In southeastern Europe, legal gambling operators are increasingly feeling the strain as illegal gambling activities spread across borders. Countries like Romania and Croatia are experiencing an expansion of unregulated operators, while licensed businesses grapple with rising costs and regulatory challenges. In response to these pressures, several operators have banded together to form a unified alliance.
In March 2023, seven nations established the Balkan Gaming Federation (BGF), which encompasses trade associations representing operators and suppliers from the Western Balkans, including Serbia, Bulgaria, Croatia, Romania, Montenegro, Bosnia and Herzegovina, and North Macedonia. The founders highlight two primary objectives: combating the illegal gambling market and advocating for reasonable regulatory practices in the region. They argue that these goals are intrinsically linked.
The federation aims to amplify the voice of an industry that feels besieged by regulatory pressures, a growing tax load, and a burgeoning black market.
The federation has already begun its work just a few months after its founding. Located in Croatia, BGF has outlined plans to elect its first president this autumn following the signing of its Memorandum of Cooperation in Belgrade.
In addition, BGF is organizing a significant roundtable involving regulators from the region to facilitate discussions between key industry players, independent experts, and government representatives. This initiative seeks to encourage open dialogue on issues such as regulation and black market activity, fostering collaboration instead of conflict.
“Licensed operators should not be viewed as part of the problem – they should be recognized as part of the solution,” said Miloš Lalević, vice president of GPIS Montenegro, a former deputy minister of sports and culture, and a member of Montenegro’s EU negotiation team. He emphasized that these operators are the ones who invest in compliance, responsible gambling initiatives, consumer protection, technological advancements, and anti-money laundering measures. Lalević added, “If governments want to effectively combat illegal gambling, they need strong and competitive regulated markets.”
Examining the gaming landscape in the Balkans over recent years, it becomes clear why industry operators feel marginalized and sometimes associated with negative perceptions. The region, once regarded as an affordable entry into European gaming, has faced a wave of stringent regulations alongside climbing operational costs.
Lalević pointed out that operators have often suffered due to “outdated perceptions.” He noted that regulators often overlook the significant economic contributions made by the industry. In Romania, where conditions are especially dire, the land-based slots sector is rapidly declining due to new local authorization laws that have emerged alongside recent tax increases and a ban on slot machines in smaller towns, leaving the industry at the discretion of local councils.
Bulgaria is facing similar challenges, with gambling bans in small towns and a nearly total advertising prohibition, coupled with an extended self-exclusion initiative—all enacted in recent years.
A similar overhaul is occurring in Croatia, where existing regulations on advertising, player identification, and self-exclusion are being tightened. The gambling industry there is also under pressure from sharp tax hikes and increased licensing fees.
“My concern is that, in many jurisdictions, there is still an insufficient understanding of the practical consequences certain regulatory measures can produce,” Lalević noted. “When regulation becomes excessively restrictive, the outcome is often the opposite of what policymakers intend. Players do not disappear from the market; they simply migrate to unlicensed operators that evade national regulators, tax authorities, and consumer protections. This is why the growth of the black market is among the most significant challenges facing our industry today.”
The illegal gambling market appears to be flourishing while legal operators struggle. Data from Gaming Compliance International (GCI) indicates that channelization in online gaming was merely 11% in the Balkans in 2025, meaning that illegal gaming captured 89% of the market. This data includes Serbia, Montenegro, Croatia, Bulgaria, Romania, and Slovenia, excluding Bosnia and North Macedonia.
Filip Jelavić, secretary general of the Croatian gaming association HUPIS, has considerable experience addressing the threat posed by illegal gaming. Both at the European and local levels, he has been actively pursuing new techniques to combat the black market. With Croatia serving as the federation's base, Jelavić believes HUPIS can foster stronger connections between Balkan nations and Europe, providing essential expertise to safeguard the regulated market. “The Croatian industry has been actively involved in combating illegal gambling for more than fifteen years and has made significant strides in digital enforcement over the past seven years,” he explained. “By collaborating with regulators, financial institutions, payment service providers, and international partners, we have made important progress, but the challenge is ever-evolving.”
Jelavić remarked that the black market in the Balkans is increasingly sophisticated, saying, “Through influencers, affiliate networks, social media channels, and other digital means, unlicensed operators attract players to platforms beyond the reach of regulatory frameworks, offering minimal or no consumer protections.”
The BGF intends to share resources and information across borders to effectively challenge the black market.
“A genuine partnership” is another goal of the federation, according to Lalević. While dialogue between politicians and trade associations is ongoing, he believes these discussions often lack depth. “Consultations are happening, yet we still do not see enough tangible progress toward achieving a sustainable balance between the state’s legitimate interests and the capacity of licensed operators to conduct business competitively,” he explained.
The federation aims to unify its voice to facilitate change. Lalević added, “Licensed operators should not be seen purely as taxpayers—despite being significant contributors to public finances—but as strategic partners in advancing responsible gambling, consumer protection, anti-money laundering practices, and regulatory goals.” He emphasized that successful public policy hinges on a strong relationship between regulators and compliant operators.
With such developments in Balkan gaming, the federation’s inaugural year promises to be active. Plans are underway for improved collaboration with EUROMAT to address illegal gambling and protect legal operators. In September, European and Balkan associations will convene in Bucharest to set shared goals and enhance industry coordination.
As the federation prepares to announce its first president in November, it will also host the first Balkan gaming awards to celebrate local talent. This initiative signals the industry’s commitment to unity and highlights its shared interests.
Regarding the federation’s aspirations for its first year, Jelavić expressed his desire for it to establish itself as a credible regional voice and an influential participant in discussions with governments, regulators, and European bodies. “If, after the first year, the federation is recognized as a serious regional partner, actively engaged in combating illegal gambling and able to unite operators, suppliers, and industry stakeholders around common objectives, that would represent a successful start,” he stated.
Lalević, reflecting on the federation's potential, noted that success involves achieving practical results. As Montenegro works toward its EU accession in 2028, it will need to align regulatory frameworks with anti-money laundering and data protection laws. Collaboration between politicians and industry experts will be essential to navigate the implications of emerging technologies like artificial intelligence on safer gambling practices.
The federation’s success will largely depend on its ability to convert regional cooperation into real influence with regulators. The upcoming roundtable and collaboration with EUROMAT will serve as a critical initial test of this unity.
“Ultimately, greater institutional coordination is not an end in itself,” Lalević remarked. “It serves to create more effective regulations, improved consumer protection, a better fight against illegal gambling, and a healthier, more sustainable gaming sector throughout both the Balkans and Europe.”
