From EOGL to Wigemark and Inzko: React in the case of adoption of the Law on Games of Chance in FBiH

From the European Organization for the Regulation of Gambling (EOGL) they wrote to the Head of the EU Delegation and EU Special Representative in BiH, Lars-Gunnar Wigemark, and the High Representative in BiH Valentin Inzko, requesting their urgent reaction regarding the initiative to amend the Law on Games of Chance in the Federation of BiH, Patria reports.

- We have been monitoring the initiative to amend the Law on Games of Chance in FBiH from the very beginning and emphasize that there is a great danger that it involves a serious disruption of fair market competition, a violation of the provisions of the FBiH Constitution, as well as a violation of the European Convention for the Protection of Human Rights and Fundamental Freedoms, and actions contrary to the legal acquis of the European Union, which accepted BiH's membership application on 20.09.2016 - states the beginning of the letter sent by EOGL to Wigemark and Inzko.

From EOGL, they point out that it is strange that an initiative to amend the Law on Games of Chance appeared, even though it was not foreseen either by the Reform Agenda (2014-2018) or the Work Plan of the FBiH Government for 2016. EOGL expresses concern that proposals coming from the FBiH Government deepen the unconstitutionality of the Law on Games of Chance, by treating certain organizers differently in the territory of FBiH, although the FBiH Constitution guarantees equality before the law to all legal and natural persons.

- It is indicative that the FBiH Government and the Federal Ministry of Finance have so far not wanted to include legal domestic organizers in the drafting of this legal solution, even though domestic legal regulations oblige them to do so. According to EOGL's information, the Draft Law on Games of Chance was prepared without a prior expert economic-financial analysis, and the FBiH Government rejects any arguments that criticize such a legal solution, emphasize in EOGL, confirming that they have written twice so far, in September 2016 and January 2017, to the FBiH Government and the Federal Ministry of Finance offering their assistance in harmonizing FBiH regulations with those of the European Union, but their helping hand was never accepted.

From EOGL, they convey to Wigemark and Inzko that neither the FBiH Government nor the Federal Ministry of Finance sent their representatives on 25.01.2017 to the international conference titled “Taxation in the European Gambling Industry”, thereby the FBiH Government and the Federal Ministry of Finance once again showed they are deaf to calls for cooperation.

That they are very well acquainted with the problems in FBiH in Brussels is confirmed by part of the letter in which EOGL informs Wigemark and Inzko about the issues of communal taxes.

- City and municipal authorities, by not respecting the FBiH Constitution and the rulings of the Constitutional Court, impose communal taxes on gambling organizers for displayed company names in amounts many times higher than for other activities within the same city zones, write from EOGL, pointing out that there are over 100 rulings of the Constitutional Court of FBiH that have declared such decisions unconstitutional. The example of the Decision on Communal Taxes in Zenica is also cited.

- City and municipal councils do not respect the FBiH Constitution, nor the rulings of the Constitutional Court. Thus, the Zenica City Council on 29.12.2016 adopted the Decision on Communal Taxes, by which the amounts of communal taxes on displayed company names for gambling organizers, based on the criterion of the type of activity, were increased from 3,000 KM to 50,000 KM annually per payment point, thereby literally making it impossible for domestic gambling organizers to operate in the area of the City of Zenica. It is particularly important to emphasize that the Constitutional Court of FBiH has already declared the Decision on Communal Taxes in Zenica unconstitutional three times, precisely because it used the type of activity the taxpayer performs as a criterion for determining the amount of communal taxes. Even after those rulings, the Zenica City Council again adopted a new Decision increasing the amounts of communal taxes for gambling organizers by an incredible 1,666.67%, while not changing the amount of communal taxes for other activities at all, which is further proof that this is discrimination based on the type of activity, states the EOGL letter.

At the end of the letter, EOGL expresses doubt that such processes in FBiH could completely destroy legal domestic gambling organizers and the legal market, and open the door wide to the black market, therefore EOGL calls on Wigemark and Inzko to react.

- We are sure that if you analyze in more detail all the claims we present in this letter, you would yourself be convinced that the authorities in FBiH are carrying out activities that are contrary to the legal acquis of the European Union, and therefore we call on you to react in accordance with the powers you have. Based on the views and facts of foreign and domestic experts presented at the mentioned conference, we are convinced that your reaction is urgently needed, because there is a real danger that fundamental human freedoms and the right to work may be threatened, and ultimately, more than 5,500 jobs and more than 180 million KM of FBiH budget revenues are directly threatened. We believe that the eventual loss of all the above could be a trigger for new social unrest and a path that would significantly distance BiH from the European Union – conclude from EOGL, Patria reports.