The Montenegrin Government has adopted a proposal to amend the Law on Personal Income Tax, introducing a uniform tax rate of 12% on all gambling winnings and abolishing the current tax-free threshold of €50.
It was noted that operators allegedly divide player winnings into multiple payouts to keep the amounts under €50, thereby avoiding taxation.
Under the current rules, winnings between €50 to €1,500 are taxed at 10%, and those above €1,500 are taxed at 15%.
The Government statement reads: “The proposed regulation aims to improve the taxation system for gambling winnings by introducing a single proportional tax rate of 12% instead of the current progressive model of 0%, 10% and 15%. One of the main objectives is to prevent abuses arising from the current progressive system.
“By introducing a single tax rate, the possibility of avoiding tax by splitting winnings into smaller amounts is reduced. The goal is also to increase the efficiency and transparency of the tax system and to ensure fairer treatment of all taxpayers. An important aim is to stabilise and potentially increase budget revenues from gambling taxes and, in the long term, to strengthen tax discipline and trust in the tax system.”
Meanwhile, in Q1 2026, state revenue from gambling reached €11.67m, a 29.35% year-on-year increase.
State revenue from online gambling reached €5.25m, up 40.06% year-on-year. Land-based betting generated €2.93m, an increase of 17.13%. Slot halls in €2.67m, up 54.70%, and casino games generated €807,405, a 21.56% decline.
The increase reflects improved regulation and the use of a real-time monitoring system that has enhanced transparency and facilitated revenue collection.
Last year, Montenegrin authorities blocked more than 450 unlicensed gambling websites, although illegal operators continue to adapt and find ways to operate despite these measures
