MONTENEGRO Law and Practice Contributed by: Luka Popović and Milana Savović, BDK Advokati
ing primary and secondary schools, schools for artis- tic education, educational and resource centres, and student dormitories), measured as a straight line from the nearest school building to the nearest entrance of the gaming venue. Previously, a minimum distance of 250 metres was required, but the method of measure- ment was not specified. The new Games of Chance Act establishes a stricter regulatory framework for advertising gambling activi- ties. All permitted advertising must include warnings that games of chance can lead to addiction and that individuals under 18 are prohibited from participation. Advertising of social responsibility initiatives by gam- ing operators is not considered advertising of games of chance, provided such advertisements include the required warnings and information on assistance for gambling-related issues. Operators may display their logo but must refrain from inviting participation in gambling. Advertising prohibitions do not apply to lottery games. The minimum share capital requirement for betting and gaming machine operators has increased from EUR75,000 to EUR200,000. For casinos, the manda- tory share capital has been reduced from EUR300,000 to EUR250,000. The required daily risk deposit for casinos is now set at a minimum of EUR150,000 for up to seven tables, with an additional minimum of EUR30,000 for each subsequent set of five tables. Betting operators must maintain a daily risk deposit of at least EUR300 per betting shop. For gaming machine operators with electronic roulettes, the risk deposit remains unchanged at a minimum of EUR5,000 per electronic roulette machine. Bank guarantees to secure payment of winnings to players and fulfil obligations to the government have been increased as follows: • casinos – EUR400,000; • betting ‒ EUR30,000 plus EUR3,000 for each bet- ting shop; and • gaming machines – EUR35,000 plus EUR3,000 for each venue. All operators must install video surveillance at the entrances and exits of gaming venues and retain foot-
age for a minimum of 90 days. Previously, this require- ment applied only to casinos. Social gaming A game qualifies as a game of chance only if it has all three mandatory features, as follows: • a consideration is paid; • the outcome is determined by chance; and • there is a prize of money, goods or services. Hence, social gaming is not considered a game of chance and is not regulated, and, despite the grow- ing concern of regulators in many jurisdictions over the potential risks this activity bears, it has not been under the spotlight of the Montenegrin regulator so far. Esports The current regulatory regime permits betting on esports, as the definition of betting is open enough to cover any type of uncertain event. Fantasy sports Betting on fantasy sports is permitted and is regularly offered in the market. The definition of betting is not restricted to real sports and can cover all sorts of vir- tual events, such as fantasy sports. Skill gaming Skill gaming, as such, is not regulated. When making a distinction between games of chance and games of skill, one should apply the “any chance” test. If the outcome of a game is, to any extent, determined by chance, it will fall within the games-of-chance cat- egory, on the condition that the other two elements – consideration and a prize in money, goods or services – are present as well. Blockchain or cryptocurrency To date, blockchain technology and cryptocurren- cies in general, and their application in the games-of- chance sector, have not been under the scrutiny of the regulator, as the current legislation does not provide for any restrictions related to the underlying technol- ogy of online gambling platforms, or to the use of cryptocurrencies. That said, given the lack of regula- tions, Montenegrin banks are reluctant to co-operate with companies dealing with cryptocurrencies, which
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