Despite widespread regulation of gambling markets, illicit activity still poses a serious problem for regulators and law enforcement organisations across the world. These black market actors can pose a risk to players and operate outside the confines of the law. In recent news, Croatian gambling laws have been updated to address rising black market activity.
The gambling industry is changing rapidly, with this change accelerated by the development of new technology. As a result, laws and regulations must be reviewed and updated to ensure they address emerging trends. Let’s take a look at the new Croatian gambling laws and discuss how they are designed to tackle the black market.
Tackling the Black Market
The Croatian government has been taking steps to tackle black market gambling in the country for a number of years, with a mixed degree of success. Currently, the authorities implement an IP blocking strategy, which effectively bans black market websites from operating in the country. As many as 900 black market platforms have been blocked as a result, but unfortunately, this is just the tip of the iceberg.
Now, the Croatian government is taking a different approach. Instead of targeting black market sites directly, the focus will shift to the payment providers that facilitate them. By cutting off their financial lifelines, authorities hope they will be able to effectively deter black market operators from setting up shop in the country.
Preventing Problem Gambling
As well as tackling the black market, new Croatian gambling laws are being introduced to prevent and mitigate the impact of problem gambling, particularly among the country’s younger demographic.
New laws have been proposed to limit gambling advertising. These ads will be prohibited between 6 am and 11 pm, must not make use of celebrities for promotional purposes and must never be targeted to those under the age of 18.
In addition, new Croatian gambling laws will establish a self-exclusion scheme and ban public-facing businesses like restaurants from offering self-service betting terminals.
Changes to the Tax System
Finally, Croatian gambling laws are set to change in regard to taxes and licence fees imposed on operators. Currently, tax rates of 10%, 15%, 20% and 30% are imposed on winnings of up to €1,327.23, between €1,327.23-€3,981.68, between €3,981.69-€66,361.40 and more than €66,361.40 respectively. Under the new proposed rules, these thresholds will increase to €1,500, €1,500-€4,000, €4,000-€70,000 and above €70,000.
There will also be a steep increase in licence fees. Land-based and online casinos can expect to see licence fee increases of 50%, while land-based betting shop licence fees will increase by 50.7%.
Conclusion
New Croatian gambling laws promise to drastically overhaul the country’s existing regulations. These changes are designed to tackle black market activity, protect young and vulnerable players and increase revenue opportunities for the state. The strategy for tackling the black market, in particular, is a radically different approach than we’ve seen elsewhere. While we’ll need to wait to see how effective it is, it could serve as a framework that other countries could replicate should it prove to be a success.
