New Government Law on Games of Chance Will Destroy Domestic Betting Shops in FBiH and Endanger 5,000 Workers

The Law on Games of Chance will not be on the agenda of the session of the House of Representatives in the Parliament of FBiH, scheduled for Wednesday. At least that is what is stated in the announcement on the official website of the Federal Parliament, Patria reports.

Deputies should discuss this law at the next session, which will be held by the end of July.
Whenever it happens, experts warn, if the law as proposed by the Government of FBiH is adopted, it will mean that domestic sports betting shops will be placed in an unfavorable position compared to foreign ones operating in the territory of FBiH. The absurd law, as domestic bookmakers call it, was passed in the Government of FBiH by the ministers from SDA and SBB outvoting the ministers from HDZ.

Specifically, if the Government's Law on Games of Chance is also adopted in the Parliament of FBiH, the machines of the Austrian company „Novomatic AG“, which are placed in the branches of Lutrija BiH, will jeopardize the operations of more than 2,550 domestic sports betting shops in FBiH, which employ about 5,000 workers.

Domestic bookmakers accuse that the secretary of SDA, Amir Zukić, is lobbying for the Austrian company Novomatic AG in the Parliament of FBiH. HDZ BiH has sided with the domestic bookmakers. Both sides are using their influence in the Government and Parliament of FBiH. And they insist that their proposal is better for the citizens.

Nevertheless, more facts are on the side of domestic betting shops. FBiH derives some benefit from them. The Federation owes them millions of KM, but they still pay around 70 million KM in taxes to the budget annually. They also employ about 5,000 workers.
On the other hand, citizens derive almost no benefit from Novomatic's machines in Lutrija BiH. Or it is negligible compared to the money that the Austrian company extracts from FBiH.

Patria's interlocutors from the Government of FBiH explain that the essence of the whole story is that, according to the proposed Law on Games of Chance, domestic betting shops should pay a monthly fee of 10 percent on the total amount of money players deposit with them in that month. Players who win money in domestic betting shops will also be taxed at ten percent.

The machines of the company Novomatic AG, of which there are more than 1,500 in Lutrija BiH, will not pay such a high tax. Nor will their players pay tax on winnings. This means that if the Government's law on games of chance, for which Zukić from SDA and SBB is lobbying, is adopted, it will be more profitable for players to play on Novomatic's machines in Lutrija BiH. More profitable than in domestic betting shops, because their tax on winnings is significantly lower.

- Everyone wants to pay less tax, it is clear that our players will leave – warn bookmakers from FBiH.

Novomatic AG is an Austrian company that enters all countries using the same principle. They seek high-ranking politicians who will craft laws to destroy domestic betting shops and redirect players to their machines. Before BiH, they tried to enter Serbia in the same way, but so far they have not succeeded. Their idea has long since succeeded in Croatia. They have taken over Lutrija Hrvatske.

Journalist from Jutarnji list, Tomislav Kukec, who followed Novomatic's operations in Croatia for years, says in an interview with the news agency Patria that the lobby of the Austrian company is too strong, and that after years of warning about the destruction of Croatian bookmakers by Novomatic, he only earned lawsuits in court.