In North Macedonia, a public debate on the Draft Law on Games of Chance has revealed a sharp divide between the gambling industry and the nation's government.
Operators and industry employees argue that the changes could lead to around 10,000 job losses and a rise in illegal gambling activity. Government officials, however, say the reforms prioritise the public interest, particularly the protection of young people.
What do the proposed changes include?
Under the proposed legislation, gambling venues could not be located within 500 metres of primary or secondary schools. It would also introduce stricter advertising rules, including a ban on promotional materials displayed on the exterior of gambling establishments and restrictions on messaging that portrays gambling as a route to personal success or financial gain.
In addition, all gaming machines would be required to include geolocation (GPS) systems to enable real-time monitoring by the Public Revenue Office. The law would also limit the expansion of operating licences, change the taxation framework and introduce new fees for opening betting and payment outlets.
Debate intensifies over online gambling monopoly
In a recent public debate, the head of the State Lottery, Aleksandar Klimovski, supported the idea that the state-owned operator should retain a monopoly on online gambling. He said this would improve player protection and increase state revenues.
Meanwhile, the Association of Sports Betting Operators of Macedonia (ASOM) said the government is favouring the state-owned operator, arguing that this conflicts with free market principles and the constitution.
Additionally, Zoran Puhach, Secretary General of the European Organisation for Gaming Law (EOGL), issued warnings about the proposed changes. Puhač said a state monopoly on online gambling does not equal higher player protection, calling it a “frivolous argument in the 21st century”.
He further explained that gambling operators now use modern solutions that track player behaviour and flag risks. With a monopoly, he argued, the state would only lose additional income from licences and taxes that would otherwise be paid by private operators.
EOGL Secretary General criticises proposed taxation model
Puhač also strongly criticised the new taxation model, particularly the introduction of a minimum fixed fee of €1,000 per betting shop payment point.
Commenting on this, Puhač stated: "When the taxation base does not reach an amount of €1,000, you are directly taxing something that does not exist. If the real earnings are €500, you are taxed at €1,000. So, you are taxing the other €500 that do not exist, that is, you are pushing the company into a loss.’’
Authorities to review feedback ahead of amendment debate this week
Authorities said the comments are being analysed and will be revised if they are considered to contribute to the public interest. They also noted that the risk of job losses was taken into account when drafting the law, particularly due to the provisions on distance requirements between facilities.
The latest debate follows a recent request from the opposition VMRO–DPMNE parliamentary group for an urgent public hearing. An amendment discussion and second reading of the draft law are expected this week.
Last year, the total turnover of the gambling industry in North Macedonia reached €2.83bn, according to data obtained by local media from the Public Revenue Office
