Croatian gambling association warns that proposed new laws could close 70 per cent of legal venues
The Croatian Association of Gambling Operators (HUPIS) has voiced its ‘serious concerns’ about the Final Proposal of Amendments to the Games of Chance Act, which the Government of the Republic of Croatia has sent to the parliamentary procedure.
The bill calls for a complete ban on self-service terminals (ticket machines), mandatory identification of all players in physical branches and the establishment of a central register of excluded persons, under the jurisdiction of the Croatian Institute of Public Health. It would introduce strict prohibitions on advertising – including the press, public areas and external visibility of buildings and sanctions that include the deprivation of the right to organize in case of non-compliance with socially responsible measures.
HUPIS stated: “While we support the principles of corporate social responsibility and consumer protection, the proposed measures in their current form represent an undue regulatory burden that could have serious consequences for legal industry, employment and the state budget.
“Such measures, although formally aimed at protecting citizens, do not distinguish between legal operators who are already investing significant efforts in education, prevention and consumer protection, and those who operate outside the system. We warn that similar regulatory interventions in other countries have led to the opposite effects than expected.”
It highlighted that in Germany, strict bans and restrictions have led to an ‘explosive growth of unregulated online betting.’ In France, despite regulation, ‘illegal platforms continue to dominate a large part of the market.’ In Italy, the ban on advertising has ‘benefited precisely those who are outside the legal framework.’ In Australia, ‘despite increasingly stringent measures and restrictions, the black market in Australia counts billions of dollars a year.’
“The former head of the national crime agency openly warned that excessive regulation favors illegal operators who do not offer any protection to players, nor pay taxes to the state,” it added.
If the law is adopted without further corrections and without dialogue with the industry, Croatia risks the closure of a large number of physical branches, over 70 per cent along with the loss of thousands of jobs. Currently, the Croatian gambling industry employs over 8,000 people directly and more than 15,000 indirectly. There would also be an outflow of consumption through unregulated channels, whereby the state loses tax revenues and market control. This would weaken the role of legal operators, who are the only ones offering structured consumer protection measures.
HUPIS added: “HUPIS welcomes any form of cooperation with state institutions in order to achieve sustainable, responsible and transparent regulations. However, we warn that the law, in its current form, does not balance the need to protect consumers and preserve the legal market.”
“We call on the authorities to take into account the expert opinions of the industry, involve us in the dialogue and develop feasible and proportionate solutions that will really have the desired effect – protecting citizens, combating the grey economy and preserving jobs.”
