Thinking about opening a casino in Serbia?
Then you need to get familiar with Serbia's gambling compliance, which is a critical aspect for any entity involved in the gaming industry.
The law that governs everything gambling-related in the country is called the Law on Games of Chance, and it tells you exactly which games you can offer, how you have to run things, and how much you have to pay the government to run this sort of business.
In the rest of this article, we're going to get further into the nitty-gritty of gambling regulations in Serbia, with a focus on how you can get the license to open your casino doors, as well as all the things you need to do to follow the rules and keep your casino running smoothly.
Ready? Let's get into it.
1. Gambling Compliance Under Serbian Law
The Law on Games of Chance in Serbia provides a clear definition of "games of chance" to ensure that all gambling activities fall under the regulatory framework.
According to the law, games of chance are defined as activities where participants, upon payment, are given the opportunity to win money, goods, services, or rights.
The outcome of the game, whether a win or a loss, is not determined by the participant's skill or knowledge but rather by chance or an uncertain event.
To put it simply, it's got to cost money to play, and it has to be all about luck.
This way, gambling is separated from activities like playing sports or entering contests where you don't have to shell out any cash and where winning hinges on how good you are at the game.
2. Types of Gambling Activities Authorized in Serbia
The abovementioned definition obviously encompasses a wide range of gambling activities, such as roulette, blackjack, slot machines, sports betting, lotteries, and even bingo.
However, to know exactly which gambling activities you can perform in Serbia, we recommend you take a look at this catalog of games of chance.
As for how the Law itself categorizes games of chance, there are three types you should familiarize yourself with:
1. Classic Games of Chance are divided into two categories: basic classic games of chances, such as lottery and sports forecasting, and other classic games of chance, like fonto and SMS lottery.
2. Special Games of Chance, where casino-style, slot machine, and betting games fit in.
3. Prize Games in Goods and Services, where all participants have an equal chance to win pre-determined prizes in goods or services
Clear? Let's move on, then.
3. Offline and Online Gambling Regulations in Serbia: The Overview
In Serbia, the state holds the primary authority over gambling activities. However, it can allow businesses and entrepreneurs to operate games of chance.
How? Through a formal process where the entities must get the necessary permissions (gambling licenses) and meet specific requirements laid out by Serbian law.
In the following sections, we will explore in detail how these licenses are obtained and what legal entities and entrepreneurs need to know to comply with the regulations.
4. Gambling License Requirements in Serbia
If you want to be a high roller in the Serbian casino business, you need to know two things:
• Opening a casino in Serbia requires some serious money,
• There's limited space at the table.
The Serbian government only doles out a maximum of ten licenses for organizing games of chance in casinos, and each license is valid for only one single casino. That means competition can be fierce!
Note: This applies only to casinos. It's important to remember that other forms of gambling, such as sports betting, can be launched without these restrictions and at a lower cost!
Next, you have to have a minimum of €1,000,000, aka the initial capital, in your company account upfront.
Oh, and you have to set aside an extra €300,000 per casino you want to open. This can be a straight-up deposit in a Serbian bank, or you can get a bank guarantee for that amount.
Basically, the government wants to make sure you can pay out winners and follow the rules, so they need some collateral.
Now, this might seem like a lot of cash to throw around, but hey, if you're going to be in the gambling business, you've got to be ready to play the game, right?
Don't worry, we'll cover more about the licensing process in the next section, including how to navigate the limited number of licenses available.
5. Gambling License Application Process for Casinos
Remember how we said that there are only a limited number of casino licenses available in Serbia?
Well, here's an explanation of how to get your hand on one:
Basically, the government issues licenses for organizing special games of chance in casinos based on a public call, which means that the openings for these licenses are announced publicly in the daily press.
In the public call, the government will specify the territory where the new casinos can be opened, likely considering factors such as regional development and making sure there aren't too many casinos concentrated in one area.
Once you see this opening, you'll need to provide several documents to the government along with your application for the license.
Here's what you'll need to submit:
• Proof of business registration , along with proof of how much money you have in the bank (remember that million euros we mentioned?)
• Ownership structure proof
• The founding act of your casino
• Proof of casino involvement, which means that you'll need to prove having been involved in running a casino or at least been part of the industry before
• Proof of running a casino for at least 5 years
• Your business plan for the next 3 years, at least
• Past financial statements and audits
• Proof that you've passed a criminal background check
• Alternatively, in some cases, you might need to sign a sworn statement saying you haven't been convicted of a crime.
• A set license fee offer and bank guarantee in the same amount
• Rules of the specific games you'll offer in your casino
Now, once you've jumped through all the hoops, submitted that mountain of paperwork, and finally gotten your Serbian casino license, don't get too comfortable just yet.
Your license is only good for 10 years.
After that decade is up, you'll need to reapply and prove you're still a responsible casino operator. If you play by the rules and keep your finances in order, the government will likely renew your license for another 10 years.
6. Gambling License Cost
Earlier, we mentioned that one of the documents you'll need to submit to obtain a gambling license is a set license fee offer and a bank guarantee in the same amount.
That amount, also known as the gambling license cost, is at least €500,000.
Oh, and you know about that renewal of your license for another decade?
To show their support for your gambling business, the Serbian government will only charge you another €500,000 for the renewal.
Funny, huh?
7. Contract for the Transfer of Rights: What's Next After Obtaining a Gambling License
So you got your casino license. But before you start rolling the dice and dealing the cards, there's one more thing you've got to do: sign a contract with the Serbian government.
This contract will include all the details of your casino operation, like:
• Your casino's name and headquarters address
• How much did you pay for the license
• The exact location of your casino
• How many gambling tables and machines will you have
• What kind of games are you allowed to offer (poker, slots, roulette, etc.)
• The official start date for your casino
• Other rights and obligations of the contractual parties
Basically, it's like a rulebook for your casino, ensuring everything runs smoothly and legally.
To sign this contract, you'll also have to prove that:
• You have the minimum required money (which we talked about earlier) in the bank.
• You paid the license fee within 30 days from the date of receipt of the decision granting the license.
• You've got a designated deposit and submitted authorization in favor of the Republic of Serbia, or a bank guarantee.
• You've got a security deposit in place.
• You own or have the legal right to use the building where your casino will be located.
This way, the government will be sure that you are financially sound and have a legitimate place to set up shop.
And remember: You have to start operating your casino within two years of getting your license and sign this contract within 45 days.
No time to waste!
8. The Consequences of Ignoring Gambling Compliance in Serbia
If you're thinking about running a casino without a license, here's a word to the wise: don't do it.
First things first, the Serbian government inspectors will shut down your casino immediately if they catch you, no questions asked.
And those fancy roulette tables and slot machines? They'll be gone, too.
The government will confiscate them all, along with any cash you have on hand and any paperwork related to the operation. Basically, they'll take everything you used (or could have used) to run your unlicensed casino.
To top it all off, you'll also be on the tab for the cost of taking all that stuff away and storing it.
As you can see, skipping the license is a major gamble, and one you're very likely to lose.
The Serbian government doesn't mess around when it comes to gambling compliance and regulations.
So play it safe, follow the process, and you'll be well on your way to casino success.
9. Ethical Gambling Compliance in Serbia
Did you know that the Serbian Law on Games of Chance demands social responsibility from anyone running a gambling business in Serbia?
While the government wants casinos to be fun and exciting, they also want to make sure people gamble safely and responsibly.
For you, as a casino owner, that means minors are strictly forbidden from gambling, so you're expected to have top-notch security measures in place to keep them out.
Your staff should also be trained to spot problem gamblers and know how to help them stay in control.
Next, you're expected to display posters and hand out flyers with information on gambling addiction and where to get help. Essentially, you should remind people to gamble responsibly and, again, let them know that minors are definitely not welcome.
(The Serbian government even lays out the exact size of the posters you must put up and what information they must contain.)
And lastly, privacy matters. You must keep your customers' personal information under lock and key.
We can only hope that you take these social responsibility rules seriously.
Gambling Compliance Consultancy
While this guide has equipped you with the necessary basics for opening a casino in Serbia, ensuring full compliance throughout the process requires the expertise of a gambling compliance consultant.
Why?
Because an experienced attorney as a consultant can provide invaluable guidance on the specific details or interpretations of gambling compliance regulations in Serbia, especially the ones beyond the scope of this article which could majorly impact your operations.
They'll also help you with compiling documentation and preparing a bulletproof license application to ensure it meets all the requirements for approval.
Launch a socially responsible and profitable casino in Serbia - contact a gambling compliance consultant today.
