EU Body Calls for Croatia to Suspend Gambling Reforms
The European Gambling and Amusement Federation (Euromat) has asked the Croatian government to halt the implementation of its new Gambling Act, citing potential breaches of European Union (EU) regulations.
LISTEN TO THIS ARTICLE:Euromat issued the request after submitting a complaint to the European Commission on April 1 that Croatia didn't notify it of the new legislation as required under the mandatory TRIS procedure.
EU law requires member states to notify the Commission of national rules limiting market access or service provision. Non-compliance with the notification procedure may lead to suspension, fines, and infringement actions.
Euromat argues that the Croatian Gambling Act, set to take effect in some days, requires proper EU notification due to the significant changes it introduces. These include ID checks at venues, stricter advertising rules, restrictions on establishing new gambling venues, and a 23% tax increase.
The legislation further highlights the conflict between European states' sovereignty in regulating their gaming industry and their obligations to comply with EU Single Market rules, particularly in areas like advertising restrictions and responsible gambling.
We understand that the European Commission is in touch with the Croatian Government on this issue and I hope that the outcome of this is respect for EU law. Europe's Single Market is undermined by member states if they cherry pick legal compliance. Business needs legal certainty, and we are hopeful that the Commission will play its role in ensuring that Croatia respects its obligations.
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Operators Fear Adverse Impacts of Gambling Reform
In addition to international pressure, Croatia is also facing domestic opposition to its new gambling reforms. According to the Croatian Association of Game Operators (HUPIS), the new law could lead to 70% of licensed venues shutting down, over 12,000 job losses, and €140 million in lost tax revenue.
While acknowledging the need for responsible gambling initiatives, HUPIS argues that the new rules are too restrictive and might push players to unregulated sites.
We believe it is in the interest of all stakeholders – including the Croatian Government – that the legislative process is carried out in accordance with the European legal framework. Legal certainty and predictability are essential for market stability, and any potential financial consequences arising from procedural shortcomings are ultimately borne by businesses and citizens.
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