RGA slams Montenegro's "damaging" tax regime

The Remote Gambling Association (RGA) has criticised Montenegro’s “excessive” gambling taxation regime and called on the government to switch from a tax levied on consumer stakes to one based on gross profits.

The industry trade association hit out at Montenegro’s level of taxation at a recent RGA conference in the country, claiming the high levels and method of taxation would vastly increase the size of the black market which it estimates to be more than 50%.

Montenegro’s current regime, which levies on consumers’ stakes at 15%, has led to a petition calling for tax changes, signed by more than 20,000 people, being presented to parliament.

The RGA’s director of policy and projects Sue Rossiter said that the industry body was “very worried” about the ongoing situation in the country.

“There is a real threat that legal operators will have to close their businesses soon, and that gap in the market will be met by operators based outside of Montenegro who will pay no taxes,” she said.

“It would be extremely damaging for the industry, consumers and the government if all the good work on introducing a regulated market was threatened by excessive taxation,” Rossiter added.

The RGA recently called on the Portuguese government to adopt a similar approach after it was revealed the country was preparing to apply a turnover-based levy to sports betting once it regulates later this year.