Finance community takes notice
Montenegro has caught the undivided attention of the global financial community after it altered a gambling law to effectively ban electronic payments.
ban all digital payment/banking methods, including Apple Pay, PayPal
Las Vegas-based iGaming industry insiders earlier this week revealed the “the troubling development” that has seen the Montenegro Ministry of Finance ban all digital payment and banking methods, including Apple Pay and PayPal.
The industry call for “urgent attention” in the Balkans nation came a few days after the country’s allegedly corruption-compromised Ministry of Finance stated that Montenegro: “has no obligation to comply with EU rules.”
Montenegro is in the running for European Union membership, but the amendment conflicts with EU law.
The response to the government’s hawkish statement has drawn worldwide attention to a gambling law amendment that, despite enactment back in January, hadn’t made headlines in the US or international press.
Pressure building
According to the Vegas insiders, Montenegrins haven’t been taking the ban sitting down. A petition championed by trade body Montenegro Bet calling for a halt to the gambling law amendment reportedly received 25,000 signatures, which equates to approximately 5% of the country’s electorate.
The trade body has since submitted the petition to the Montenegro Assembly which, driven by industry pressure and public reaction, has reportedly initiated a constitutional review of the law in August.
Montenegro’s stance not only isolates it from contemporary EU and global digital finance markets and practises, but also raises the risks of money laundering and lowering investor confidence.
an attempt to de facto expel multiple operators”
Sources point to a combination of allegedly corrupt local gambling firms and finance ministry officials as “an attempt to de facto expel multiple operators, including those based in U.S, clearly denying equal market access.”
Legal challenges forthcoming
The flaunting of EU law and the banning of the safest and most advanced digital payment methods in favor of cash transactions is a genuine concern for the financial community, with several legal challenges on the way.
A high-profile lawsuit is before the International Court for Settlement of Investment Disputes, while it is reported that multiple firms have moved toward legal action.
In the meantime, bettors in Montenegro still have to deposit cash or pay via bank card at brick-and-mortar betting shops in order to gamble.
