Croatia Doubles Gambling Revenue Funding for Social Programmes as Regulatory Overhaul Takes Hold

Croatia is preparing to channel more than €214 million from gambling-related revenues into social and public interest programmes next year, marking the largest distribution of its kind since the country began earmarking proceeds from games of chance for civic initiatives.

The increase, confirmed by State Treasurer Danijela Stepić, represents a sharp rise from the roughly €130 million allocated under the previous cycle. Most of the money, around €144 million, is expected to come from gambling activity during 2026, while nearly €70 million consists of funds left unused from 2025.

The expanded budget arrives as Zagreb continues one of the most significant restructurings of its gambling sector in recent years. The governing Croatian Democratic Union has spent much of 2025 and 2026 reshaping gambling legislation, presenting the changes as a response to mounting social costs linked to betting and gaming.

Prime Minister Andrej Plenković accelerated amendments to the Games of Chance Act after securing a third consecutive term in office in 2024. The government framed the effort as an attempt to shift gambling policy away from industry interests and toward broader public benefit.

Health authorities have repeatedly warned about the scale of gambling-related harm in Croatia. Estimates suggest roughly 40,000 adults are dealing with severe gambling disorders, while studies have placed Croatian teenagers among the most vulnerable groups for problematic gambling behaviour in the Balkans.

Gambling reforms reshape funding model

Restrictions introduced over the past two years have altered the gambling landscape. Self-service betting terminals have been removed from cafés, restaurants, bars and kiosks, while betting venues have faced tighter rules, including measures preventing them from serving alcohol.

The fiscal side of the reforms has been equally substantial. Licence fees for online and land-based operators were raised by half, and taxation on winnings was redesigned under a tiered system. Players now face tax rates ranging from 10% to 30%, with the upper band applying to prizes between €1,500 and €70,000.

At a Ministry of Finance conference, Stepić outlined the framework that will determine how the enlarged fund is distributed. The annual regulation governing gambling revenues has been revised to establish clearer criteria and percentages for priority sectors, with allocations shaped by assessments of social needs and funding requirements across public institutions and civil society groups.

The Treasury intends to attach a more defined public interest mandate to the money generated under the updated Games of Chance Act. Funding is expected to remain available for a broad spectrum of programmes, including sports initiatives, addiction prevention and treatment services, social welfare projects, disability support organisations, cultural activities, technical education, youth programmes and wider civil society development.

Officials say the allocation model has been developed through discussions involving ministries, public agencies and non-governmental organisations. The proposal has now entered a public consultation phase.

For the government, the enlarged fund is meant to demonstrate that tougher gambling controls can produce visible social returns. The approach reflects a broader political message emerging from Zagreb: gambling revenues should not simply support state coffers, but be redirected toward programmes designed to address some of Croatia’s most persistent social challenges.

Source: sbcnews.co.uk

Croatia Doubles Gambling Revenue Funding for Social Programmes as Regulatory Overhaul Takes Hold

Gambling reforms reshape funding model

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