North Macedonia Introduces State Monopoly on Online Gambling

North Macedonia has completed one of the region’s most significant gambling reforms by abandoning a model that allowed private participation in online betting and replacing it with full state control.

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The new Law on Games of Chance and Entertainment Games took effect on 14 July, ending a regulatory framework that had been in place since 2011. After nearly three years of political debate, withdrawn proposals and rewritten drafts, lawmakers approved legislation that reshapes almost every part of the country’s gambling sector.

Private online operators disappear

The most striking change is the creation of a state monopoly over online gambling.

Under the previous system, introduced in 2012, private companies could operate online gambling platforms only through partnerships where the state retained at least a 51% ownership stake and final decision-making power. The arrangement attracted foreign investors into joint ventures with the state lottery while keeping gambling activity inside a licensed and taxed market instead of pushing players toward offshore websites. North Macedonia also licensed B2B technology providers under that framework.

In reality, the shift away from private operators had already begun well before the law was approved.

Following the May 2024 parliamentary election, the new government made online gambling reform a political priority. By September that year, authorities had instructed the termination of licences held by several private operators, including NOVO VLT, Mozzart, 77 BITS, Vezuv and 2Win.mk. Most had operated alongside the state lottery under the earlier public-private model.

By the end of 2024, MegaWin was effectively the only licensed online gambling platform still active. Its continued operation was reportedly tied to unresolved legal proceedings, leaving it in an uncertain legal position and widely expected to cease operations before the new legislation came into force.

That meant Parliament was formalising a market that had already been largely cleared of private competitors.

New rules reshape the wider gambling market

The legislation leaves no room for private companies to operate online gambling directly. Instead, the state will manage all online products through a wholly state-owned joint-stock company.

Private firms can still participate, but only as technology or content suppliers. Rather than obtaining gambling licences, they must compete through public tenders if they want to provide services to the state operator. The previous licensing regime for B2B suppliers has been removed.

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Land-based gambling remains open to private businesses, although operators now face substantially tighter requirements.

Casinos and slot clubs will eventually need to stand at least 500 metres from primary and secondary schools. Operators must prove technical compliance before slot machines enter service, including GPS integration, proper registration and sealing. Suitability checks have also expanded to cover executives, board members, shareholders and business partners, while companies holding multiple licences must maintain separate minimum capital for each licence.

Advertising rules have also become considerably stricter.

Outdoor signage is limited to small displays measuring 30 by 100 centimetres, with limited exceptions for casinos located within three kilometres of national borders. Flashing or illuminated signs are banned, as are promotions suggesting gambling leads to financial success, social status or solutions to personal problems. Celebrity endorsements making similar suggestions are prohibited, and every gambling advertisement must clearly state that participation is restricted to adults and warn about the risk of addiction.

The law also reaches into social media. Promotional giveaways that rely on likes, shares or tags are now treated as gambling activities, requiring a licence and an upfront fee equal to 18% of the total prize value.

Most provisions will begin applying between six months and one year after 14 July. The new location rules for land-based venues and GPS requirements will take effect from 1 January 2028.

A tougher market with an uncertain outcome

The reform strengthens oversight across much of the gambling industry through tighter licensing standards, stronger advertising restrictions and additional compliance obligations.

The bigger unknown is whether a state-run online monopoly can keep players inside the regulated market.

Analysts following the legislation point out that offshore gambling websites often compete through broader game selections, more attractive promotions and more advanced digital platforms. If licensed domestic options become less competitive, players could increasingly turn to unlicensed operators, weakening tax collection and reducing the consumer protections the reform is intended to strengthen.

While many of the new rules affecting casinos and betting shops broadly reflect regulatory trends seen elsewhere in Europe, the decision to reserve online gambling entirely for the state sets North Macedonia on a different course. Whether that approach succeeds will depend less on the legislation itself than on whether the new state operator can persuade players to stay within the regulated system.

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Source: igamingexpert.com