(Podgorica, 7 November 2011) – The clumsy press release issued by the Association of Organizers of Games of Chance (AOGC) is an attempt to protect their interests, to provide for the continuation of existing and to acquire new privileges for earning extra-profits through gambling.
Not once does their response address the substantive claims made by MANS, using instead demagogic statements to draw attention away from the significant problems identified in the draft Amendment to the Law on Games of Chance. At no point in its letter does the AOGC attempt to present counter-arguments to MANS’ claims. Instead they feign being upset with the amendments to the draft themselves (which include monopolistic provisions and much lower taxes).
The Ministry of Finance’s new draft proposal includes monopoly provisions that directly favor companies tied to controversial businessman Branislav Mićunović, including lower taxes on casinos, betting and slot clubs. The amendments also translate into lower revenues for the stat budget, especially in comparison to neighboring states. Many casinos in the region pay taxes on extra profits, which still isn’t the case in Montenegro. Furthermore online and mobile gambling is insufficiently regulated under this law, nor has the state considered options for generating revenues on this basis. All of this indicates that the law is tailored to suit the interests of the gambling lobby, while the burden of the economic crisis is shouldered by the citizens.
Moreover, following pressures exerted by the gambling lobby, the Draft Law also allows organizers of games of chance to police themselves (enabling the freedom to deceive citizens by not placing winning cards into circulation).
The amendments are also problematic for eliminating provisions that would require casinos to keep track of transactions over 15,000 euros (aimed at combating money laundering). It is well known that the gambling sector is particularly problematic when it comes to money laundering and that the majority of casinos in Montenegro are owned by “controversial” businessmen (Branislav Mićunović, the late Dragan ‘Fritz’ Dudić, Zoran Ćoćo Bećirović).
It is widely known that Montenegro has showed little progress in the fight against money laundering and that other governments are demanding concrete action by the state. Passing amendments that fail to stimulate the disclosure of transactions potentially related to money laundering would clearly demonstrate the unwillingness of the executive authority to make progress in this realm.
For these reasons we call upon the Ministry of Finance to: amend the current Draft Law; prescribe mechanisms to prevent money laundering through gambling; and to secure more budgetary revenues from games of chance. This should be done to ensure that the burden of the economic crisis is not only born by citizens but also by controversial businessmen who continue to earn extra-profits.
