Games of chance represent a significant segment of the entertainment industry and economy in Bosnia and Herzegovina (BIH). They encompass a wide range of activities, from lottery and sports betting to electronic casinos and online games. The organization, supervision, as well as taxation of these games are regulated by laws at the entity and cantonal levels.
Hereby, we will analyze the legal framework, the institutions responsible for regulation, the types of games that are permitted, the licensing procedures, as well as the challenges faced by this industry in Bosnia and Herzegovina.
- Legal Framework
Bosnia and Herzegovina is composed of two entities – the Federation of BiH and the Republic of Srpska, as well as the Brčko District, which has a special status. Each of these administrative units have their own legislation regarding games of chance.
- Republic of Srpska
In the Republic of Srpska, the organization of games of chance is regulated by the Law on Games of Chance of the RS, which prescribes strict rules for all types of games, including traditional and electronic games. The competent authority in the Republic of Srpska is the Republic Administration for Games of Chance, which operates under the Ministry of Finance of the Republic of Srpska. This administration issues licenses, monitors business operations, collects fees, and implements player protection measures.
- Federation of Bosnia and Herzegovina
In the Federation of BiH, the regulation of games of chance is decentralized. The key law at the entity level is the Law on Games of Chance of the Federation of BiH, but the implementation and supervision of games of chance are often delegated to cantonal tax administrations, depending on the type of game. The Federal Ministry of Finance and the Tax Administration of the Federation of BiH are the key institutions responsible for supervising organizers, issuing permits, and controlling the collection of taxes and fees.
- Brčko District
The Brčko District of BiH has its own regulation – the Law on Games of Chance of the Brčko District of BiH. The Department of Finance of the Government of the Brčko District is responsible for the organization and supervision of games of chance in this part of BiH.
2. Types of Games of Chance
The laws in BiH recognize several basic types of games of chance:
- Traditional games – lottery, tombola, bingo, etc.
- Sports betting – betting on the outcomes of sporting events
- Casino games – slot machines, roulette, poker, etc.
- Electronic games – slot machine clubs, betting terminals
- Online games – all the above-mentioned games offered via the internet
2.1. Lottery
In the Federation of BiH and the Republic of Srpska, there are state lotteries – “Lutrija BiH” and “Lutrija RS” – which have exclusive rights to organize certain games, such as lotto and traditional lottery games.
2.2. Sports Betting and Betting Shops
Sports betting is one of the most popular types of chance games in BiH. In the Federation of BiH, dozens of companies operate in this sector, including online betting operators. In the Republic of Srpska, the regulations and licensing procedures are stricter.
2.3. Casinos and Slot Machine Clubs
Casinos are allowed, but opening one requires meeting numerous conditions, including a minimum hotel star rating (e.g., five stars) for the facility in which the casino is located. Slot machine clubs are permitted with special licenses and in accordance with urban planning regulations.
2.4. Online Games
Online games are a relatively new category that is gaining importance in this region. They are permitted, but organizers must meet strict technical, security, and tax requirements, including geolocation protection to prevent illegal participation from other jurisdictions.
3. Licensing and Supervision
3.1. Who Can Obtain a License?
A license to organize games of chance may be granted to legal entities registered in Bosnia and Herzegovina that meet requirements related to capital, technical equipment, security, and business reliability.
3.2. Licensing Process
The process includes:
• Submitting an application to the competent authority;
• Paying the initial and annual fees;
• Presenting financial guarantees;
• Providing proof of technical equipment and software security;
• Connecting to the supervision system (online reporting).
3.3. Inspection and Sanctions
Competent institutions have the authority to:
• Conduct inspections (physical and electronic);
• Impose temporary or permanent bans on operations;
• Issue monetary fines;
• Revoke licenses.
4. Taxes and Contributions
Organizers of games of chance are required to pay:
• Special fees (per location, device, or terminal);
• Corporate income tax (or revenue tax, depending on the entity); and
• Contributions for socially beneficial purposes (sports, culture, healthcare).
In both the Federation of BiH and the Republic of Srpska, tax rates and collection models vary, but both entities aim to enhance control and improve the efficiency of tax collection.
Conclusion
The organization of games of chance in Bosnia and Herzegovina is a complex and extensive system that requires continuous alignment of legislation with international standards and technological advancements. While the industry is highly profitable and contributes to public revenues, it is essential to strengthen oversight, combat illegal practices, and protect citizens – especially young people – from the negative consequences of excessive gambling.
The future of the games of chance industry in BiH will depend on political will, regulatory discipline, and the ability of the state to establish a balance between economic benefits and social responsibility.
Author: Aleksandar Sajic
E-mail: aleksandar@afsajic.com
