MONTENEGRO Law and Practice Contributed by: Luka Popović and Milana Savović, BDK Advokati
• promote betting and gambling as a lifestyle, or as values by which life problems are successfully and safely resolved; • suggest that skill can influence the outcome of the game if that is not the case; or • through the timing, location, or nature of advertis- ing, exert special pressure to participate in games of chance or belittle non-participation (such as encouraging participants in games of chance to recover losses, and similar). Advertising operators without a licence for games of chance and their services is prohibited through any type of media. Licensed operators are also banned from advertising on foreign TV programmes available in Montenegro or through other channels in ways that violate the conditions set by the Games of Chance Act. Advertising games of chance in public places is pro- hibited, except for branding on gaming venue exteri- ors or operators’ vehicles, provided it does not invite participation in gambling. The installation of illuminated advertisements, LED displays, and other types of screens on the exterior parts of premises for games of chance is prohibited and their exterior appearance must prevent visibility into the interior. These rules do not apply to casinos in five-star hotels. The advertising of games of chance on sports equip- ment is prohibited in all sports categories involving participants under the age of 18. 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. Additionally, advertising prohibitions do
of the restriction under the Games of Chance Act can trigger a fine of between EUR5,000 and EUR20,000. The Illicit Advertising Act does not prescribe fines for illicit advertising, but rather introduces the possibility of class action lawsuits against infringers. 10. Acquisitions and Changes of Control 10.1 Disclosure Requirements Disclosure requirements in the case of the acquisition of companies, where applicable, are not sector-spe- cific, in that there are no special requirements appli- cable to gambling companies only – there are general requirements that apply to any type of business. However, disclosure is required only in the case of a mandatory or voluntary takeover of joint stock compa- nies (which are subject to capital market and securi- ties regulations), and not in the case of the acquisition of, or change of control in, limited liability companies. A limited liability company is the corporate form of choice for most businesses in Montenegro, and the vehicle type currently utilised by all operators in the games-of-chance sector. The operator is obliged to notify the Games of Chance Administration of any change relating to a merger or acquisition, within five days from the date the change occurs. In the event of a merger, the right to organise games of chance is lost, unless the operator is the acquiring company in the merger. 10.2 Change of Corporate Control Triggers If the operator is registered as a joint stock company, the acquisition of direct or indirect control of at least 30% of the shares would trigger the obligation to launch a mandatory takeover bid by the acquirer. 10.3 Passive Investor Requirements There are no particular passive investor requirements in Montenegro in the case of acquisitions or changes of control of companies in general.
not apply to lottery games. 9.5 Sanctions/Penalties
An infringement of advertising restrictions prescribed by the Consumer Protection Act can trigger a fine of between EUR1,500 and EUR20,000, while a breach
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