Categories: Industry

Foreign Gambling Sites in Croatia Facing New Legislation

Croatia is making some big changes to their online gambling industry. For years, gaming sites based in other countries had the ability to operate in Croatia freely. This week, the Ministry of Finance announced new legislation that will require foreign gambling sites in Croatia to register with the government.

The move comes in an attempt by Croatia to generate much-needed revenue from their gambling industry. According to the government, all sites based abroad that operate inside the country without a license will be considered illegal. With a population of more than 4 million and a GDP per capita of just over 26,000 in 2018, Croatia is trying hard to earn more money.

2019 Online Gambling Laws in Croatia

Croatia has implemented some pretty loose gambling laws over the years. After gaining independence from Yugoslavia in 1991, they quickly legalized almost all forms of traditional gambling to help boost their tourism industry.

Croatia established a set of online gambling laws in 2010 to regulate the industry, yet most betting sites based in other countries had free reign to operate here tax-free.

Interestingly, the government announced another plan to begin regulating foreign gambling sites in Croatia all the way back in 2014. According to that plan, foreign sites operating in the country would need to apply for a license and pay a fee.

This most recent move may come in response to a huge boost in Croatian gambling revenue over the past few years. In 2016, state-run gambling sites in the country reported record revenue earnings of more than 2.7 billion Kuna.

Next Steps for Foreign Gambling Sites in Croatia

It took nearly five years for an official plan to be put in place. Under the new legislation, foreign gambling sites will need to register with the government in order to operate freely. Sites attempting to promote their products in Croatia without a license will be considered illegal.

An exact tax amount for these sites to operate here has not yet been announced.

According to some reports, Croatia was missing out on taxing their online gambling industry worth up to two billion Kuna. That figure is not confirmed. Regardless of the exact amount, there’s no doubt they have been missing out on some valuable revenue.

Potential Issues with the New Online Gambling Legislature

The move to begin taxing the online gambling industry certainly makes sense, yet there are a few issues that may arise. Firstly, there are some arguing the additional taxes included are unfair to bettors in Croatia.

Land-based gambling establishments are able to tax up to 30% on winnings, causing many to turn to online wagering. Additional taxes online will hurt the industry, according to some.

Another issue is in the regulatory framework that Croatia implements to stop underage gambling. For years, those wanting to gamble in the country had to register on land in order to prove they were the legal age to place bets.

Online gambling sites in Europe that choose to continue operating in the country without a license won’t have the same regulations, and underage gamblers may actually be more inclined to use them.

Despite the potential issues for foreign gambling sites in Croatia needing a license to operate, most agree that this move is a smart one by the government. If the revenue reports are accurate, the government here will be earning a huge monetary boost with online regulation.

What do you think of this news? Will it affect the Croatian online gambling industry in a good or bad way? Let us know what you think in the comment section below!

Kevin Oldroyd

A longtime sports and gambling enthusiast, Kevin looks to present up-to-date and reliable information for readers. If he’s not writing, he’s probably watching MMA or playing blackjack.

Recent Posts

  • Gambling Laws
  • Industry

Two Sports Betting Bills Going to Governor’s Desk in Montana

By the end of the week, before the Easter holiday weekend, Montana’s Senate approved SB 330, making that two sports… Read More

April 22, 2019 4:23 pm
  • Gambling Laws
  • Industry

ESSA Wants New Zealand’s Online Gaming Market to Open

Despite having a huge number of gambling fans, New Zealand has yet to regulate its internet gaming market. ESSA, the… Read More

April 18, 2019 10:53 pm
  • Gambling Laws
  • Industry

Pennsylvania Sports Betting Revenue Finally Increases

Pennsylvania legalized sports betting more than 16 months ago. Until very recently, this industry has been hugely unsuccessful. Pennsylvania sports… Read More

April 18, 2019 4:20 pm
  • Gambling Laws
  • Industry

Indiana Sports Gambling Bill Will Not Include Online Betting

Indiana legislators are still working on the details of S 552, a sports betting bill that has passed another legislative… Read More

April 18, 2019 4:11 pm
  • Gambling Laws
  • Industry

Internet Gambling in Pennsylvania Launching in July

News is coming out that internet gambling in Pennsylvania will finally launch this summer. It’s a huge development for this… Read More

April 18, 2019 3:52 pm
  • Casino
  • Industry

Florida Lawmakers and Seminole Tribe Discuss New Gambling Agreement

Florida lawmakers are looking to expand gaming opportunities in the state, but they will have to carefully work with the… Read More

April 17, 2019 4:04 pm