for the chance to recognize and reward the pioneers who are shaping the future of the gaming industry.

The nominations are opening soon, and you won’t want to miss this opportunity to be part of this prestigious event!

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Balkans

REEVO partners Slotino: Powering Up Bulgarian iGaming!

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REEVO partners Slotino: Powering Up Bulgarian iGaming!
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REEVO, is thrilled to announce its partnership with Slotino, a prominent online casino brand in the regulated Bulgarian market. This collaboration aims to bring an unparalleled gaming experience to Bulgarian players, leveraging the strengths and innovative approaches of both companies.

Vasil Stumbov, Slotino, commented:”We are delighted to partner with REEVO and bring the high-quality casino games on offer to our Bulgarian audience. As both companies have a strong focus on innovation, I’m sure we will establish a strong partnership, delivering even better player experiences and presenting the great content REEVO has to offer to our players.”

Petra Maria Poola, Head of Sales at REEVO, commented: “We are incredibly excited to partner with Slotino and bring our diverse portfolio of high-quality casino games to the Bulgarian market. Slotino’s commitment to localization and personalized player experiences aligns perfectly with our mission to innovate and enhance the iGaming industry. Together, we will provide an unparalleled gaming experience that will captivate and engage players, setting a new standard in the market.”

Partnership Highlights:

  • Enhanced Player Experience: The integration of REEVO’s diverse portfolio of high-quality casino games into Slotino’s platform will significantly enhance the player experience.
  • Innovative Solutions: The partnership will drive the development of unique features and offerings tailored for the Bulgarian market.
  • Localized Content: Slotino’s expertise in localization combined with REEVO’s extensive game library ensures a customized and engaging gaming experience for Bulgarian players.

The collaboration between REEVO and Slotino marks a significant step forward in the Bulgarian iGaming market. By combining Slotino’s detailed localization and unique product features with REEVO’s innovative game offerings and aggregation solutions, the partnership aims to deliver an unmatched gaming experience to players.

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Balkans

Gaming Corps lands in Bulgaria with Kaizen Gaming deal

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Gaming Corps lands in Bulgaria with Kaizen Gaming deal
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Gaming Corps, a publicly-listed game studio based in Sweden that has earned a reputation for developing market-leading casino games, has expanded its global reach into Bulgaria through a major content partnership with Kaizen Gaming.

The deal means that Kaizen Gaming will be able to offer Gaming Corp’s full suite of games to its players on an exclusive basis for the next six months before the studio can strike additional partnerships with other operators in the market.

Kaizen Gaming operates the hugely popular Betano and Stoiximan brands in Bulgaria, a market that has gone from strength to strength since regulating online gambling back in 2012 with high consumer demand for online casino and slot content from new and exciting providers.

The partnership between Gaming Corps and Kaizen Gaming brings the studio’s internationally acclaimed slots to the Bulgarian market for the first time. This includes proven player-favourite titles like 777 Jackpot Diamond Hold & Win, Bon Bon Bonanza and Samba Soccer.

Players will also gain access to Gaming Corps hit portfolio of Smash4Cash™ titles, including both Piggy Smash and RAMPAGE! Smash4Cash™ which were launched earlier this year.

Danielle Calafato, CCO at Gaming Corps, said: “We could not ask for a better operator partner to make our debut in Bulgaria with. Kaizen Gaming operates two of the most popular brands in the market and we are thrilled to see of games land in its lobbies for the first time.

“Bulgaria is a thriving market with plenty of growth potential for operators that bring new and exciting content to their players. Kaizen Gaming has done just that through this partnership, and we are especially excited to see players engage with our Smash4CashTM titles.

“We are committed to expanding our reach into more regulated markets over the coming months as we continue to establish Gaming Corps as a major content provider.”

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