In Bosnia and Herzegovina, many municipalities introduced higher municipal fees on betting companies, averaging about BAM 20,000 per year per location, along with fines for non-compliance.
The specific municipal fees being introduced represent a local Government levy imposed on betting operators for the use of commercial premises within a municipality.
Around 30 municipalities and cities passed legislations introducing such fees. Meanwhile, almost 20 submitted similar legislation.
Bihać sets precedent after collecting nearly BAM 1m and winning court battles against operators
Bihać was the initiatior in enforcing the new municipal fee system on betting shops, making it a reference case for other cities in Bosnia and Herzegovina.
It has already won its court case at multiple levels, collected almost BAM 1m in fees and seen 12 betting shops leave the city as a result of the increased financial burden.
The city of Bihać entered legal proceedings with six betting companies after they challenged the legality of the municipal decision.
Using a conservative estimate of 2,000 betting shops across Bosnia and Herzegovina and assuming each municipality raises the annual fee to $11,900 per location, total costs for land-based operators would reach approximately $23.8m per year from this single municipal fee alone
Every attempt to overturn the City Council’s ruling, from the cantonal court to the Supreme Court of the Federation of BiH and the Competition Council of BiH, has so far failed, effectively upholding the municipality’s right to impose and collect the charges.
Bihać Mayor Elvedin Sedić said a final legal battle is now expected before the Constitutional Court of Bosnia and Herzegovina.
He noted that even if the City Council decision is declared unconstitutional, it cannot be applied retroactively. This means betting shops would still have to pay obligations to the city for two full years since the decision has been in force.
Operators face fines after registration deadline expires as municipal fee enforcement begins
The deadline for all betting shops to register their business premises and pay a communal fee of an average of BAM 20,000 per year per facility has expired in municipalities that demand it.
Those who have not registered can expect fines ranging from BAM 5,000 to BAM 10,000 for the company, plus BAM 1,000 to BAM 2,000 for the responsible person
Selmir Mujagić, the initiator of a citizens’ initiative to introduce fees on betting shops stated: ‘’Tens of millions of Bosnia-Herzegovina Convertible Mark’s will soon flow into local budgets. And this is only the beginning.”
Industry warns of sector contraction as betting shop numbers fall
This year, operator Mozzart Bet warned that the betting sector in the Federation of Bosnia and Herzegovina is already shrinking significantly. According to the company, the number of betting shops has fallen from 1,930 to 1,602 in two years, a decrease of 328 branches or around 17%.
It should be noted that the Federation of Bosnia and Herzegovina is one of the two main entities of Bosnia and Herzegovina, the other being Republika Srpska. Meanwhile, local Government units from across the whole country have joined the initiative to introduce municipal fees on betting shops. In Republika Srpska, the number of betting shops is estimated at up to 800.
Using a conservative estimate of 2,000 betting shops across Bosnia and Herzegovina and assuming each municipality raises the annual fee to $11,900 per location, total costs for land-based operators would reach approximately $23.8m per year from this single municipal fee alone.
In 2024, it was estimated that Bosnia and Herzegovina was the country with the highest number of registered betting shops per capita in Europe
