Koprivica: We have stopped annual outflows of over 6 million euros to foreign gambling websites

For years, Montenegro experienced substantial financial outflows through transactions to foreign gambling websites—funds that were completely outside the control of the state, resulting in significant losses to the national budget. Specifically, for an extended period, domestic payment cards issued in Montenegro were used to transfer large sums to foreign operators of games of chance, i.e., to foreign merchants assigned a merchant category code (MCC) related to gambling and betting.

In 2022 alone, 4,911 payment cards were used for such transactions, with a total of 132,109 transactions amounting to €6,315,019.61. The trend continued in 2023, with 5,118 cards used to make 133,445 transactions, totaling €6,183,943.93.

This situation prevented the state from exercising any form of control over the organization of such games, or collecting revenues from them, not to mention the inability to manage or prevent gambling addiction and related social harms. These facts prompted a justified legislative intervention in 2023, resulting in a legal prohibition of:

1. Participation in foreign games of chance where stakes are paid from within Montenegro;
2. The collection of stakes in Montenegro for participation in games of chance organized abroad.

The outflow trend persisted into the first quarter of 2024, when 1,998 cards were used to conduct 30,367 transactions, amounting to €1,296,541.45. This led to a decisive intervention by the Coordinating Body for the protection and advancement of the public interest in the area of games of chance, in cooperation with the Administration for Games of Chance and the Central Bank.

The Coordinating Body conducted an in-depth analysis, issued guidelines and recommendations, and the Administration for Games of Chance responded efficiently by issuing a directive to all banks. The Central Bank then ensured effective enforcement. Both institutions are represented within the Coordinating Body.

All banks acted in accordance with legal requirements by blocking transactions identified as payments to foreign legal entities with a merchant category code for gambling and betting. Seven banks implemented the block in May 2024, one bank in June, and three additional banks in July 2024, following necessary technical adjustments and coordination with the Central Bank and the Administration for Games of Chance.

As a result of this comprehensive intervention, during the fourth quarter of 2024 and the first quarter of 2025, no payment cards were used for this purpose and not a single transaction was conducted toward such websites. Therefore, not a single euro was transferred abroad for these purposes in that period.

This outcome demonstrates the successful implementation of the legal framework and the effective coordination of competent institutions, ultimately serving to protect the national interest. This was also confirmed during the most recent session of the Coordinating Body.