Balkan Gaming Federation Unites Operators Against Black Market and Restrictive Regulation

In a concerted effort to address mounting challenges from both illegal gambling operations and increasing regulatory pressures, gambling industry trade bodies across Southeastern Europe have formed the Balkan Gaming Federation (BGF). Established in March, this new alliance brings together associations representing operators and suppliers from seven nations: Serbia, Bulgaria, Croatia, Romania, Montenegro, Bosnia and Herzegovina, and North Macedonia. The BGF aims to champion proportionate regulation, enhance dialogue with governmental bodies, and intensify the battle against the region's illicit gambling market.

Legal gambling operators in the Balkans report feeling constrained by escalating costs and burdensome regulations, while illicit operators expand their reach and find new methods to attract customers. The BGF’s founders contend that confronting the unregulated market and fostering balanced regulatory frameworks are intrinsically linked.

The federation’s initial steps include registering its headquarters in Croatia and preparing for the election of its first president this autumn. A key initiative involves organizing a significant roundtable event, designed to bring together regulators, industry leaders, independent experts, and government representatives from the Balkans. This forum seeks to cultivate a collaborative environment for discussing crucial topics like regulation and the black market, moving away from confrontational dynamics.

Miloš Lalević, Vice President of GPIS Montenegro, highlighted the crucial role of legal operators: “Licensed operators should not be viewed as part of the problem – they should be recognised as part of the solution.” He emphasized that compliant entities make substantial investments in responsible gambling initiatives, consumer protection, technological innovation, and anti-money laundering systems. Lalević asserted that effective combat against illegal gambling necessitates robust and competitive regulated markets.

Historically, the Balkan gaming sector, once seen as an accessible entry point into European markets, has recently faced a wave of stringent regulatory changes and rising operational expenses. Lalević suggested that operators have often been targets of “outdated perceptions” and that regulators frequently overlook the industry’s economic contributions. For instance, Romania’s land-based slots sector is experiencing a downturn due to new local authorization mandates, following tax increases and a prohibition on slot machines in smaller towns. Bulgaria has also implemented bans on gambling in minor urban areas, alongside a near-total advertising prohibition and an expanded self-exclusion program. Croatia, the BGF’s base, is undergoing its own regulatory overhaul, introducing strict rules on advertising, player identification, and self-exclusion, coupled with significant tax and licensing fee hikes.

Lalević expressed concern that regulatory authorities often underestimate the practical implications of certain measures. He noted, “When regulation becomes excessively restrictive, the outcome is often the opposite of what policymakers intend.” Players, he explained, do not cease gambling but instead migrate to unlicensed platforms that operate beyond the purview of national regulators, tax authorities, and consumer protection safeguards. This trend, he added, has fueled the expansion of the black market, making it a primary challenge for the industry.

Evidence suggests the illegal market is thriving in the region. Data from Gaming Compliance International (GCI) indicated that online gaming channelization in the Balkans (excluding Bosnia and North Macedonia) stood at a mere 11% in 2025, implying that 89% of the market was illicit. Filip Jelavić, Secretary General of the Croatian gaming association HUPIS, described the black market in the Balkans as increasingly sophisticated and well-organized, leveraging influencers, affiliate networks, and social media to attract players to platforms lacking consumer protections. The BGF aims to counter this by facilitating cross-border information and tool sharing.

Beyond uniting regional nations, the federation aspires to forge a genuine partnership between public authorities and the industry. Lalević acknowledged that while dialogue exists, it is often more formal than productive. He stated that meaningful progress is needed to establish a sustainable balance between state interests and the ability of licensed operators to offer viable and competitive services. He stressed that operators are significant contributors to public budgets and strategic partners in promoting responsible gambling, consumer protection, anti-money laundering, and broader regulatory objectives, emphasizing that successful public policy hinges on a strong partnership between regulators and compliant operators.

The BGF’s inaugural year promises to be active, with plans for closer coordination with EUROMAT on combating illegal gambling and protecting legal operators, including a joint meeting in Bucharest in September. November will see the announcement of the federation’s president and the first Balkan gaming awards, celebrating regional talent. Jelavić hopes the federation will establish itself as a credible regional voice and a relevant stakeholder in discussions with governments, regulators, and European institutions, becoming a serious partner actively engaged in fighting illegal gambling and uniting industry stakeholders around shared goals. Looking ahead, Lalević pointed to Montenegro’s EU accession goal by 2028, requiring regulatory alignment on AML and data protection, alongside the need for combined expertise to understand emerging technologies like AI for safer gambling. He concluded that stronger institutional coordination is a means to achieve more effective regulation, enhanced consumer protection, a more successful fight against illegal gambling, and a healthier, more sustainable gaming sector across both the Balkans and wider Europe.