Prior to the 1990s, the betting industry in Slovenia was very restrictive and only few betting activities were carried out here. As a general rule, up until this decade, the industry was mainly represented by betting agencies that were related to betting on sports results, more exactly, on football, which was a very popular sport in this country.
Those who want to open a company in Slovenia that operates as a betting agency should know that the industry developed after the 1990s, when the first casinos appeared on the local market. Over the years, the legislation regulating the betting activities developed here was modified several times; our team of consultants in company registration in Slovenia can assist with information on the current legislation in the field and can also represent investors in starting a local betting agency.
What is the legal framework on betting activities in Slovenia?
Gambling, betting activities and other related operations represent an important contributor to the country’s gross domestic product. The main rule of law addressing to this sector is the Slovenian Gaming Act, which was introduced on the local market in 1995, to regulate the industry, which was rapidly expanding at that moment.
Under this act, the local authorities named the State Office for Gaming Supervision as the main institution to regulate this sector and to provide licenses to betting agencies and other similar gambling operators. The institution operates under the supervision of the Ministry of Finance in Slovenia.
Statistics on gambling and betting in Slovenia
Gambling and betting activities are very popular in Slovenia and in the last decades, the local consumers have also opted to bet online, as numerous websites are available, even though the online betting sector remains widely unregulated. Recently, the local authorities proposed a bill amending the legislation on gambling and betting, but the bill did not pass the thresholds of votes in the country’s National Assembly. Investors opening a company in Slovenia must know that the industry is represented by the following:
- • the country has the highest percentage of casinos per 1,000 inhabitants in Europe;
- • the legal age to perform betting and gambling activities in Slovenia is of 18 years;
- • the winnings from lotteries, betting and other gambling games are charged with a tax of 15%;
- • the tax is applicable for any prize that has a value above EUR 300;
- • in 2017, the casinos operating in Slovenia generated a revenue of EUR 167 million;
- • the average spending per user/per year for games of chance is of EUR 53 (casinos are not included).
What is the legal framework for online betting activities in Slovenia?
It is necessary to know that the online sector is still unregulated here; however, companies in Slovenia involved in this industry can enter the online sector only as long as they own specific types of licenses. Thus, online betting and gambling activities can be performed by those who were issued with a classic games license (gaming activities other than those provided by casinos) and casino licenses; our team of consultants in company formation in Slovenia can offer in-depth information on the licensing requirements applicable here.
What are the requirements for a gambling license in Slovenia?
In order to obtain a gambling license as a private entity it is first necessary to start the procedure of company formation in Slovenia and to register it as a limited liability company. The issuance of the license is bound by complying with specific rules of law, and the most important is that the private company is legally required to enter a concession agreement with the local authorities.
This means that the local authorities will participate in the ownership of the company, this being a compulsory requirement for this business activity, which is rather restrictive in this country. In order to receive a license, the company must prepare a business plan for 3 financial years and provide information on its internal control rules.
Here, investors must also obtain the approval of the neighboring communities, which must consent with the registration of a gambling business in their area. Such businesses are also required to provide information on the gambling equipment that will be used once they will start operating in a given Slovenian region.
It must also present the rules of each game and provide details on the company’s owners, these being only a part of the requirements. The company must have a minimum share capital of EUR 416,000; further information on other important matters can be presented by our team of consultants in company registration in Slovenia.