Montenegro Government Rejects Constitutional Challenge to New Gambling Law
Montenegro’s government has declined requests to seek a constitutional review of recent changes to the country’s gambling legislation.
LISTEN TO THIS ARTICLE:In a written reply to industry groups, Prime Minister Milojko Spajić said the amendments to the Law on Games of Chance do not have retroactive effect and therefore do not violate constitutional protections. The contested provision, Article 106, alters concession rules for games of chance and had been challenged by several sector stakeholders including the national trade body NVO, the state lottery Lutrija Crne Gore and the association Montenegrobet.
Those groups argued the provision undermines protections against retroactive legislation, treats operators unequally by creating different rules depending on concession expiry dates and infringes on so-called acquired rights linked to existing licences. Montenegrobet warned that new compliance requirements, broader criminal-liability triggers and expanded grounds for licence revocation could destabilise the licensed market.
Responding to the complaints, Spajić wrote that the state’s exclusive mandate over games of chance is a matter of public interest and that organisers do not possess rights that would be infringed by the law. He pointed to a 270-day transitional period intended to give operators time to bring their business models into line with the new framework.
“After examining the submission, the government finds that the law does not have retroactive effect. The mandate over games of chance is of public interest, with exclusive rights for the state. Organisers, therefore, do not possess any rights that would be breached by the new legislation”, Spajić said.
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Industry Reaction and Wider Stakes
The government’s position is unlikely to end the dispute. Representatives of the sector say the changes could have material commercial and legal consequences for incumbents and new market entrants alike. In a statement to the press, a Montenegrobet spokesperson said: “These amendments impose unrealistic compliance obligations, broaden criminal exposure beyond reasonable limits and introduce licence-revocation mechanisms that are disproportionate. That combination risks driving investment away from a market that is already fragile.”
Legal experts monitoring the situation warned the constitutional argument may now shift into litigation before ordinary courts or administrative tribunals even if the government resists a formal referral to the Constitutional Court. “The distinction between regulatory reform and retroactivity can be technically narrow”, said Ana Petrović, a Montenegro-based gaming law specialist. “If operators can demonstrate substantive reliance on prior terms when making long-term investments, courts may be asked to weigh in on whether Article 106 crosses the constitutional line.”
The law sits alongside broader reforms pushed by Finance Minister Novica Vuković and a government keen to align Montenegro’s regulatory environment with European norms as part of its stated ambition of joining the European Union by 2028. Advertising curbs introduced in the package – limiting gambling promotions largely to logo placements in sports sections – have provoked a separate appeal from three major newspapers, which say the measures threaten their advertising revenues and disproportionately affect domestic private media.
Market consolidation continues even as the legal debate plays out. Fortuna Entertainment Group has taken a 51% stake in Lob, a Montenegrin operator with retail and online operations, signalling continued investor interest despite regulatory headwinds.
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Regulatory and Market Outlook
Key near-term milestones include the 270-day transition window for implementation and any follow-up secondary regulation or licensing guidance from Montenegro’s finance ministry and gambling regulator. Operators and media groups will be watching closely for the implementing rules that determine how Article 106 is applied in practice. While the government concluded there is no basis for a constitutional referral, affected parties retain routes to challenge administrative decisions and may pursue litigation that could ultimately reach higher courts.
For now, the decision leaves Montenegro’s gambling market in a period of legal uncertainty: operators must adapt to new obligations, media companies must contend with reduced advertising options, and policymakers face the task of balancing public-health goals, EU-alignment ambitions and the commercial viability of a regulated gambling sector.
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