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Albania, already the source of many dramatic shifts in gambling regulation, has recently taken further significant steps to reintroduce sports betting within a controlled and regulated environment. On 15 February 2024, the Albanian Parliament adopted Law No. 18/2024, amending the previous gambling legislation and overturning a five-year ban on sports betting activities.
This new legislation came into effect on March 27, 2024, and is considered a shift in how Albania has so far perceived gambling.
This article was written on September 10, 2024, and is based on information available on that date. Because regulations by nature are subject to change, one should consult with local experts for the most current information available pertaining to Albanian gambling laws.
The resurfacing of online sports betting
The new law allows online sports betting only. Under the amended Gambling Law, 10 licenses for online sports betting were to be issued by the Albanian Gaming Authority. In this respect, these licenses were to be granted via a competitive process. This competitive process shall be detailed in the expected regulations.
Licensing requirements and fees
Those eligible to seek such online sports betting licenses should ensure that the following major provisions are duly met:
- Legal Status: Applicants shall be established as a joint-stock company in Albania, with at least 40 million ALL share capital (approximately EUR 400,000).
- Experience: An applicant shall have at least three years of gambling experience in at least three EU or OECD countries, either directly or through a major shareholder owning at least 30% of his company.
- The minimum turnover obtained from gambling games in the previous financial year amounts to 2 billion ALL (approx. EUR 19.8 million).
- Guarantees: The operators have to provide guarantees for the payment of winnings at an amount of 120 million ALL, approx. EUR 1.2 million, and for compliance with periodic obligations at an amount of 50 million ALL, approx. EUR 0.5 million.
The license fee is fixed at no less than 400.000.000 ALL (approximately 3.9 million EUR), payable in equal pro-rata instalments throughout the license term, ensuring that only well-capitalised and experienced entities enter the market.
Regulating structure and control
The Gaming Authority is to be responsible for ensuring the online sports betting market complies with all regulations. According to the new law, any payments about bets are reserved through and within the licensed financial agents, which also include banks and e-currency institutions. No cash transactions are allowed.
The political and social context
The lifting of the ban on sports betting comes after five years, dating from 2018. It was part of a broader campaign against gambling, which is associated with organised crime and addiction. The previous administration of Prime Minister Edi Rama imposed the ban as an effort against those issues; the government, however, was roundly criticised due to a failure in eradicating illegal gambling.
In September 2022, Prime Minister Rama spoke of revisiting the ban due to the resilience of illegal online gambling and its ties with criminal elements. The new law reflects a shift in policy toward regulation and control in sports betting through a legal framework while addressing the shortcomings of the previous ban.
Legislative debate and public reaction
Passage of law number 18/2024 did not happen without its controversies. The lifting of the ban to permit online sports betting received serious opposition from all corners. According to critics, the reintroduction of betting on sports may bring in more significant social problems related to gambling addiction and organised crime. Some opposition MPs and activists have said that the new law amounts to backtracking on the achievements made so far by the previous ban.
However, the government has argued in defence of the new law as a necessary step towards regulating an industry that had otherwise continued to operate extrajudicially. In this way, the activity will be brought into a controlled environment where it can be monitored and taxed, hence bringing in extra revenue towards public projects.
Future of gambling regulation in Albania
The reinstatement of sports betting has transformed the entire aspect of gambling legislation in Albania, now targeted at how to make the online sports betting market responsible and transparent. In this respect, the new law sets a strong emphasis on strict criteria that are related to issuing licenses and the need for financial guarantees as a means of ensuring security and regulation in the environment.
The effectiveness of this new regulatory framework will depend upon implementation of the competitive licensing process and enforcement of anti-money laundering and player protection measures. Further revisions by the Albanian government will likely continue to be forthcoming as that government strives to balance significant potential economic benefits with social responsibility.
Where to seek expert advice
Moreover, local lawyers, such as the law firm Boga & Associates and other affiliated legal counsellors in Tirana, can be consulted about new rules and regulations on gambling in Albania for further advice.
In all, Albania’s new legislation on online sport betting marks a radical turn from the previous stance of the country in that it regulates and tries to tap into the economic potentials of sport betting to try to overcome concerns about criminality and social issues linked to the practice. As the market continues to develop, vigilance and the ability to adapt will be crucial in guaranteeing the efficacy of such regulation.
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