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The government of Edi Rama, Prime Minister in Albania, has proposed legislation to lift the partial five-year ban on gambling and sports betting.
In 2018, the Balkan nation of about 2.8 million people banned all gambling that was not available in state-approved casinos. However, they now want to reverse this decision as it is believed that the prohibition failed to achieve its stated goal of reducing organized criminality.
The draft legislation drafted by the Ministry of Finance and Economy of Albania would aim to create a regulated market for online gambling, with strict anti-money laundering and compliance directives. The language of the measure would mandate that iGaming companies accept only digital payments made via ‘authorized agent’, such as Western Union, or licensed banks and financial institutions based in Albania. They would also be required to hold punters’ data for a period of at least three years.
The Ministry of Finance and Economy has issued a measure that would require iGaming firms to accept only wagers made by registered players. They are also required to guarantee any winnings and maintain a minimum of EUR1.5m in a designated bank account. This amount should ‘never fall below 5% of the total deposits made by the players during the previous financial period’.
A further provision in the draft legislation will require all licensed iGaming providers to register at Albania’s National Business Centre. This process is designed to include a detailed examination of all shareholders and management interests, so that those who have criminal convictions or are facing serious prosecutions can be excluded.
A special fund will be created to support sports, culture and welfare initiatives. This fund will be financed through a corporate income tax of 15% on iGaming operators. State institutions will be able to bid for a portion of the money to supplement any existing funding.
The draft legislation would require casino operators in the land-based sector to pay corporate income tax of 15% and to commit to depositing 0.4 percent of their annual revenue into this fund. The draft legislation also suggests that the national lotteries should donate 5.4% of their annual revenue to this strange repository.
Albania had more than 4,700 gaming shops before the partial ban was implemented in 2018. In the years since, local law enforcement agencies have conducted a number operations to crackdown on illegal wagering. The proposed legislation will not limit the number of gambling licenses or accounts available.
The Rama government stated that the “strict requirements” set out in the law would aim to ‘promote responsibly gambling while discouraging illegal betting activities’, and create a new revenue stream for many state-backed programs.
