In North Macedonia, while the gambling industry has grown steadily, its expansion has been overshadowed by a disturbing increase in violence associated with casinos and slot machine halls, including stabbings, robberies, and murders. The surge in criminal activity has fuelled grassroots anti-gambling efforts. Despite calls for urgent reform, progress has been slow. However, the new government appears committed to advancing necessary changes and might be on the path to reform an industry largely controlled by Austrian firms such as Novomatic and Casinos Austria.
“Casino security guard fends off knife attacker in Kumanovo.” “Man stabbed in casino brawl in Radovish.” “Police arrest ‘cocaine-dealer’ outside Tetovo casino.” “Gang attacks man at casino in Mogila village.” “Robbers raid Struga casino.”These headlines, reported by journalist David Ilieski over the course of a single month, captured the attention of many concerned North Macedonian citizens.
Grassroots movements and public frustration
The government’s slow response to these incidents and the lack of a unified national strategy fuelled public frustration. Grassroots movements intensified calls for stricter gambling regulations, particularly advocating for a ban on gambling venues near residential areas. They also argue that current laws are inadequately enforced, allowing for money laundering and tax evasion. Many are disillusioned with the alleged political establishment’s deep ties to the gambling industry, which they believe undermines efforts for meaningful reform.
Xhemal Abdiu, a youth worker from Mala Re?ica, became the symbol of the Anti-Gambling Movement after opposing a proposed casino near his home. His efforts led to the cancellation of the local project, but broader national reforms remained stalled. While neighbouring countries like Albania and Kosovo have enacted stricter gambling regulations, North Macedonia’s progress has been much slower. The Anti-Gambling Movement, which gained national traction in 2016, has received support from Albanian minority groups but struggled until now to secure significant regulatory changes.
However, after mobilising widespread citizen involvement, the movement’s demands were incorporated at the end of 2023 into draft legislation: proposed amendments to the regulatory framework governing gambling, the Law on Games of Chance.
A controversial draft law
The draft law introduces several controversial amendments aimed at tightening regulations on the betting industry:
– Betting venues, including shops and slot machine clubs, would be required to be located at least 500 meters from primary and secondary schools.
– Licence fees for operators would increase, with the fee for betting shops proposed to rise from EUR 105,000 to EUR 200,000.
– A 20 percent special tax would be imposed on casinos, betting shops, and slot machine clubs, based on their monthly net revenue, along with new rules proposed to curb financial data manipulation.
– Online gaming operators would face higher fees, including a 6 percent charge on lottery pay-ins, 20 percent on special game pay-ins, and 3 percent for system administration.
– Operators would be required to implement a “Supervisory Information System” linked to the Public Revenue Office to ensure proper oversight.
Industry’s opposition to the amendments
The ban on gambling establishments operating within 500 meters of schools was the Anti-Gambling Movement’s “core demand,” explained journalist David Ilieski. He added that “given the high concentration of schools and casinos in towns and cities, the ban could, in theory, force hundreds of casinos to close down or relocate to out-of-town areas.” This was also the proposal that faced the most opposition from the industry.
The Association of Betting Joints urged former President Stevo Pendarovski not to sign the bill, warning that the restriction could result in the closure of up to 98 percent of establishments and cause significant job losses. They claimed the potential closure of betting houses would force their 10,000 employees and their families to seek work abroad.
Novomatic’s Macedonian office described the 500-meter ban proposal as unworkable and “pure populism.” Some critics even suggested that the law might be designed to favour digital platforms over physical operators.
Former Austrian Ambassador Georg Woutsas, representing Novomatic and Casinos Austria’s interests, publicly criticised North Macedonia’s draft gambling amendments, warning they could damage the country’s reputation and cause significant losses. He also defended the Austrian operators, stating they adhere to strict player protection standards.
The industry contributes significantly to the GDP with tax revenues from gambling rising by 45 percent between 2018 and 2022.
Since its establishment in 2011, North Macedonia’s gambling market has been regulated by the Ministry of Finance and includes land-based casinos, sports betting, slot halls, and online gambling, mainly operated by Austrian companies.
Online gambling, on the other hand, remains largely monopolised by a state-controlled entity, limiting private sector involvement.
A last minute rejection
Despite industry’s opposition, the amendments were passed by a majority in parliament in February 2024 and sent to the president for approval, which is usually a mere formality. However, the president refused to sign the bill, citing inadequate debate, and returned it to parliament. At a follow-up hearing on 14 March, the legislation did not receive enough votes to pass.
Progress in regulatory updates
With the new administration led by President Gordana Siljanovska-Davkov (pictured above) and her Nationalist Allies (VMRO-DPMNE) taking office last May, there is a renewed focus on reforming the Gambling Act. Siljanovska-Davkov, North Macedonia’s first female president since its independence in 1991, has pledged to tackle corruption and economic challenges to align the country with EU standards. Proposed amendments to the Gambling Act, approved by the General Assembly in February 2024 but not signed into law by former President Pendarovski, will now be revisited by the new government.
The nationalist administration is set to address reforms focusing on land-based venue regulations, licensing fees, and oversight of online gambling. Despite resistance, the gambling industry remains a significant contributor to the GDP, and the updated regulations could introduce stricter licensing rules.
The gambling sector’s future is uncertain due to internal political conflicts, outdated regulations, and weak oversight. However, if North Macedonia can navigate its internal divisions and modernise its regulatory framework, the gambling industry may emerge as a more stable and progressive sector in the coming years.
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