Gambling is regulated separately in each entity, with local licensing required for land-based and online operations. Only companies with land-based presence may operate online.
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Regulatory AuthorityEntity-level authorities: Tax Administration (Federation of Bosnia and Herzegovina), Republic Administration for Games of Chance (Republika Srpska), Tax Administration (Brčko District)
License CostVaries
Regulation by Activity Type
Casinos
Regulated
Online Casinos
Regulated
Betting
Regulated
Online Betting
Regulated
Lotteries
Regulated
Poker
Regulated
Highlights
Bosnia and Herzegovina has a highly fragmented regulatory system, with three separate entities each enforcing their own gambling laws.
The Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District each have distinct gambling legislation and regulators.
Online gambling is legal but licenses are only issued to operators with existing land-based operations in the same entity.
Land-based casinos and betting shops require local licenses; in Republika Srpska, casino concessions are awarded via public tender.
State lotteries are operated exclusively by government authorities within each entity; private lotteries are not permitted.
Gaming machines and software must be certified by authorized labs, but there is no separate supplier licensing regime.
All gambling-related financial transactions must be processed through local banks, particularly for online gaming in Republika Srpska.
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Legislation
Primary Legislation
Gambling in Bosnia and Herzegovina is governed by a complex legal framework due to the country’s unique administrative structure. The primary legislation is enacted separately within each of the three main jurisdictions:
Federation of Bosnia and Herzegovina (FBiH): The main law is the Law on Games of Chance (2015), which regulates all forms of gambling, including land-based and online activities.
Republika Srpska (RS): Gambling is regulated by the Act on Games of Chance (2019), covering both land-based and online gambling operations.
Brčko District (BD): The Law on Games of Chance (2022) governs gambling activities within this autonomous district.
Each entity operates under its own legislative framework, resulting in distinct regulations for gambling activities across the country. These laws collectively cover the regulation of casinos, betting, lotteries, gaming machines, and online gambling.
Regulatory Authority
Oversight and enforcement of gambling laws are carried out by separate regulatory bodies in each jurisdiction:
Federation of Bosnia and Herzegovina: The Tax Administration under the Ministry of Finance is responsible for regulating and supervising gambling activities.
Republika Srpska: The Republic Administration for Games of Chance, operating under the Ministry of Finance, oversees the sector.
Brčko District: The Tax Administration within the Directorate of Finance manages gambling regulation in the district.
These authorities are tasked with implementing the relevant laws, ensuring compliance, and supervising all forms of gambling within their respective territories.
License Types
Overview of Gambling Licensing in Bosnia and Herzegovina
Bosnia and Herzegovina has a uniquely complex gambling licensing system due to its administrative structure. The country is divided into three self-governing entities, each with its own regulatory authority and licensing procedures for gambling activities:
Federation of Bosnia and Herzegovina (FBiH)
Republika Srpska (RS)
Brčko District (BD)
Licensing requirements, types, and procedures differ in each entity, and operators must comply with local regulations to offer gambling services within each jurisdiction.
Types of Gambling Licenses
Land-Based Casino License: Available in all three entities. In Republika Srpska, casino concessions are granted via public tender.
Land-Based Betting License: Required for operating betting shops in all entities.
Online Gambling License: Available for online betting and casino games. Only companies with existing land-based operations are eligible to apply for online licenses.
Gaming Machines License: Required for operating gaming machines; regulated in all entities.
Lottery License: Lottery games are exclusively organized by state authorities in each entity; private operators cannot obtain lottery licenses.
Supplier Licensing: No dedicated supplier license exists, but all gaming software and machines must be certified by authorized laboratories.
Application Process and Eligibility
Each entity has its own regulatory body responsible for issuing licenses.
Applicants must be locally registered companies and, for online gambling, must also operate land-based establishments within the respective entity.
In Republika Srpska, casino licenses are awarded through a public tender process.
Operators must submit detailed business plans, proof of financial stability, and documentation on the origin of funds.
All gaming equipment and software must be certified by approved testing laboratories.
Applicants must demonstrate compliance with anti-money laundering (AML) and responsible gambling requirements.
License Duration, Renewal, and Maintenance
Licenses are typically issued for a fixed period (often 5 to 10 years, depending on the entity and license type), with the possibility of renewal upon meeting ongoing compliance requirements.
Renewal applications require updated documentation and continued compliance with regulatory standards.
License holders must regularly report operational and financial data to the relevant authority.
Failure to comply with regulatory requirements can result in suspension or revocation of the license.
Costs, Fees, and Financial Requirements
Application fees and annual licensing fees vary by entity and type of license. Fees are generally substantial, reflecting the scale of operations.
Operators must provide proof of sufficient capital and may be required to pay additional fees for certification of gaming equipment and software.
In some cases, operators may be required to provide financial guarantees or deposits as part of the licensing process.
Key Requirements for Obtaining and Maintaining a License
Local company registration and, for online licenses, operation of land-based gambling venues.
Submission of a comprehensive business plan and proof of financial resources.
Certification of all gaming equipment and software by authorized laboratories.
Strict adherence to AML, responsible gambling, and player protection measures.
Regular reporting to the regulatory authority and cooperation with audits and inspections.
Due to the fragmented regulatory landscape, operators seeking to offer gambling services across Bosnia and Herzegovina must navigate separate licensing regimes in each entity, ensuring full compliance with local requirements and procedures.
Gambling Tax
Taxation System for Gambling Operators in Bosnia and Herzegovina
Gambling taxation in Bosnia and Herzegovina is highly complex due to the country’s administrative structure. The system is divided among three autonomous jurisdictions: the Federation of Bosnia and Herzegovina (FBiH), Republika Srpska (RS), and the Brčko District (BD). Each entity has its own tax rates, bases, and procedures for gambling operators.
Tax Rates by Entity and Gambling Type
Entity
Gambling Type
Tax Base
Tax Rate
Federation of Bosnia and Herzegovina (FBiH)
Land-based casinos, betting, gaming machines
Gross Gaming Revenue (GGR)
Varies by type (generally 10%–15% of GGR)
Federation of Bosnia and Herzegovina (FBiH)
Online gambling
Gross Gaming Revenue (GGR)
Similar rates as land-based, typically 10%–15% of GGR
Republika Srpska (RS)
Land-based casinos, betting, gaming machines
Gross Gaming Revenue (GGR)
Typically 10%–15% of GGR
Republika Srpska (RS)
Online gambling
Gross Gaming Revenue (GGR)
Approximately 10%–15% of GGR
Brčko District (BD)
All gambling activities
Gross Gaming Revenue (GGR)
Rates set by local regulation, usually in the 10%–15% range
All Entities
State lottery
Turnover
State-run; special fiscal treatment
Basis for Taxation
Most gambling operations are taxed on Gross Gaming Revenue (GGR), which is defined as the difference between the amount wagered and the winnings paid out to players.
Some lottery activities may be taxed on turnover, but these are typically state-run and not open to private operators.
Tax Reporting and Payment Requirements
Operators must register with the relevant tax authority in their entity (FBiH, RS, or BD).
Tax returns must be submitted monthly, detailing GGR and the corresponding tax due.
Tax payments are generally due monthly, within a set number of days after the reporting period ends (commonly within 15 days).
All financial transactions related to gambling must be processed through local banks, ensuring traceability and compliance.
Operators are subject to audits and must maintain detailed records for a specified period (usually five years).
Tax Incentives, Exemptions, and Special Provisions
There are no broad tax incentives or exemptions for gambling operators in Bosnia and Herzegovina.
State lotteries enjoy special fiscal treatment and are generally exempt from standard gambling taxes, as they are operated directly by government authorities.
No reduced rates or holidays are currently offered for new market entrants or foreign investors.
All software and gaming equipment must be certified, but this does not affect tax obligations.
Tax rates and procedures may be updated by local authorities, so operators must monitor regulatory changes in each entity to ensure ongoing compliance.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participating in any form of gambling in Bosnia and Herzegovina is 18 years. Operators are required to verify the age of all players before granting access to gambling services.
Strict identification procedures are in place. Players must present valid identification documents (such as a national ID card or passport) when registering at land-based venues or creating online gambling accounts. This is to ensure compliance with age restrictions and to prevent underage gambling.
Operators are obliged to implement ongoing identity verification measures to detect and prevent the use of false or stolen identities.
Prohibited Gambling Activities and Game Restrictions
Certain gambling activities are strictly prohibited. Unlicensed gambling operations, including unauthorized online gambling platforms, are illegal and subject to enforcement actions.
Only state-owned entities are permitted to organize lottery games; private operators are not allowed to offer lottery products.
Online gambling is only permitted for operators that also hold land-based licenses, effectively prohibiting purely online-only gambling companies from operating legally in the market.
All gaming software and machines used in licensed operations must be certified by authorized laboratories to ensure fairness and compliance with technical standards.
Advertising and Marketing Limitations
Gambling advertising is subject to strict controls to prevent targeting minors and vulnerable groups. Advertising must not be directed at individuals under the age of 18 or portray gambling as a means of solving financial or personal problems.
Operators are prohibited from making misleading claims about winning probabilities or exaggerating the benefits of gambling.
Advertisements must include clear information about the risks of gambling and responsible gambling resources.
There are restrictions on the placement of gambling advertisements, particularly near schools, playgrounds, and other locations frequented by minors.
Responsible Gambling and Player Protection Measures
Operators are required to provide responsible gambling tools, including self-exclusion programs that allow players to voluntarily ban themselves from gambling activities for a specified period.
Information about the risks of gambling addiction and contact details for support organizations must be prominently displayed on operator websites and within land-based venues.
Limits on deposits, wagers, and losses must be available to players, enabling them to set personal boundaries and reduce the risk of excessive gambling.
Operators must monitor player behavior for signs of problem gambling and intervene when necessary, offering guidance and support to those at risk.
Geographic and Location Restrictions
Land-based gambling venues are subject to zoning regulations, which prohibit their establishment in close proximity to schools, religious institutions, and other sensitive locations.
Online gambling operations must base their servers and financial transactions within the territory of the respective entity (Federation of Bosnia and Herzegovina, Republika Srpska, or Brčko District) and comply with local regulatory requirements.
Each of the three administrative entities enforces its own geographic restrictions and licensing conditions, meaning operators must adhere to local rules depending on where their services are offered.
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Timeline
Year/Date
Event
1992
Bosnia and Herzegovina gains independence following the breakup of Yugoslavia; gambling regulation begins to diverge from former Yugoslav law.
1995
Initial gambling legislation is introduced, establishing the first regulatory framework for games of chance in the country.
2015
The Federation of Bosnia and Herzegovina enacts the Law on Games of Chance, modernizing and consolidating gambling regulation within its territory.
2016
Bosnia and Herzegovina applies for European Union membership, prompting consideration of regulatory alignment with EU standards, including in gambling.
2019
Republika Srpska adopts the Act on Games of Chance, introducing updated regulatory requirements and clarifying licensing procedures for gambling operators.
2022
Brčko District passes its own Law on Games of Chance, establishing a distinct legal and regulatory framework for gambling within the district.
Requirements
Software Certification and Technical Standards
All gaming software and gaming machines used by operators must be certified by authorized testing laboratories. Certification ensures compliance with technical standards for fairness, randomness, and security.
There is no separate supplier licensing regime, but operators are responsible for ensuring that all gaming systems, including random number generators (RNGs), meet the technical requirements set by the respective entity's regulatory body.
Technical standards cover system integrity, prevention of manipulation, secure communication protocols, and regular system updates to address vulnerabilities.
Data Protection, Privacy, and Server Location Requirements
Operators must implement robust data protection measures in line with local and EU data protection standards, including the GDPR, to ensure the confidentiality and security of player data.
Personal and financial data of players must be securely stored, with access restricted to authorized personnel only.
Operators are required to ensure that servers hosting gambling platforms and player databases are located within the jurisdiction or in a location approved by the relevant regulatory authority.
Data transmission between players and the operator’s systems must be encrypted to prevent unauthorized access or data breaches.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must establish and maintain comprehensive AML policies and procedures, including customer due diligence and ongoing monitoring of transactions.
KYC procedures require verification of player identity, age, and source of funds before allowing participation in gambling activities or processing significant transactions.
Suspicious transactions must be reported to the relevant financial intelligence unit as mandated by national AML laws.
Operators must provide regular training to staff on AML and KYC obligations and maintain records of all checks and reports.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
Operators are required to maintain detailed records of all financial transactions, including deposits, withdrawals, bets, wins, and losses.
All financial activities related to internet games of chance must be executed through banks located within the relevant entity, such as Republika Srpska, ensuring traceability and compliance with local financial regulations.
Regular financial reporting to the regulatory authority is mandatory, including submission of audited financial statements prepared in accordance with recognized international or national accounting standards.
Records must be retained for a specified period, typically several years, to allow for regulatory inspection and auditing.
Technical Implementation Requirements for Responsible Gambling Tools
Operators must integrate technical tools that enable players to set deposit, loss, and time limits on their gambling activity.
Self-exclusion mechanisms must be available, allowing players to voluntarily block themselves from gambling for specified periods.
The system must provide clear and accessible information about responsible gambling, including links to support organizations and helplines.
Operators are required to monitor player behavior for signs of problem gambling and implement interventions as necessary, such as sending warnings or restricting access.
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
