The Balkans today are not only a great location for opening an offline casino, but also a promising direction for launching iGaming projects. The share of online gambling in the region is growing at an impressive rate, and governments are actively working to improve gaming legislation. Unfortunately, some countries are tightening the rules for operators, but those who want to succeed in the gambling industry still have plenty of jurisdictions to choose from.
Continue reading to discover the most attractive Balkan destinations for obtaining a gambling license.
Croatia
Croatia is a rather closed and small market. The population of the country is 4 million, and a local iGaming permit costs €400,000 per year. This amount predictably repels potential operators.
In addition to the impressive permit cost, taxes are relatively high in Croatia. In the case of lottery and betting it is only 5%, then for casinos it is already 15%, and for slots it is even 25% of turnover.
To all of the above, it is worth adding that lotteries in Croatia are monopolized by the state, and to get a license for iGaming you must have the appropriate permit for an offline gaming enterprise. This works for both casinos and bookmakers, and the number of licensees in each category is limited to twenty. High business costs, as well as these restrictions, do not allow Croatia to become a popular place for launching gambling projects.
Bosnia and Herzegovina
Bosnia and Herzegovina is known as the largest bookmaker market in Europe, there was also a boom of all types of internet gambling recently — this makes the country interesting for operators.
Bosnia and Herzegovina is a federation, and therefore laws (including gambling regulation) are adopted and enforced at the regional level. Thus, iGaming is legal only in the Federation of Bosnia and Herzegovina and Republika Srpska, while the Brcko region prohibits it.
The first two regions issue licenses for online casinos and sportsbooks, but only to those projects that already have a permission to organize offline gambling establishments. The cost of obtaining the document is approximately $55,709.
Serbia
In Serbia, both online casinos and sportsbooks can be licensed. The only exception is the so-called “sports forecasting”, which is guessing the results of a predetermined list of matches. This type of activity, as well as lotteries and bingo, is monopolized by the state.
The annual fee for an offline casino license in Serbia is €500,000. At the same time online operators pay only €2,500 per month. Virtual sportsbooks are taxed at 15% of GGR, the tax rate for online casinos is slightly lower and is 10%. A huge advantage is the validity period of the license: the permit allows you to provide gambling services for 10 years.
Kosovo
The gambling industry in Kosovo is on pause after the tragic events of 2019, whentwo murders were committed in local casinos. To prevent the recurrence of such crimes, the Kosovo authorities introduced a ban on all types of gambling (except the state lottery).
It is worth noting that residents of Kosovo who want to play can freely visit foreign online casinos. The government of the jurisdiction makes no attempts to block or prohibit such resources.
Slovenia
According to the Gambling Law in Slovenia only operators owning an offline casino, betting or lottery license can obtain a permit to launch an iGaming project.
Lotteries and sports betting in Slovenia are monopolized by the state. No more than two classical gambling operators have the right to constantly operate in the country, and local authorities can issue no more than 15 permits for organizing specialized gambling in casinos and 45 permits for organizing specialized games in gambling clubs. To obtain such a document, the applicant must prove the existence of a minimum capital of €416,000 and a bank guarantee of at least 50% of this amount.
Over the last 10 years, the Slovenian government has tried to reform gaming legislation twice, but to no avail. The first attempt happened in 2013, and the second three years later, in 2016, when the initiators of the changes proposed allowing operators to obtain iGaming licenses without the need for having a permit for a land-based business. Unfortunately, this measure has not yet been approved.
Despite some decline in industry revenues during the pandemic, experts predict stable growth of the gambling market in Slovenia in the coming years.
North Macedonia
Officially, iGaming has been legal in North Macedonia since 2014, nonetheless, until 2020 only online lotteries were officially allowed. The government of the country owns a controlling stake in the National Video Lottery of the Republic of Macedonia, which is the holder of the first and to this day the only online license issued in the jurisdiction.
Since 2020, private gambling companies have been able to provide their online services in Macedonia. Local operators with a land-based gambling license may also offer online gambling. This does not apply only to lotteries, which are still a state monopoly.
Albania
Albania is perhaps the most closed market in the Balkans. All gambling types have been prohibited here since 2018. Such a radical decision was made by local authorities in order to protect the population from gambling addiction and prevent the organization of fake matches in professional sports. The only exception is legal casinos in five-star hotels, which, however, are intended for tourists.
The example of Albania confirms a simple truth: the forbidden fruit is the sweetest. The authorities’ refusal to issue concessions, as well as the lack of punishment for gambling, has led to a huge demand for offshore online casinos. Albanians actively play on foreign websites, easily bypassing their blocking using VPN services.
Cyprus
Offline casinos are legal in Cyprus, but remote gaming on the island is limited to bookmaking. Players can bet on sports, non-sports and cyber-sports events, but not horse racing, which is still the monopoly of the Nicosia Racecourse.
You can obtain a Cyprus betting permit by submitting an application to the National Betting Agency. The licensing fee for a one-year license is €30,000; a document valid for 2 years costs €45,000. Moreover, in both cases the applicant is obliged to provide a bank guarantee in the amount of €550,000. Licensed bookmakers are taxed at 13% of GGR.
Overall, the gambling industry in Cyprus is thriving. Last year, the sector’s gross gaming GGR was approximately €960,000,000, which is 22% more than the year before.
Greece
Greece is the largest player on the Balkans gaming stage. Gross gambling revenue from gambling in this country is more than Є2 billion. Good news for those wishing to launch an iGaming project in Europe: Greece issues an unlimited number of permits to online casino and betting platform operators . Moreover, the Greek license is valid for seven years.
What are the pitfalls of getting a permit in Greece? These are high document costs and hefty taxes. So, while operators pay only €10,000 to apply for a permit, the annual fee is €2,000,000 for an online casino and €3,000,000 for a sportsbook. The tax rate in the jurisdiction is 35% of gross gaming income.
Bulgaria
The Bulgarian market will soon catch up with the Greek one and reach two billion euro revenue. In this sunny country, offline gambling still prevails, but the online sector is quickly gaining momentum. Having a Bulgarian license allows operators to provide all types of gambling services on the Internet, with the exception of instant lotteries and drawings. Classic lotteries in the jurisdiction are a state monopoly.
The gambling industry in Bulgaria is regulated by the National Revenue Agency. Today, its employees are actively working to amend gambling legislation. It is still hard to say whether it is difficult to talk about the negative or positive impact of the upcoming reforms, but they will definitely affect both offline and online gambling in the country.
How much does a Bulgarian gambling license cost? The sum depends on the type of permission, however it varies between €55,000 and €70,000. Moreover, before submitting the application, the online casino operator is obliged to make an investment of €300,000; for the owner of a sportsbook the investment amount is €500,000. Also, all applicants must prove the availability of half a million euros as a security guarantee. The tax rate for gambling companies in the jurisdiction is 15%.
Romania
The country with the largest population in the region cannot yet boast of large gambling market volumes, but the industry is demonstrating stable growth. Thus, during the period from 2015 to 2019, the sector grew by a record 416%. These numbers continue to rise to this day.
The gambling sector in Romania is regulated by several legal acts. Currently, local authorities are thinking about improving industrial legislation regarding safety, technical requirements, marketing restrictions, etc.
iGaming licenses are issued by the National Gambling Bureau of Romania. Operators of remote casinos, sportsbooks, bingo, and lotteries can get the document. The lottery in the jurisdiction is monopolized by the state.
The application fee for a Romanian permit is very low — €2,500. However, in addition to this amount, the operator pays an administrative fee of €13,500, as well as a fee depending on the company’s turnover (ranging from €6,000 to €120,000). As a guarantee of security, the owner of a gambling business must have at least €100,000 on his bank account. The tax rate in Romania is 16% of GGR or €100,000 per year, plus a contribution of 2% of turnover.
Moldova
The iGaming sector is completely monopolized in this Balkan jurisdiction. Private licenses simply don’t exist in Moldova. Moreover, any advertising of gambling is not allowed there.
Conclusion
Summarizing the above mentioned, we conclude that the Balkans are an attractive destination for legalizing the iGaming project. At the same time, it’s worth taking a closer look not only at giants like Greece, Serbia, and Romania, but also at the less popular, but no less promising markets of Bulgaria and Bosnia and Herzegovina. Remember: the key to success is awareness, so before deciding to enter a particular jurisdiction, make a thorough. If you find it difficult to figure out by yourself, LicensingAid can come to the rescue.
Our team helps iGaming businesses with obtaining a license, opening a bank account, implementing AML standards, selecting a design for the platform, registering a trademark and much more. Leave a request and get advice on any issues that concern you.
