LAW OF THE GAMES OF CHANCES
1. BASIC PROVISIONS
Article 1
The Law shall define the system and conditions of organizing of games of chance and competitions for prizes in goods and services.
This Law shall not apply to the contracts on the games of chance concluded between the citizens.
Article 2
Pursuant to this Law, games of chance shall be the games where a player, apart from amusement and play, may gain money, goods, services or rights, whereas the outcome of such game does not depend solely or mostly (in most cases) on the player’s knowledge or skill, but on chance or an uncertain event.
Pursuant to this Law, prize contest shall be the game organized for the purpose of promoting products and services providing that no special payment is required for participating the contest.
Article 3
The games of chance shall be divided into two groups:
1. Lottery games of chance
- Lottery,
- Express and instant lottery
- Bingo
- TV tombola and tombola organized in premises,
- Lotto,
- Keno,
- Sport spools,
- Toto,
- Similar games based on lotto and toto,
- Video lottery,
- Fonto,
- Other similar games of chance based on drawings.
2. Special games of chance:
- Games organized in casinos
- Games organized in betting places,
- Games played on slot machines.
Article 4
Certain expression in this Law shall have the following meaning:
1. Lottery games of chances shall be the games organized by public drawings and those with previously defined winning fund.
2. Lottery shall be the game in which a player holds a lottery ticket, issued by the game operator, which, in line with the rules of the game, has a previously printed number. The lottery ticket is a winning one if part of the number or the entire number appearing on the lottery ticket is drawn in a public lottery draw held at a previously set date.
3. Express lottery shall be a game in which a player has a lottery ticket issued by the game operator, which, in line with the rules of the game, has previously printed type and amount of prize or a certain number, which are protected by a protective screen. The lottery ticket shall be the winning one if it bears the prize, symbol or a number, which, in line with the rules of the game, was determined as a winning one.
4. Instant lottery shall be a game in which a player takes part by holding an instant lottery ticket, issued by the game operator, which, in line with the rules of the game, has previously printed type and value of the prize, or a certain number or a symbol, protected by a protective wrapping or covered by a protective screen, which the player removes by opening the wrapping or scratching off the protective screen. The instant lottery ticket is a winning one if it shows the prize or the number or the symbol previously designated as the winning one, in line with the rules of the game.
5. Toto and sports pool shall be a game in which a player takes part by filling in a ticket, issued by the game operator, with previously printed opponents in matches and guesses the results of the matches on the ticket for each pair using symbols defined by the rules of the game. The ticket is a winning one if the player guessed well all the results or as many results as required by the rules of the game, and if the symbols have been properly filled in or the required result symbols crossed on the ticket and if other conditions set by the rules of the game have been met.
6. Loto, keno and similar games shall be the games in which a player takes part by filling in a ticket, issued by the game operator, with previously printed numbers, in line with the rules of the game, with the intention to guess a certain group of numbers, crossing them at his own choice. The ticket is a winning one if all the numbers or some of the numbers crossed on the ticket match the numbers drawn in a public draw and if other conditions set by the rules of the game have been met.
7. Bingo and TV tombola shall be the games in which the numbers are drawn in a public draw broadcasted by TV, held at the previously set date, at the previously set time, in line with the rules of the game.
8. Tombola organized in premises shall be the games of chance in which the participant has the tombola card with previously printed numbers, in line with the rules of the game. The player shall win a prize if the numbers printed on the card have been drawn in a draw, which cannot be broadcasted.
9. Video Lottery shall be a game played at video lottery terminals, where the terminals have been linked into an electronically controlled network, within which the players may lay stakes at various games and jackpot games, in line with the rules of the game, having a possibility of multiple stakes and winnings. Whenever the player lays a stake in a jackpot game, a certain percentage of his stake goes into the jackpot prize fund. The rules of the game define the conditions for winning a jackpot.
10. Fonto and similar games shall be the games played over the telephone, Internet and similar media, where a player is given a certain number or other unique symbol, or he chooses one himself, at his telephone call and after meeting other conditions, as set by the rules of the game. The player shall win a prize if the given number is drawn in a public draw, in line with the rules of the game.
11. Special games of chances shall be the games where a player contests the operator or another player and expects a prize depending on the money paid and the rules of the game.
12. Games organized in casinos shall be the games where the players play against the gaming-house or one against the other at gaming-tables using:
- Small balls (roulette, boulle and alike);
- Dice (craps and alike);
- Cards (baccarat, trente-quarante, black jack, punto banco, mini punto banco, shemin de fer, carribien poker and alike);
13. Betting games shall be the games where the players, in compliance with the rules of the game, place bets on sports and other events:
- Betting on results of single or group sports events,
- Betting on results of dancing, singing, music and similar events.
- Other betting.
14. Games of chance on slot machines shall be the games organized on automatic machines and other machines with multiple stakes and winnings (multiplayer).
15. Automatic machines with multiple stakes and winnings (multiplayer) shall be mechanical, electronic and similar devices on which the players by payment of a certain amount (dice, coins and direct payment on the window, i.e. on the machine) have the possibility of winning.
Article 5
The Republic of Montenegro (hereinafter: the Republic) shall have the exclusive right of regulating and organizing the games of chances.
Organizing of games of chances on the territory of the Republic shall be the activity of public interest and particularly for the following purposes:
- Provision of funds for social-humanitarian activities, protection of mental health, program activities of the youth and other purposes provided hereby,
- Harmonization of games of chances with social economic and other circumstances,
- Protection from risks of criminal, fraud and other adverse impacts pertaining to the games of chance.
The Republic may transfer the right of organizing games of chance to legal entities and other entities (hereinafter: the operators).
Article 6
The winnings of the games of chance shall be in money, goods, services or rights.
The operator of games of chance shall guarantee the payment of winnings.
The Republic shall not guarantee the payment of winnings.
Article 7
It shall be prohibited to:
1. Participate in games of chance organized abroad for which stakes are paid in the territory of the Republic;
2. Collect stakes in the territory of the Republic the games of chance organized abroad;
3. Sell, concede, issue, advertise or represent in any other way in the territory of the Republic foreign lottery tickets and tickets for the games of chance organized abroad;
4. Organize games of chance in duty-free zones;
As an exception to paragraph 1, item 3 of this Article, holding foreign lottery tickets and tickets for the games of chance organized abroad shall be allowed provided the holder of such tickets is personally participating in the game and has paid the stakes abroad.
Article 8
It is forbidden to organize the games or activities where the participants pay certain amounts to the participants who have previously joined the game or activity and expect the payment of certain amounts from the participant who joined the game after them in such a game or activity (money chain, etc.).
Article 9
Operating Internet gaming or other telecommunication devices shall only be allowed to companies licensed for operating games of chance.
Companies for paragraph 1 of this article shall connect their IT system for internet gaming to the IT system of State administration authority competent for games of chance (hereinafter: competent authority) and provide it with access to data and system notes at any time.
The Minister of Finance shall provide detailed regulations of games, supervision, scope of operating of Internet gaming and other telecommunication devices.
II CONDITIONS OF ORGANIZING
GAMES OF CHANCE
Article 10
Legal entities (joint stock company and Limited liability company) with their head office on the territory of the Republic shall have the right to organize special games of chances on the basis of the license in compliance with the conditions stipulated herein.
The Government of the Republic of Montenegro (hereinafter: the Government), the Minister of Finance shall decide upon the number of licenses that may be granted to the operators of games of chances in casinos, considering the following:
1) Games of chance market in the Republic, or in particular local community and balance of it in relation to games of chance in neighboring countries
2) Enabling harmonized, optimal and continual development of the industry;
3) Impact on social, cultural and economic environment and individuals;
4) Volume of organizing of games of chance as part of tourist offer;
5) Experience and references in organizing games of chance and number of licenses granted;
6) Performance, operations, background and financial standing of a legal entity;
7) Meeting tax obligations and obligations related to paying license fees and other public obligations;
8) Suitability and quality of investments for granting a license;
9) Other circumstances related to the license approval.
The concession for organizing lottery games, excluding bingo, TV tombola, and tombola organized in premises, may be granted to only one concessionaire, organized as a shareholding company.
Article 11
The Government shall grant the licenses for organizing games of chances in casinos to legal entities participating at the public tender announced in daily newspapers available at the whole territory of the Republic.
The tender for granting licenses form the paragraph 1 of this Article, shall be announced and organized by the Competent authority.
The tender for guarantying licenses for organizing games of chance shall contain in particular:
- Type of the game
- License duration
- Terms and conditions the bidder has to fulfill
- Contents of documentation for the submission of bids and
- Criteria for assessment of bids and other data depending on the type of game.
The decision to grant a license from the paragraph 1 of this Article, after the implemented procedure shall be made by the Government of the republic of Montenegro (hereinafter to as: the Government), in line with the proposal of the competent authority after the implemented.
On the decision from paragraph 4 of this Article, Competent authority shall sing the license agreement.
The license shall not be transferable.
The license from Article 1 of this Article shall be granted for the period of maximum 10 years.
The Competent authority may, at the request of the concessionaire, extend the license for the period of following five years with the approval of the Competent authority.
The concessionaire shall be obliged to submit the request from paragraph 8 of this Article to the Competent authority not later than three months before the expiry of license.
The license agreement may be cancelled with three months prior notice.
In case the concessionaire cancels the license contract due to losses in its business activities, the cancellation period shall be 30 days.
In order to be granted a license from paragraph 1 of this Article, a legal entity shall have to meet, apart from the conditions prescribed hereby, the conditions defined by the Competent authority.
Article 12
The Competent authority shall grant the licenses for organizing games of chances in slot machine clubs, for organizing betting and TV tombola and tombola organized in premises. .
The license from paragraph 1 of this Article shall be granted on the basis of special request submitted to the Competent authority for the period of three years.
The license from paragraph 1 of this Article shall not be transferable.