Balkan Gambling Industry Closes Ranks as Illegal Operators Gain Ground
Seven gambling associations from southeastern Europe have decided that acting alone is no longer enough.
Earlier this year, representatives from Serbia, Bulgaria, Croatia, Romania, Montenegro, Bosnia and Herzegovina and North Macedonia launched the Balkan Gaming Federation, a regional alliance designed to confront two problems that operators increasingly see as inseparable: tightening regulation and the rapid expansion of unlicensed gambling networks.
The federation emerged in March with a cooperation agreement signed in Belgrade. Its administrative base will be established in Croatia, while its first president is expected to be elected later this year. Even before its formal structure is complete, preparations are underway for a regional gathering of regulators, operators, experts and policymakers aimed at opening discussions that industry groups say have too often remained superficial.
The timing is not accidental.
Across the Balkans, licensed gambling companies describe themselves as being caught between escalating compliance obligations and an illegal market that has become more agile, more international and harder to contain. Industry leaders argue that restrictive policies, higher taxes and advertising limits are unintentionally pushing consumers toward operators that sit outside national oversight.
Regulation and Rising Costs
Miloš Lalević, vice president of Montenegro’s GPIS association and a former government official involved in European integration negotiations, believes governments frequently underestimate the role regulated operators already play in consumer protection and compliance. Licensed businesses invest heavily in responsible gambling programmes, anti-money laundering systems and technological safeguards, yet often remain treated primarily as a policy challenge rather than as partners in enforcement efforts.
That frustration reflects a broader shift in the region.
The Balkans were once viewed as a comparatively accessible market for gaming businesses looking to expand into Europe. Over the last several years, the picture has changed substantially.
Romania has introduced measures that have reshaped its land-based sector, including restrictions on slot operations in smaller communities and new authorisation requirements that leave significant decisions in the hands of local authorities. Industry participants argue that the combined impact of tax increases and municipal oversight has created uncertainty for operators already dealing with rising costs.
Bulgaria has pursued its own series of reforms, including limits on gambling activity in smaller towns, tighter advertising controls and an expanded self-exclusion framework.
Croatia, which now hosts the new federation, is carrying out an extensive regulatory overhaul of its own. Proposed measures include stricter advertising rules, enhanced player verification procedures and broader self-exclusion mechanisms, accompanied by increases in taxation and licensing expenses.
From the industry’s perspective, these developments carry unintended consequences. Consumers rarely stop gambling altogether when regulations become more restrictive. Instead, they often move toward platforms that operate beyond domestic supervision, outside tax systems and beyond established consumer protection standards.
A Growing Illegal Market
Evidence cited by industry organisations suggests that migration may already be taking place.
Data compiled by Gaming Compliance International estimates that regulated online gambling channels represented only a small share of activity across parts of southeastern Europe in 2025. The figures, covering Serbia, Montenegro, Croatia, Bulgaria, Romania and Slovenia, indicate that unlicensed operators dominate the online landscape.
For trade associations, the black market has evolved far beyond isolated offshore websites.
Read more It actually is a beautiful game: The World Cup experience, as told by a casual
Filip Jelavić, secretary general of Croatia’s HUPIS association, has spent years focusing on enforcement strategies aimed at illegal gambling providers. He describes the current environment as increasingly organised, with unlicensed companies using affiliate networks, influencers and social media campaigns to direct players toward platforms that offer little regulatory oversight.
The digital dimension of the problem has complicated enforcement. Operators can target customers across borders, process payments through international channels and adapt marketing tactics faster than legislation can evolve.
HUPIS believes Croatia’s experience offers a useful model for regional cooperation. The association has spent more than a decade developing approaches to identifying illegal operators and strengthening collaboration with payment providers, regulators and financial institutions. Federation members hope that sharing intelligence, investigative techniques and enforcement methods across borders will improve their ability to respond.
Seeking a Different Relationship with Governments
Beyond illegal gambling, the alliance also seeks something less tangible but potentially more significant: a change in the relationship between governments and the industry itself.
Lalević argues that consultations between regulators and gambling businesses already exist, but often fail to translate into policy outcomes that balance state interests with commercial realities. Tax collection remains important, yet industry representatives contend that regulated companies should also be regarded as partners in broader public policy goals, from consumer protection to responsible gambling initiatives and anti-money laundering efforts.
The federation’s strategy is built around the assumption that a collective regional voice will carry greater weight than national lobbying efforts pursued independently.
Its agenda extends beyond the Balkans.
Building a European Network
Discussions are planned with the European gaming association EUROMAT, with meetings expected in Bucharest later this year to explore closer coordination on illegal gambling enforcement and regulatory issues. November is expected to bring both the announcement of the federation’s inaugural president and the launch of the first Balkan gaming awards, an event intended to showcase regional operators and suppliers.
The coming months will offer an early indication of whether the federation can move beyond symbolic unity.
Montenegro’s ambition to complete European Union accession by 2028 adds another layer of complexity, particularly as governments across the region prepare for greater alignment on anti-money laundering rules, data protection requirements and emerging technologies such as artificial intelligence. Industry groups believe those discussions will increasingly intersect with gambling regulation, especially in areas linked to player safety and monitoring.
The First Test Ahead
For now, the federation’s founders appear united by a shared assessment: the biggest threat to regulated gambling markets may not come from competitors operating within the rules, but from a parallel ecosystem that has learned to thrive in the gaps between national borders and fragmented policy approaches.
Whether the organisation can turn that consensus into tangible influence remains uncertain. Its planned regulator roundtable, its efforts to deepen cooperation with European counterparts and its ability to shape policy debates will determine whether the Balkan Gaming Federation becomes a lasting political force or simply another industry association seeking a louder voice.
Read more Illinois Senate President Returns $50,000 Donation After Illegal Gambling Scrutiny Falls on Modo
Comments