Slovenia Gambling Regulations

B. Atanasov
Boris Atanasov is an iGaming writer with over four years’ experience, creating engaging content on slots, video poker, roulette, and blackjack.
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Gambling Regulation Slovenia, officially known as the Republic of Slovenia, is a country situated in Central Europe. Gambling is one of the industries that have undergone significant changes throughout the country’s history. That said, many changes are still required to transform the gambling sector in Slovenia into a fully regulated, legally compliant industry.

As part of the former Yugoslavia, Slovenia began establishing its own legislative framework only after gaining independence. For several years after Slovenia achieved independence, gambling was an unregulated industry.

In 1995, the country began properly regulating land-based casinos and gaming halls by implementing a Gambling Act that still governs the industry. In addition to casino games, other forms of land-based gambling were also legalized, moving the Slovenian gambling industry toward a more regulated future.

Online casinos have also been legalized in Slovenia, but the country still takes a restrictive approach toward offshore operators. There have been discussions about introducing a new bill that would liberalize the overall gambling industry in Slovenia, including the online sector.

History of Gambling in Slovenia

1Back in time

During the Yugoslav era, gambling was legal only for tourists, and land-based casinos within the country could be entered only by holders of foreign passports. Although the gambling landscape has evolved dramatically, Slovenia’s gambling industry still relies heavily on tourists.

In the years after tourist-focused casinos were introduced, the federation grew more receptive to lottery games. A portion of lottery revenue was allocated to cultural, sports, and social organizations, which made the idea appealing to lawmakers. In addition, lottery prizes were relatively modest and tickets were inexpensive, so there was little risk to workers’ finances.

2Until 1998

Until 1998, Slovenia lacked a coherent policy for the gaming industry or clear guidelines on how it should be governed and developed. From 1985 through the end of the privatization period, the gambling sector grew rapidly and experienced considerable turbulence.

By the mid-1990s, the national government attempted to slow the privatization of casino companies in accordance with federal law, while local authorities envisioned a different approach. This clash sparked numerous conflicts between casino owners and politicians.

In 1995, the Slovenian Gaming Act was passed, and it remains the primary piece of legislation governing gambling in the country. The act distinguishes between classic gambling and casino gambling. Under the law, lotteries, lotteries with instant prizes, bingo, lotto, quiz lotteries, sports betting, and similar activities are classified as “classic gambling”. Only two exclusive operators may offer these games: Loterija Slovenije (The Lottery of Slovenia) and Sportna Loterija (The Sports Lottery). Non-profit and humanitarian organizations may also run lotteries, bingo, or raffles, but such events may not be held more than once a year. Licenses for classic gambling games are issued by the Minister of Finance.

The act also defines two types of entities that can offer special forms of gambling: casinos and gaming halls. Casinos may operate an unlimited number of slot machines and table games, whereas gaming halls are limited to 100–200 slot machines.

32003 and 2004

Amendments passed in 2003 shifted Slovenia’s gambling industry toward domestic players, while tourist gambling became less of a priority. In 2004, when Slovenia joined the EU, the country was required to align its gambling legislation with the EU’s internal market principles.

42012

In 2012, lawmakers drafted a new act intended to regulate online gambling in Slovenia and bring it into line with EU regulations. The act was scheduled to take effect in 2014, but implementation stalled, leaving online gambling completely unregulated until 2016. That year, a law finally legalized online casinos. However, the only online casino license issued went to Casino Portorož, and private companies still cannot apply for an online casino license.

52021

At the end of 2021, lawmakers submitted a draft of a new Gambling Act aimed at updating the current legal framework. If approved, the act could create a more liberal gambling environment and allow foreign investors to enter Slovenia’s gambling market.

Gambling Regulations in Slovenia

After Slovenia gained independence, its gambling industry remained largely unregulated for several years. In 1995, however, the country introduced the Gaming Act (Zakon o igrah na srečo), which is still the primary legislation governing gambling in Slovenia. Because the industry is constantly evolving, this law has been amended several times to maintain adequate regulation. In fact, Slovenia is even considering a new amendment to the law in 2022 designed to make the domestic gambling market more inclusive.

Under the Gaming Act, land-based casinos and gaming halls may operate if they obtain a license from the Financial Administration of the Republic of Slovenia. Although these operations are legal, they must follow specific restrictions. The Gaming Act allows brick-and-mortar casinos to offer numerous table games and an unlimited number of slots. However, gaming halls may host only 100 to 200 slot machines. They are also prohibited from providing any other types of games.

Article 83 of the Gaming Act sets the legal age for entering a gambling facility and taking part in casino-style activities at 18. No age restrictions apply to other forms of gambling available in the country.

When Slovenia joined the EU in 2014, its gambling legislation had to comply with EU directives. As an EU member, Slovenia must observe Article 56 TFEU 2 and Article 8 of Directive 98/34/EC. Unfortunately, the current regulatory framework does not meet the EU’s free-trade requirements.

In 2016, the country legalized online casinos, but only one operator received permission to run a virtual casino. At present, there is no licensing system that allows additional operators to apply for permission to run online casinos in Slovenia. The government is also taking strict action against foreign gaming sites, blocking access to every virtual casino except the single licensed platform.

This restrictive approach to online gambling conflicts with EU and EEA directives. Under pressure from the EU, the Slovenian government is working on several changes to the Gaming Act. The planned amendments aim to make both offline and online gambling more inclusive and fully compliant with EU directives.

Land-Based Casinos and Gaming Halls in Slovenia
Other Forms of Legal Gambling in Slovenia
Online Gambling in Slovenia

Gambling Licensing Body in Slovenia

Gambling Currently, land-based casinos and gaming halls in Slovenia may operate only after receiving a license from the Financial Administration of the Republic of Slovenia. The number of casino and gambling hall licenses is limited, and once the cap is reached, other operators cannot apply for a license.

Currently, the law allows 15 land-based casinos to operate within Slovenia, while the number of gambling halls has been capped at 45. Both limits have been reached, and it is currently impossible for new operators to apply for a casino or gambling hall license. However, the maximum number of gambling licenses is updated almost every year, which means that new casino or gambling hall licenses may be issued soon.

If new opportunities for casino or gaming hall licenses appear, those who wish to apply can find more information on the official website of the regulatory body. Conveniently, the website of the Financial Administration of the Republic of Slovenia is available in English.

Gambling Taxes in Slovenia

Taxes While winnings generated through gambling do not incur any personal taxes, operators of land-based casinos and gaming halls are required to pay taxes. The general gambling tax levied on gross gambling revenue ranges from 5% to 18%. The rate depends on the type of game offered by the operator.

Gambling companies in Slovenia are also required to pay a concession or license fee, which may range from 5% to 45%. This fee is likewise based on gross gambling revenue, and the rate depends on the type of games offered by the operator. Brick-and-mortar gambling operators may also have to pay a tax on winnings when the prize value exceeds €300. In that case, a 15% tax is applied to the winnings.

Gambling companies are also required to pay other types of taxes, such as a 19% corporate tax. One exception is VAT, from which the gambling industry in Slovenia is exempt.

Closing Thoughts

Conclusion Some forms of gambling had been operating in Slovenia even before the country gained independence. After Slovenia was no longer part of Yugoslavia, the gambling industry operated for several years without proper regulation. In 1995, however, the Gaming Act of Slovenia was enacted, legalizing and regulating land-based casinos and gaming halls.

The Gaming Act is still the main piece of legislation that governs gambling in Slovenia. It has been amended several times over the years to keep pace with the constantly evolving gambling industry. While land-based forms of gambling were legalized in 1995, the sector remains restricted, with the law imposing a limit on the number of licenses that can be issued to land-based casinos and gaming halls.

For quite some time, online gambling in Slovenia was illegal and unregulated. The only forms of online gambling available until 2016 were online lotteries and sports betting, offered exclusively by the state-owned Loterija Slovenije and its subsidiary Sportna Loterija. In 2016, online casino gambling was legalized, but only one operator was permitted to run a virtual casino, and no other company was allowed to apply for an online casino license.

As the current gambling legislation in Slovenia conflicts with EU directives, the country has been pressured to amend its policies. Consequently, Slovenia is considering passing a new Gaming Act in 2022 to create a more inclusive and fair gambling industry.