480.

Pursuant to Article 88 paragraph 2 of the Constitution of the Republic of Montenegro, I hereby pass the

DECREE ON PROMULGATION OF THE LAW ON GAMES OF CHANCE

(“Official Gazette of the Republic of Montenegro”, No. 52/04 of 2 August 2004

and “Official Gazette of Montenegro”, No. 13/07 of 18 December 2007) This is to promulgate the Law on Games of Chance, adopted by the Parliament of the Republic of Montenegro at the seventh meeting of its first regular session in the year 2004, held on 28 July 2004. Number: 01-074/2 Podgorica, 30 July 2004 President of the Republic of Montenegro Filip Vujanović, signed

LAW ON GAMES OF CHANCE

I. GENERAL PROVISIONS

Article 1 This Law shall govern the system and conditions of organizing games of chance and prize-winning competitions. This Law shall not apply to contracts on the games of chance concluded between citizens.

Article 2 In the context of this Law, games of chance shall be the games in which participants have equal opportunities for acquiring winnings, against indirect or direct payment of a specified amount, and in which the outcome of game depends on chance or an uncertain event in the game. A quiz in which the outcome depends on chance or an uncertain event shall be considered to be a game of chance in the context of this Law. A quiz in which the outcome depends solely on the knowledge of participants in the play, on the basis of which the player is offered an opportunity to acquire a reward in money, things, services or rights, where no special payment is required, shall not be considered to be a game of chance.

Prize-winning competitions, in the context of this Law, shall be the games organized for the purpose of promoting one’s own products and services, provided that no special payment is required for participation in the game.

Article 3 The games of chance shall be divided into two groups:

1) lottery games of chance: - lottery; - express and instant lottery; - bingo; - TV tombola and tombola held on the premises; - lotto; - keno; - sports pools; - toto; - additional games based on lotto and toto; - video lottery; - fonto; - other similar games of chance based on draws;

2) special games of chance: - games organized in casinos; - betting games; - games played on slot machines.

Article 3a Distance between facilities in which lottery games of chance and special games of chance are organized and educational institutions (primary and secondary schools) must not be below 250 meters.

Article 4 Individual expressions used in this Law shall have the following meanings:

1) lottery games of chance shall be the games organized by public drawings with a pre-defined winning fund;

2) lottery shall be the game in which a player holds a lottery ticket issued by the game operator, which, in line with the game rules, has a pre-printed number. The lottery ticket shall be a winning one if a certain part of the number or the entire number appearing on the lottery ticket is drawn in a public lottery draw held at a pre-defined date;

3) express lottery shall be the game in which a player has a lottery ticket issued by the game operator, which, in line with the game rules, has a pre-printed type and amount of prize or a certain number, covered by a protective screen. The lottery ticket shall be a winning one if it bears the prize, symbol or number, which, in line with the game rules, indicates the reward;

4) instant lottery shall be the game in which a player holds an instant lottery ticket issued by the game operator, which, in line with the game rules, has a pre-printed

type and value of the prize, or a certain number or a symbol, covered by a protective wrapping or a protective screen, which the player removes by opening the wrapping or scratching off the screen. The instant lottery ticket shall be a winning one if it shows the prize or the number or the symbol previously designated as the winning one, in line with rules of the game;

5) sports pool shall be the game in which a player takes part by filling in a ticket, issued by the game operator, with pre-printed pairs of opponents in matches and guesses the results of the matches on the ticket for each pair, using symbols defined by the game rules. The ticket shall be a winning one if the player guessed well all the results or as many results as required by the game rules, and if the symbols have been properly filled in or the required result symbols crossed on the ticket, or the coupon, and if other conditions set by the game rules have been met;

5a) toto shall be the game in which a player takes part by filling in a ticket, issued by the game operator, with pre-printed pairs of opponents in matches, and guesses the results of football matches on the ticket for each pair, using symbols or designations defined by rules of the game. The ticket shall be a winning one if the player guessed well all the results or as many results as required by rules of the game, and if the symbols have been properly filled in or the required result symbols crossed on the ticket, or the coupon, and if other conditions set by rules of the game have been met;

6) lotto, keno and similar games shall be the games in which a player fills in a ticket, issued by the game operator, with pre-printed numbers, in line with rules of the game, with the intention to guess a certain group of numbers, crossing them at his own choice. The ticket shall be a winning one if all the numbers or some of the numbers crossed on the ticket match the numbers drawn in a public draw and if other conditions set by rules of the game have been met;

7) bingo and TV tombola shall be the games in which a player has a tombola card with pre-printed numbers, in line with rules of the game, and the numbers are drawn in a public draw broadcasted by TV at a pre-set date, at the pre-set time, in line with the game rules;

8) tombola held on the premises shall be the game of chance in which a player has a tombola card with pre-printed numbers, in line with the game rules. The player shall win a prize if the numbers printed on the card have been drawn in a draw, which cannot be broadcasted by public media;

9) video lottery shall be the game played at video lottery terminals, where the terminals have been linked into an electronically controlled network, within which the players may lay stakes at various games and jackpot games, in line with rules of the game, having a possibility of multiple stakes and winnings. Whenever the player lays a stake in a jackpot game, certain percentage of his stake goes into the jackpot prize fund. The rules of the game shall define the conditions for winning a jackpot;

10) fonto and similar games shall be the games played over the telephone, Internet and similar media, where a player is assigned or a player chooses himself a certain number or other unique symbol, by a telephone call and after meeting other conditions, if they are foreseen by the game rules. The player shall win a

prize if the given number or other unique symbol is drawn in a public draw, in line with the game rules;

11) special games of chance shall be the games where a player competes against another player or the operator and expects winnings depending on the money paid and rules of the game;

12) games organized in casinos shall be the games where the players play against the casino or against each other in line with international rules at gaming tables using:

- small balls (roulette, boulle, etc.); - dice (craps and alike); - cards (baccarat, trente-quarante, blackjack, punto banco, mini punto

banco, shemin de fer, Caribbean poker and alike); 13) betting games shall be the games where the players, in line with rules of the

game, place bets on the results of various sports and other events: - betting on results of single or group sports events, - betting on results of dancing, singing, music and similar events - other betting;

14) games of chance played on slot machines shall be the games organized on automatic machines, electronic roulettes and other machines with multiple stakes and winnings (multiplayer) and on a system of automatic machines, where a larger number of automatic machines are connected for the purpose of forming a single jackpot with the same and simultaneous chances for all players (progressive);

15) automatic machines for the games with multiples stakes and winnings (multiplayer) shall be mechanical, electronic and similar devices on which the players, by payment of a certain amount (chips, coins and direct payment to the cashier or on the machine), have the possibility of winning.

Article 5

The organization of games of chance shall be the activity of public interest and an exclusive right of the Republic of Montenegro (hereinafter: the Republic), unless otherwise specified in this Law. Public interest in the area of organizing games of chance shall be accomplished, inter alia, for the following purposes:

- the provision of funds for social and humanitarian activities, protection of mental health, program activities of the youth and other purposes provided by this Law,

- the harmonization of games of chances with social, economic and other circumstances,

- the protection from risks of criminal, fraud and other adverse impacts pertaining to the games of chance.

The Republic may transfer the right of organizing games of chance to business organizations with status of a legal entity that are registered for organizing games of chance (hereinafter: the operators), by way of concessions.

Article 6

The winnings from the games of chance may be in money, goods, services or rights.

The operators of games of chance shall guarantee for the payment of winnings with all of their assets.

The Republic shall not guarantee for the payment of winnings.

Article 6a Operators of games of chance in casinos are obliged to keep records of the persons who pay or who are paid out an amount exceeding EUR 15,000. Operators of betting games are obliged to keep records of the persons who pay or who are paid out an amount exceeding EUR 1,000. The manner of keeping records referred to in paragraphs 1 and 2 of this Article shall be prescribed by the Ministry of Finance.

Article 7

It shall be prohibited to: 1) participate in games of chance organized abroad for which stakes are paid in the

territory of the Republic; 2) collect stakes in the territory of the Republic for the games of chance organized

abroad; 3) sell, hold, concede, issue, advertise or represent in any other way in the territory

of the Republic foreign lottery tickets and foreign tickets for the games of chance;

4) organize games of chance in duty-free zones. Notwithstanding paragraph 1, bullet 3 above, holding foreign lottery tickets and tickets for the games of chance organized abroad shall be allowed provided the holder of such tickets is personally participating in the game and has paid the stakes abroad.

Article 8 It is forbidden to organize the games where the participants pay certain amounts to the participants who have previously joined the game and expect the payment of certain amounts from the participants who would join the game after them (money chain, etc.), as well as the receipt of other payments and the promising of winnings contrary to Article 2 above.

Article 9 Operating Internet gaming or games played via other means of telecommunication shall only be allowed to business organizations granted a concession for operating games of chance, upon obtaining approval from the administrative authority competent for games of chance (hereinafter: the Competent Authority).

Business organizations referred to in paragraph 1 above shall connect their information system for Internet gaming to the information system of the Competent Authority and provide it with access to data and system notes at any time.

For the organization of game of chance referred to in paragraph 1 above, a concession fee shall be determined in the amount of EUR 10,000 per month, to be paid by the 15th day in a month for the current month.

Article 9a In the context of this Law, games of chance shall not be the entertainment games played on computers, simulators, video automatic machines, pinball machines and other similar devices, put into function by means of money or chips, nor darts, billiards and other similar games that require the payment, in which a player cannot have winnings in money, things, services or rights, but a right to one or more free games of the same type.

II. GENERAL CONDITIONS OF ORGANIZING GAMES OF CHANCE

Article 10

Games of chance shall be organized by joint-stock companies and limited liability companies with a head-office in the territory of the Republic, provided they meet the conditions prescribed by this Law. The right to organize lottery games of chance and special games of chance may be transferred on the basis of a concession contract signed under decision of the Government of the Republic of Montenegro (hereinafter: the Government) to the legal entity referred in paragraph 1 above, provided such legal entity meets the conditions prescribed by this Law. The right to organize special games of chance, bingo, TV tombola and tombola played on the premises shall be transferred on the basis of a concession contract signed with the Competent Authority under an application submitted by the legal entity meeting the condition prescribed by this Law. In the granting of concessions for organizing games of chance, the following shall be taken into account particularly:

1) supply market saturation with games of chance in the Republic, or in a particular local community, and balance with the market supply in neighbouring countries;

2) the provision of harmonized, optimal and continuing development of the industry;

3) impact on social, cultural and economic environment and individuals; 4) volume of organizing games of chance from the aspect of supplementing tourist

offer; 5) experience and references in organizing games of chance and number of

concessions obtained;

6) performance, operations, background and financial standing of the legal entity; 7) the meeting of tax obligations and other charges by the legal entity and its

owners; 8) eligibility and quality of investments for obtaining a concession; 9) other issues relevant to the granting of concession.

The concession for organizing lottery games, excluding bingo, TV tombola, and tombola held on the premises, may be granted to only one concessionaire, organized as a joint-stock company.

Article 11 The procedure of granting concession for organizing lottery games and games chance in casinos shall be initiated by a public tender announced in at least one daily newspaper available at the whole territory of the Republic. The tender referred to in paragraph 1 above shall be announced and organized by the Competent Authority. The tender for granting concession for organizing games of chance shall specify in particular:

1) type of the game; 2) concession period; 3) terms and conditions that must be met by the bidder; 4) contents of documentation supporting the application; 5) manner and deadline for the submission of bids; 6) criteria for bid evaluation and other data depending on the type of game; 7) amount of one-off fee for obtaining a licence for organizing games of chance in

casinos. The amount of one-off fee referred to in paragraph 3, bullet 7 above, shall be EUR 2,000,000.00. The decision to grant the concession referred to in paragraph 1 above, after the completed procedure, shall be made by the Government upon proposal of the Competent Authority. On the basis of the decision referred to in paragraph 4 above, the concession contract shall be signed with the Competent Authority. The concession referred to in paragraph 1 above shall not be transferable. The concession referred to in paragraph 1 above shall be granted for the period of 10 (ten) years. Upon request of the concessionaire, the concession may be extended for a period of up to 5 (five) years, subject to the decision of the Government, if the conditions prescribed by the Law have been met.

The concessionaire shall submit the request referred to in paragraph 8 above to the Competent Authority not later than 3 (three) months before the expiry of the period for which the concession was granted. The concession contract may be cancelled, against a three-month prior notice. If the concessionaire cancels the concession contract due to losses in its business, the notice period shall be 30 (thirty) days. To be granted a concession for organizing games of chance, in addition to general conditions prescribed by this Law, the operator must also meet special conditions with respect to premises, staffing and equipment, prescribed by the ministry in charge of finance (hereinafter: the Ministry).

Article 12 Concessions for organizing games of chance in slot machine clubs, and for organizing betting games and tombola played on the premises shall be granted by the Competent Authority. The concession referred to in paragraph 1 above shall be granted through the concession contract, on the basis of application submitted to the Competent Authority, for a period of up to 3 (three) years. The concession referred to in paragraph 1 above shall not be transferable. Upon the request of the concessionaire, the concession may be extend for a period of up to 2 (two) years. The request referred to in paragraph 4 above shall be submitted to the Competent Authority, not later than 3 (three) months before the expiry of the period for which the concession was granted. The concession contract may be cancelled. To be granted the concession referred to in paragraph 1 above, in addition to general conditions prescribed by this Law, the operator must also meet special conditions with respect to premises, staffing and equipment, prescribed by the Ministry.

Article 13

The concession contract shall specify in particular: 1) name and head-office of the company; 2) place and address of business premises where the games of chance will be

organized; 3) type of games of chance that may be organized; 4) date of commencing the organization of games of chance;

5) concession period and terms for concession withdrawal; 6) amount and manner of payment of the concession fee; 7) manner of supervision; 8) provisions related to other rights and obligation of contractual parties.

Article 14

The concession for organizing games of chance shall be withdrawn from the operator if: 1) the concession has been granted on the basis of untrue data; 2) the concessionaire has not started to operate within the commencement deadline

determined in the concession contract; 3) the concessionaire stopped the operation in violation to the provisions of this

Law; 4) the concessionaire fails to meet the prescribed technical, IT and other conditions

any longer; 5) the concessionaire breaches the rules of the games of chance; 6) the concessionaire fails to pay obligations stipulated in this Law or fails to pay

winnings to players; 7) the concessionaire does not allow or otherwise prevents the supervision

prescribed by this Law or makes the supervision difficult; 8) the concessionaire presents the realized turnover incorrectly; 9) the concessionaire lends money to players; 10) the concessionaire breaches the provisions of the concession contract; 11) the facts have occurred due to which the concession would not have been

granted.

Article 15 The concession fees from games of chance, as established by this Law, shall belong to the Budget of the Republic. Out of the proceeds referred to in paragraph 1 above, 60% shall be used for the funding of plans and programs for the organizations which:

- are engaged in social protection and humanitarian activities; - deal with problems and meet the needs of disabled persons; - promote the development of sport; - are engaged in culture and technical culture; - are engaged in non-institutional education and training of children and youth; - contribute to the control of drugs and all forms of addiction.

Minimum 75% of the proceeds referred to in paragraph 2 above shall be used for the funding of plans and programs of non-governmental organizations. More detailed criteria for determining beneficiaries and method of distribution of the proceeds referred to in paragraph 2 above shall be set by the Government.

III. LOTTERY GAMES OF CHANCE

Rules of lottery games

Article 16

Conditions for organizing individual lottery games of chance shall be defined by rules adopted by the operator, for each type of the game, and they shall be applied upon getting the approval from the Competent Authority.

Article 17 Any natural person who meets the conditions to participate in a certain game of chance shall be deemed a player in such game of chance (round or series), in compliance with rules regulating a particular game of chance. With lottery games where the participation is proved by holding proof of payment, a player shall be any person with such proof, if data on such proof is identical to that recorded on a microfilm, magnetic media or that registered in the operator’s central computer system. Participant of the games of chances: lottery, instant lottery and express lottery, shall be a holder of a valid, undamaged ticket issued by the operator.

Article 18 The rules of the lottery games of chance must include the following:

1) the name and head office of the game operator; 2) the name of the operator’s body which made a decision on organizing the game,

and the date and number of such decision; 3) the name, description and duration of the game of chance; 4) the conditions for participating in the game; 5) the place where the game shall be organized, i.e. the territory where the lottery

tickets shall be sold; 6) the unit price of the lottery ticket (combination) and the deadline for effecting

payment for participating in the game; 7) the quantity and cash value of the lottery tickets issue; 8) the determination of the prize fund and types of winnings; 9) the description of the lottery ticket, payment slip or proof of payment; 10) the manner, procedure and control of the draw and/or of the establishment of

winnings; 11) the manner of publishing the amount of the prize fund, value of individual

prizes and the game results; 12) the manner and deadlines for disbursing cash winnings i.e. collecting winnings

of other types; 13) procedure in case of cancelling the draw.

Article 19

The rules of a lottery game may not be changed once the sale of the lottery tickets of a particular round or series has started.

Article 20

The operator of lottery games is obliged to publish the rules of the game in at least one daily newspaper prior to the beginning of a certain round or series, and to enable persons interested in participating in the game to become familiar with rules of the game at all points of sale.

Drawing of prizes

Article 21

In lottery games where the winning combinations are established by drawing, the draw shall be public, and such draw must be conducted in the presence of a committee of not less than 3 (three) members, named by the operator. One member shall be the authorized representative of the Competent Authority.

Before the draw, the operator must establish and announce the total payments received and number of tickets sold in front of the committee referred to in paragraph 1 above.

Article 22 The Competent Authority may, at the request of the operator, allow the change of place or extension of draw date for maximum 30 (thirty) days. The operator must make the change of place or extension of draw date public in the same way in which the rules of the game were published. If the draw date is postponed in line with the stipulations of paragraphs 1 and 2 above, the operator may continue the sale of lottery tickets until the specified draw date. If the draw date is changed for technical reasons (power failure, malfunction of the lottery-wheel, etc.), the draw shall be continued within 24 hours, and the operator shall notify the Competent Authority about it. The lottery game operator may cancel a game, a round or series of a particular game, for which the sale of lottery tickets or cards has already started only upon obtaining approval from the Competent Authority and provided that the operator shall refund the players for the tickets or cards purchased.

Article 23

The Report shall be made on the course of the draw and members of the Committee shall sign it. The Report referred to in paragraph 1 above must indicate: place, time and type of the draw, number of tickets or cards sold and unsold, i.e., the total amount collected during a particular round or series, the winning combinations drawn and potential remarks given by the players. The operator shall submit to the Competent Authority the Report on the course of the draw within not later than 7 (seven) days from the date of announcing the draw results.

Notwithstanding paragraph 1 above, the operator of tombola organized on the premises shall keep daily records of the number of cards received and sold, by numbers, series, dates and quantity. On the basis of daily records referred to in paragraph 4 above, the operator shall compile monthly reports to be submitted to the Competent Authority by the 15th day in a month for the previous month.

Article 24 The operator shall announce the reports on the draw results and the amounts won in the daily newspaper in which the rules of the game were published and at the points of sale, not later than 7 (seven) days from the draw date.

The prize fund and payout

Article 25

The prize fund in lottery games of chance shall amount to 50% of the total value of issued lottery tickets for all types of lottery games, while in the case of bingo, TV tombola, tombola organized on the premises, sports pool, toto, lotto, keno and other games, it shall be 50% of the total value of payments received for a particular round. The amount of prize fund in a particular game of chance referred to in paragraph 1 above, for a particular round or series, has to be announced prior to the drawing of winnings. The prize fund referred to in paragraph 1 above shall return to the players as their winnings.

Article 26 The payment of cash winnings and the collection of prizes in goods or other winnings in lottery games of chance shall be carried out within the period set by the game rules, but not later than 60 (sixty) days from the date of announcing the final report on the game results. Upon expiry of the deadline referred to in paragraph 1 above, the committee referred to in Article 21 above shall establish which of the winnings in a particular round or series have not been paid out or taken over, and their respective value, and shall make a report thereon. If a winner in lottery games of chance fails to claim the winnings from the operator within 60 (sixty) days from publishing the report on the results of a particular game (round, series etc.), the amount of such winning shall be transferred to the next round or series or shall be used as winnings in other games.

The operator shall submit the report referred to in paragraph 2 above to the Competent Authority within not later than 7 (seven) days from the expiry of the period set for the payment and/or delivery of the winnings.

Article 27

A monthly fee equal to 10% of the base representing the total value of sold lottery tickets, slipss and cards decreased by the prize fund shall be paid for organizing lottery games. The fee for organizing lottery games of chance shall be paid by the 15th day in a month for the previous month. The fees for organizing lottery games shall constitute the Budget revenue of the Republic.

Article 28 Bingo, TV tombola and tombola held on the premises shall only be organized in specially arranged premises. The Competent Authority shall prescribe details about spatial and technical requirements for organizing bingo, TV tombola and tombola held on the premises. The Competent Authority shall determine whether the spatial and technical requirements are fulfilled.

Concessions for operating tombola held on the premises

Article 28a The operator of tombola held on the premises must have a core capital in the amount of EUR 75,000, and if the same operator is also entitled to organize another game of chance referred to in Article 3, bullet 2 above, such operator shall be required to provide the core capital prescribed for that game of chance as well. As security for the payouts to winning players and for the payment of concession fee and other obligations, the tombola operator must continuously, for the concession period and 30 days after the concession expiry, hold in a bank based in the Republic a deposit in the amount of EUR 30,000 or a bank guarantee for that amount.

Article 29 The application for getting concession for organizing tombola held on the premises shall be accompanied by the following documents, in particular:

1) data on the name and head-office of the company; 2) proof of registration; 3) the incorporation charter; 4) the three-year business plan; 5) proof of ownership or right to use appropriate space in which TV tombola or

tombola held on the premises shall be organized; 6) rules of the game;

7) proof of core capital.

Mutual rights and obligations shall be determined by the concession contract, which shall include elements referred to in Article 13 above.

Article 30 The concession for organizing bingo, TV tombola and tombola held on the premises shall be withdrawn before expiry of the period for which it was granted, if the existence of any of the reasons referred to in Article 14 above has been established.

One-off organization of lottery games

Article 31 Non-profit organizations with head-office in the territory of the Republic may organize tombola on the premises once a year for a special occasion for the purpose of raising funds for the performance of their activity. Tombola referred to in paragraph 1 above may be organized exclusively on the basis of the approval of the Competent Authority, given that tombola cards for such game may be on sale for maximum 30 days.

Article 32

The operator referred to in Article 31 above shall submit, together with request for the approval, the extract from the constitutional document showing the business activity of the operator, relevant decision of the authorized body of the operator on organizing the game carrying the name of the authorized person, the rules of the lottery game of chance, the plan showing the minimum number of lottery tickets to be sold in order to ensure the payment of winnings and liabilities, and proof of the provided deposit in the amount of planned prize payout.

Article 33

When deciding upon the request for organizing one-off tombola on the premises, the Competent Authority shall take into account particularly the following:

1) purpose of organizing the game; 2) assessed value of issued tombola cards; 3) total value of winnings; 4) price of a tombola card; 5) funds by which the operator secures the payment of winnings; 6) rules of the game.

The total value of issued tombola cards shall not exceed EUR 40,000. The price of a tombola card shall not exceed the value of the smallest winning.

Article 34 The operator referred to in Article 31 above shall pay a fee amounting to 5% of the total payments received in that game in favour of the Budget of the Republic.

The fee referred to in paragraph 1 above shall be due for payment within 7 (seven) days from the date of announcing the draw results, and the report on final calculation and proof of payment shall also be submitted to the Competent Authority within the same period.

IV. SPECIAL GAMES OF CHANCE

1. Casino games

Article 35 The games of chance referred to in Article 3, bullet 2, indent 1, may be organized only in casinos.

The games of chance referred to in Article 3, bullet 2, indent 3, may also be organized in casinos.

Concessions for games organized in casinos

Article 36 Applications for concession for organizing games of chance in casinos must be supported by the following:

1) data on the name and head-office of the company; 2) proof of registration; 3) the incorporation charter; 4) the three-year business plan; 5) proof of core capital; 6) proof of ownership or the right to use appropriate premises and of the size of

premises in which the games of chance will be organized; 7) indication of the type and scope of the games; 8) rules for each type of game of chance that will be organized, conditions for

participating in the game, the amount of stake, price of a token or credit point for the games on slot machines, description of the method of recording in the total-register of slot machines and deadline for the collection of payment for participating in the game;

9) data on individuals managing the business and proof of their education and qualification for carrying out activities in the casino;

10) rules of the casino; 11) data on type and number of gambling machines and gambling aids, with

detailed description for their identification; 12) proof that the authorized persons have not been convicted for criminal

offences against the payment system and commercial operations and that there are no pending criminal proceedings for such offences;

13) proof of deposit or a bank guarantee.

For the opening of the first casino, the operator who was granted a concession must submit the proofs referred to in paragraph 1, bullets 6 and 13 above, within not later than 6 (six) months from the date of issuing the concession granting decision.

Article 37 A concession contract shall be signed for each casino individually, on the basis of the concession granting decision.

The concessionaire shall notify the Competent Authority, with no delay, of changes in any data or circumstances, particularly if they refer to:

1) the concessionaire’s management members; 2) other persons authorized for representing and conducting the business of the

concessionaire; 3) identity of persons/entities that have a share in the concessionaire’s core

capital; 4) other circumstances important for the activities and business of the

concessionaire.

Article 38 During the concession period, the concessionaire must maintain the core capital in the amount of minimum EUR 300,000. If the operator also has the right to organize another type of game of chance referred to in Article 3 above, such operator must maintain the prescribed core capital for that game as well.

As security for the payouts to winning players and for the payment of obligations, the concessionaire must continuously, for the concession duration and 30 (thirty) days after the concession expiry, hold in a bank based in the Republic a deposit amounting to minimum 30% of the core capital referred to in paragraph 1 above or a bank guarantee for such amount, for each casino. The operator of games of chance must maintain, on a daily basis, a risk-deposit in the casino cashier’s desk in the amount of not less than EUR 50,000 for 5 (five) tables, and in the amount of EUR 20,000 for every additional 5 (five) tables.

Article 39 The Competent Authority may give consent to the concessionaire to move the casino to a new location. In addition to the proof of fulfilling the conditions referred to in Articles 44 and 45 below, the relevant request must specify:

1) explanation of the reasons of moving, 2) three-year business plan, 3) proof of ownership or right to use the premises in which the casino is to be

moved. The concessionaire shall start the operations on the new location within 6 (six) months from the date of obtaining consent for moving.

Article 40 The concession agreement shall particularly contain the data referred to in Article 13 above. The concessionaire shall organize only the games of chance of the scope and type defined in the concession contract. If games are organized on slot machines for games of chance in a casino, data on the number and type of machines shall be a constituent part of the concession contract.

Article 41 The concession for organizing games of chance may be withdrawn from the operator, if any of the reasons referred to in Article 14 above has been established.

Concession fees

Article 42 The concession fee, consisting of a fixed and variable portion, shall be paid for operating games of chance in casinos.

The annual fixed fee shall amount to EUR 50,000 per casino.

The amount of the fee referred to in paragraph 2 above shall be paid before the end of December in a current year for the following year.

The variable fee for organizing games of chance in casinos shall be paid on a monthly basis on the proceeds from the games of chance (for each game individually), and the monthly base for the computation of concession fee shall be the sum of daily computations for a particular casino game (cumulative), whereas the monthly base for the computation of the concession fee for slot machines shall be the sum of monthly computations by individual slot machines. The game operator shall submit monthly reports per type of game and per slot machine. Monthly computations shall be final. Daily computation by a particular gaming table shall be the closing balance of the value of tokens for the table plus money exchanged for tokens on the table, which is placed in a special box (drop) and the amount of credit, minus tokens transferred to the table (fills) during working hours of the table and the value of opening balance of tokens at the table (closing balance + drop + credits – fills – opening balance = daily computation per a table). The sum of daily computations for all equal tables and all slot machines shall be the daily computation for a particular game. Monthly computation by a particular slot machine shall be the total payments (Coin In = payments in chips, cash money or value papers of the system ticket in – ticket out) reduced for the amount of prizes paid to the players (Total Coin Out = payments in chips, cash money or value papers of the system ticket in – ticket out), and the difference shall

represent the monthly computation by a particular slot machine. The monthly base shall be the sum of monthly computations by individual slot machines. The value of entry tickets, tips and promotional tokens issued by the casino under the approval of the Competent Authority shall not be included in the computation of the concession fee base. Value of the promotional token shall not be higher than the lowest value of the tokens prescribed by the casino rules of game.

The entry ticket referred to in paragraph 7 above shall be considered the bill that cannot be exchanged on gaming tables for chips, or money in the casino.

The variable fee for organizing games of chance in casinos shall amount to 10% of the base for computing the fee referred to in paragraph 3 above.

The variable fee for organizing games of chance in casinos shall be paid by the 15th day in a month for the previous month. The fee for organizing casino games shall constitute the Budget revenue of the Republic.

Article 43 The concessionaire shall keep records, on the prescribed forms, of daily computations per individual gaming tables and monthly computations per individual slot machines, used in establishing the monthly base for computing and paying the necessary fee. The data from such records, the final monthly computation and copy of proof of payment of the fee shall be submitted to the Competent Authority by the 15th day in a month for the previous month. The concessionaire shall keep records, on the prescribed forms, of tips upon the closure of tables, and all other records on the basis of which daily computations for tables are done. The content and format of the forms referred to in paragraphs 1 and 2 above, and the method of submitting the required data shall be prescribed by the Ministry.

Technical requirements

Article 44 A casino must be organized in such a manner that the gaming area and the guest and staff areas relating to the games shall form an integrated space. A casino shall not have less than 5 (five) tables for games with balls, dice or cards. More detailed requirements pertaining to spatial and technical conditions that casinos must fulfil shall be prescribed by the Ministry, in conjunction with the state administration authority in charge of internal affairs.

The fulfilment of spatial and technical requirements shall be established by the Competent Authority.

Article 45 A casino must have a cashier’s desk and a separate and protected area for keeping cash and other valuables. The payment of stakes and winnings for the games of chance in casinos shall be set in euros. A casino must have an exchange office and an area for serving drinks and beverages (cafe bar etc.), and it may also have an area for preparing and serving food (restaurant etc.). Casinos situated in a hospitality unit categorized with no less then 3 (three) stars fulfil this condition. The concessionaire must provide non-stop audio-video surveillance of the casino with the recording, thus ensuring an on-going direct supervision. The concessionaire shall keep the recorded documentation of non-stop audio-video surveillance for 10 (ten) days, or longer upon the request of the Competent Authority.

The data from the documentation referred to in paragraph 5 above shall be confidential, and the operator may disclose it to other persons only in accordance with the Law.

The concessionaire must supervise the players and visitors for the games to be held in compliance with this Law. The concessionaire must provide security protection to players and visitors.

Article 46 The concessionaire may prohibit the players who have broken the rules of the game of chance from further participation in gaming and further presence in the casino.

Rules of casino and rules of games of chance organized in casinos

Article 47 The concessionaire shall issue the rules of the casino that must be posted on a visible place and be visible for all the visitors. The rules of the casino shall refer to the following particularly:

1) types of special games of chances organized in the casino; 2) conditions for entering the casino (identity proof and control of participants); 3) circumstances when certain players are forbidden to enter the casino house or

participate in the games of chance; 4) allocation of funds collected from tips; 5) working hours;

6) duties and obligations of casino employees pertaining to operating the games of chances;

7) organization of work of the casino with the layout of the casino premises.

Article 48 Rules shall be adopted for each type of games of chance held in the casino and they must be in compliance with good business practices and international rules.

The rules of the games of chance, for each type of game, shall be issued by the concessionaire, and they shall be applied after obtaining the approval of the Competent Authority.

The rules of the games of chance shall be written in the language that is in the official use in the Republic and translated into English, and they shall be made available to players at any time.

The rules of the game may not be changed during the game that the players started to play upon the payment of the amount for participating in a game.

Article 49 Persons under 18 years of age shall not be allowed to enter the casino, and the checking shall be made by control of identity documents. Officers in uniform shall be allowed to enter the casino only when on duty.

It shall be forbidden to bring in the casino any technical devices that could enable getting an advantage in a game.

The concessionaire shall ensure the supervision of entries into and exits out of the casino, along with the registration of visitors, and the continuing audio-video surveillance (control) of the reception desk, and the recording of the casino entrance-exit.

Special provisions regarding casino employees

Article 50 The casino employees who are directly involved in operating games of chance must have the certificate (license) on qualification for work in the casino. The manner and requirements for acquiring the license shall be prescribed by the Government. The casino employees shall not be allowed to play the games in the casino in which they work. The casino employees shall keep the confidentiality of information about the players that have become known to them while working in the casino. The casino employees shall be prohibited from accepting any commissions, gifts or services of any kind from the players and from financially supporting the players. The

players may give tips for casino employees, leaving such money in special boxes set for that purpose. The tips shall be allocated in accordance with the casino rules adopted by the operator and attached to the application for the tender for granting the concession. The management members and the managerial staff of the operator shall be excluded from the distribution of the tips.

2. Betting games

Article 51 Betting games shall be organized in specially equipped premises.

More detailed spatial and technical requirements shall be prescribed by the Ministry.

The fulfilment of spatial and technical requirements shall be established by the Competent Authority.

Article 52 Applications for concession for organizing betting games must be supported by the following:

1) data on the name and head-office of the company; 2) proof of registration; 3) the incorporation charter; 4) the three-year business plan; 5) proof of ownership or the right to use appropriate premises in which the

betting facility is located; 6) general betting rules; 7) proof of core capital; 8) proof of the fulfilment of spatial and technical requirements ; 9) proof of deposit or a bank guarantee; 10) proof of the payment of appropriate administrative fee.

The operator who has been granted the concession for operating betting games shall submit the proof referred to in paragraph 1, bullet 9 above by not later than the date of signing the concession contract. On the territory of the Republic, it shall be forbidden to organize betting:

1) that is contrary to this Law and good business practices and ethics; 2) that refers to the results of elections for president of the Republic, members of

Parliament, the mayors and city hall representatives, 3) by the operator whose owner or shareholder is at the same time the owner or

shareholder of a sport club, on the sport events and level of competitions in which such club is involved.

The provisions of Article 49 above shall also apply to the premises in which betting games are organized.

Concession withdrawal

Article 53

The concession for organizing betting shall be withdrawn before the expiry of the period for which it is granted, if any of the reasons referred to in Article 14 above has been established.

Concession fee

Article 54 The concession fee, consisting of a fixed and a variable portion, shall be paid for organizing betting games. The fixed portion of the concession fee for organizing betting games shall amount to EUR 500 per month per a betting shop and shall be paid in advance by the 15th day in a month for the current month. The variable portion of the concession fee for organizing betting games shall be calculated on a monthly basis in the amount of 10% of the base, consisting of all bets received decreased by the amounts disbursed, and it shall be paid by the 15th day in a month for the previous month. The concessionaire shall submit to the Competent Authority the monthly records with final computation of the operating results and proof of payment of the monthly fee for organizing betting games, by not later than the 15th day in a month for the previous month.

Monitoring of bets received and winnings disbursed

Article 55

The operator shall ensure that bets received and winnings disbursed are kept in such a manner that the monitoring system (ON-LINE monitoring) to be established by the operator can be connected to the information system of the Competent Authority thus providing the continuous and direct monitoring.

Article 56 The operator shall prescribe the placing of bets and conditions for participating in the betting by the betting rules. The rules shall be posted at the betting counter.

The operator holding the concession for organizing betting games must have a core capital of EUR 75,000. If the same operator also has the right to organize another game of chance referred to in Article 3, paragraph 1, bullet 2 above, such operator must have the prescribed core capital for such other game as well.

As security for the payouts to winning players and for the payment of obligations, the operator must maintain in a bank based in the Republic a deposit in the amount of EUR 30,000 for the bettin concession granted, and EUR 20,000 for each additional betting counter or a bank guarantee for that amount. The bets shall be received at the betting counters or via the betting terminal.

The technical requirements to be met by the operator of betting games shall be prescribed by the Ministry.

The fulfilment of technical requirements shall be established by the Competent Authority.

One-off organization of betting games

Article 57 Non-profit organizations which organize sports events may organize betting in the premises of the stadium or hall where the competition is held, once a year, in relation to that competition. The betting referred to in paragraph 1 above may be organized exclusively on the basis of the approval of the Competent Authority. The request for getting the approval shall be supported by:

1) the Articles of Association; 2) decision and rules for organizing betting; 3) rules of the game; 4) time of betting.

The operator shall pay a fee amounting to 5% of the bets received for organizing betting in favour of the Budget of the Republic.

3. Games of chance on slot machines

Article 58 Operating games of chance on slot machines referred to in Article 3, bullet 2, indent 3 above can only take place in adequate premises of slot maching clubs or casinos.

The operator who has been granted concession for operating games of chance on slot machines in clubs must maintain the core capital in the amount of EUR 75,000. If the operator also has the right to organize another type of game of chance referred to in Article 3, bullet 2 above, such operator must maintain the prescribed core capital for that game as well. As security for the payouts to winning players and for the payment of obligations, the concessionaire must continuously, for the concession period and 30 (thirty) days after the concession expiry, hold in a bank based in the Republic a deposit amounting to EUR

25,000 for each of the first 3 (three) opened slot machine clubs, and EUR 2,000 for each additional slot machine club or a bank guarantee for such amount. The operator of games of chance having electronic roulettes in the club must maintain, on a daily basis, a risk-deposit in the club cashier’s desk in the amount of not less than EUR 5,000 for each electronic roulette.

Article 59 An application for obtaining concession for organizing games on slot machines in slot machine clubs shall be accompanied by proof of the fulfilment of the conditions referred to in Articles 36 and 58 above.

Article 60

Rights, obligations, relationships and responsibilities prescribed in Articles 39, 40, 41 and 43, paragraphs 1 and 2, Articles 46 and 49, relating to the casino games, shall accordingly apply to the business organizations organizing games of chance in slot machine clubs.

Concession fee

Article 61 The operator of slot machine games of chance shall pay the concession fee consisting of a fixed and a variable portion.

The fixed portion of the concession fee for operating games of chance in slot machine clubs shall be paid by the concessionaire on a monthly basis in the amount of EUR 50 per a slot machine. This amount shall be paid by the 15th day in a month for the current month. The variable portion of the concession fee for operating games of chance in slot machine clubs shall be computed monthly. The monthly base shall be the total of daily computations for all slot machines individually. The monthly computation shall be final.

The monthly computation for individual slot machines in a slot machine club shall be conducted in accordance with Article 42, paragraph 6 above.

Tips and tickets shall not be part of the fee computation base.

The fee for operating games of chance in slot machine clubs shall be 10% of the computation base referred to in paragraph 3 above. It shall be paid by the 15th day in a month for the previous month. The monthly fee referred to in paragraph 3 above shall not be paid during temporary interruptions in the work of the club. A temporary interruption shall be an interruption of work not longer than 30 (thirty) days during the course of a year, and must be notified to the Competent Authority within maximum 7 (seven) days before the interruption.

The temporary interruption shall not be the interruption due to current maintenance of machines. If the interruption takes longer than 60 (sixty) days, the concession shall cease to be valid any more. The operator must submit proof of payment of the concession fee to the Competent Authority, by the 15th day in a month for the previous month.

Technical requirements

Article 62 A slot machine club must have at least 10 (ten) slot machines for games of chance, and the gaming and guest areas of the total surface of minimum 35m2. The operator must post the notice on the percentage of cash recovery and rules of the game at a visible place to be accessible to the players in the club. A slot machine club must have a cashier’s desk and a separate and protected area for keeping cash and other valuables. It may also have an area for serving drinks and beverages (cafe bar etc.) or an area for preparing and serving food (restaurant etc.). The concessionaire must have the monitoring information system for gaming machines (ON-LINE monitoring) enabling the connection to the information system of the Competent Authority. More detailed spatial and technical requirements for slot machine clubs shall be prescribed by the Ministry. The fulfilment of spatial and technical requirements shall be established by the Competent Authority.

V. CONDITIONS AND METHODS OF OPERATING GAMING DEVICES AND GAMING TABLES

Article 63

Before putting gaming devices and gaming tables into use, the technical inspection shall take place, against the appropriate certificate.

Gaming devices shall not be put into use unlesss all the parts that control the coin-in, coin-out, motherboards, the game and the parts influencing the outcome of the game have been sealed.

The gaming devices to be put into use must have soft meters, as an automatic database (total-register) for registering and providing data on the overall work of the machine, and a separate electronic device tracking the turnover on the machine.

Article 64 The technical inspection may be conducted by an authorized legal entity meeting the prescribed conditions. The conditions to be met by the legal entity referred to in paragraph 1 above shall be established by the Ministry’s regulation. The procedure for granting powers and competences and choosing the legal entity for performing technical inspection shall be carried out by the Competent Authority, through a public tender. Game operators shall present the legal entity in charge of technical inspection with a warranty and the manufacturer’s certificate of compliance with international quality standards for all gaming devices being put into operation for the first time. The legal entity authorized to perform technical inspection shall not carry out such inspection unless the documents referred to in paragraph 4 above have been submitted for review. The certificate on technical correctness of a slot machine must be renewed upon the replacement of a motherboard and putting the slot machine into operation again. The sealing of the devices controlling payments received and disbursed, games and parts influencing the game outcome, motherboards, records of starting and closing balance, data on the entire slot machine work from the control device, i.e., slot machine total-register for the purpose of supervising the operator’s work, the recording in case of motherboard replacement, repairs, temporary or permanent interruptions in operating games of chance due to the change of location and in other cases, shall be performed by the Competent Authority. A fee amounting to EUR 30 shall be paid for the sealing referred to in paragraph 7 above per each slot machine motherboard sealed.

The fee referred to in paragraph 8 above shall constitute revenue of the Budget of the Republic.

Article 65 Gaming devices and gaming tables may be engaged only if bearing a visible registration sticker with the information on the type of machine or table, location, the sticker validity period and serial number, and information on the game organizer. The stickers referred to in paragraph 1 above shall be issued by the Competent Authority.

The records of issued registration stickers shall be maintained by the Competent Authority. The content of the stickers and methods of maintaining records of issued stickers shall be prescribed by the Ministry.

Article 66 Game organizers shall notify the Competent Authority of any gaming tables or gaming devices put into operation or withdrawn from operation 7 (seven) days before the time planned for such action.

Article 67 Gaming devices shall be of such construction that, based on the total combinations programmed, minimum 80% of the total cash received for participating in the games is returned to players, with the coin-in and coin-out data being recorded by soft meters.

Article 68 Game operators and other persons employed by the operator shall keep the information on players and their participation in gambling confidential.

VI. PRIZE-WINING COMPETITIONS

Article 69 Prize-winning competitions shall be the competitions organized by business organizations, entrepreneurs and other legal entities and natural persons, in order to advertise their products and services, where the organizers undertake to give prizes in goods and services to winners, and participants are not required to make a special payment to participate. The competition organizers shall pay 5% of the established total winning fund to the Budget of the Republic. The rules of prize-winning competitions must specify:

1) full name, registration number and head-office address of the operator; 2) purpose of organizing prize-wining competition; 3) duration of prize-wining competition; 4) the prize fund, determined exclusively in goods and services that the operator

cannot exchange for money, and the total value of which in market prices cannot exceed EUR 100,000;

5) individual prices in euros of every prize from the price fund established in accordance with bullet 4 above;

6) conditions for participating in the competition; 7) procedure for organizing and conducting the competition and drawing prizes; 8) method of announcing the results and/or winners;

9) deadline for collecting the prizes; 10) procedure in which participants will receive the prizes, if they have met the

conditions prescribed by the rules; 11) the competent court in case of any disputes between the operator and

participants. The rules of the competition referred to in paragraph 3 above shall be prescribed by the operator, and shall be applied once approved by the Competent Authority and published in at least one daily newspaper. The operator shall sell the winning fund exceeding EUR 500 which remained undistributed after the competition in the public auction, and the proceeds from such sale shall be paid to the Budget of the Republic within 90 (ninety) days upon the expiry of the period for collecting the prizes. The prize-winning competitions may not be organized and held through the same procedure as the games referred to in Article 3, paragraph 1, bullet 1 above, and the procedure in which they are organized shall depend on the activity being promoted. Other requirements to be met by organizers of prize-winning competitions shall be prescribed by the Ministry.

Article 69a The provisions of the law governing tax administration shall accordingly apply to the procedure for establishing and paying the variable portion of the concession fee.

Article 70 The Competent Authority shall:

1) decide on features of a game, as the game of chance in the context of this Law; 2) prepare initiatives for the drafting of regulations in the area of games of chance; 3) deleted; 4) give consent to the rules of the games of chance; 5) keep the register of game operators; 6) take part as member of the committee for drawing and finding winners in lottery

games of chance; 7) supervise the operators’ core capital and deposits, as needed, but at least once in

3 (three) months; 8) issue approval for holding risk-deposits for the purpose of ensuring the payout of

winnings in special games of chance; 9) consider the bids received under tenders for the granting of concession for games

of chance, in compliance with concession granting procedure, and perform other professional duties in connection with the concession granting;

10) prepare proposals for concession withdrawal; 11) assess the prize fund value for operating competitions with prizes in goods and

services; 12) propose regulations regarding other conditions to be met by gaming facilities;

13) issue permission for promotional tokens that cannot be replaced for money; 14) decide on uniform financial software for betting; 15) issue permission for the change of location to slot machine clubs, betting shops

or betting counters; 16) issue stickers for gaming devices and gaming tables; 17) issue permission and supervise the organization of competitions with prizes in

goods and services; 18) perform other duties in accordance with the law.

VII. SUPERVISION

Article 71 The supervision over the implementation of this Law and enabling regulations related to it shall be conducted by the Competent Authority. Inspection supervision duties including those within the supervision referred to in paragraph 1 above shall be performed by an authorized official of the Competent Authority, in accordance with the law. In addition to the duties and authorities laid down in the Law on Inspection Supervision, the authorized official referred to in paragraph 2 above shall have a duty and authority to be present at the opening, during the computation and at the closing of gambling tables and gambling devices in a casino or room with gaming devices, attend the daily closing of the cash register and other activities that are directly or indirectly related to operations of the casino, gaming device shop or betting shop concerned. The authorized official referred to in paragraph 2 above shall be prohibited from taking part in games of chance in casinos, gaming device shops and betting shops.

VIII. PENALTY PROVISIONS

Article 72 A fine ranging from 50-fold to 300-fold amount of minimum official monthly salary in the Republic shall be imposed on the business organization, if it:

1) organizes lottery games contrary to the provisions of this Law (Articles 10 and 11);

2) changes the rules of a particular lottery game round or series after the sale of tickets for that particular round or a series has started, or postpones the date or location of the drawing of winnings without the approval (Articles 19 and 22);

3) conducts the drawing of the winning combination without the committee, or fails to ascertain in front of the committee the number of sold tickets before the drawing (Article 21);

4) fails to pay out the winnings within the deadline set in the game rules (Article 26, paragraph 1);

5) organizes a one-off lottery game with more than one drawing during a year or without the approval of the Competent Authority (Article 31, paragraph 1);

6) organizes the game of chance - tombola contrary to this Law and the concession contract (Article 28);

7) keeps selling the lottery tickets for longer than 30 days for a one-off special lottery game (Article 31, paragraph 2);

8) starts operating games of chance, without signing the concession contract (Article 12, paragraph 1 and Article 37, paragraph 1);

9) operates casino games contrary to this Law and the concession contract (Articles 37, 38 and 39);

10) continues operating games although it does not meet some of the conditions for operating games in casino (Articles 45, 48, 49, 50, 62, 63, paragraphs 1 and 2, and Article 65);

11) operates betting games contrary to the provisions of this Law (Articles 52, 55 and 56);

12) operates betting on an organized sport event more than once a year (Article 57); 13) operates games of chance in a gaming device club contrary to the provisions of

this Law (Articles 58, 60, 62, 63, 64 and 65). A fine ranging from 10-fold to 20-fold amount of minimum official monthly salary in the Republic shall be also imposed upon the responsible person in the business organization, for the offences referred to in paragraph 1 above.

Article 73 A fine ranging from 20-fold to 300-fold amount of minimum official monthly salary in the Republic shall be imposed on the business organization, if it:

1) acts contrary to prohibitions referred to in Articles 7 and 8 above; 2) fails to publish the rules of the lottery game before the sale of lottery tickets

started (Article 20); 3) fails to publish the change in the location or postponed drawing date in the

same manner as the rules of operating game of chance (Article 22, paragraph 2);

4) cancels organizing of game of chance, round or series of a particular game for which the sale of tickets has already started, and fails to refund the money collected from sale of tickets (Article 22, paragraph 5),

5) fails to submit the drawing report to the Competent Authority in time (Article 23, paragraph 3);

6) fails to publish the drawing results or the winnings in a timely or prescribed manner (Article 24);

7) fails to make it possible for the Competent Authority to decide upon the distribution of winnings if they were not collected in time (statutory limitations), within the prescribed period (Article 26, paragraphs 2, 3 and 4);

8) fails to compute, or incorrectly computes, or fails to pay the fee for operating games of chance within the prescribed time (Articles 27, 42, 54 and 61);

9) fails to provide information on daily computations per individual gaming table and information on monthly computations per individual gaming device, used

to come to the monthly base for computing and paying the fee and if it fails to provide proof of payment within the prescribed time (Articles 43 and 61);

9a) fails to keep daily records of the number of received and sold cards by number, series, date and quantity and fails to submit monthly report within the prescribed time (Article 23, paragraphs 4 and 5);

10) fails to provide appropriate supervision via audio-video surveillance devices and other similar technical equipment in casinos (Article 45, paragraph 4);

11) fails to make the rules of games available to players in casinos, at betting counters or in gaming device shops (Article 48, paragraph 3, Article 56, paragraph 1 and Article 62, paragraph 2);

12) allows a person under the age of 18 years to be found in casino or a gaming device shop (Article 49, paragraph 1);

13) fails to issue regulations on rights and responsibilities of employees related to conducting particular games (Article 47, paragraph 2, bullet 6);

14) hires a person that does not posses a certificate on necessary qualifications for working in casino (Article 50, paragraph 1);

15) puts into operation a slot machine that is out of technical order or fails to pay out minimum 80% of total payments in winnings (Article 63, paragraphs 1 and 2, and Article 67);

16) puts into use a slot machine without the total-register recording and providing data on all the operations or without installed electronic control device (Article 63, paragraph 3);

17) prevents authorized officials from sealing the motherboard, obtaining records of data on all the operations and conducting other activities (Article 64, paragraph 6);

18) uses a gaming table or gaming device without a clearly visible sticker on them (Article 65, paragraph 1);

19) fails to notify the Competent Authority about every gaming table or every gaming device within the prescribed time (Article 66).

A fine ranging from 10-fold to 20-fold amount of minimum official monthly salary in the Republic shall be also imposed upon the responsible person in the business organization, for the offences referred to in paragraph 1 above.

Article 74 For the offences referred to in Article 72, paragraph 1 and Article 73, paragraph 1, bullets 2, 3, 4, 7, 8, 9, 10, 11, 13, 15, 16, 18 and 19 above, alongside the monetary fine, the property gained through such offence shall be seized and the protective confiscation measure shall be imposed.

Article 75 A fine ranging from 10-fold to 100-fold amount of minimum official monthly salary in the Republic shall be imposed on the legal entity and entrepreneur, if it:

1) organizes a prize-winning competition contrary to Article 69, paragraphs 1 and 2 above;

2) organizes a prize-winning competition without having obtained the approval for the competition rules or contrary to the rules issued with the approval of the Competent Authority (Article 69, paragraph 4);

3) fails to publish the rules in a daily newspaper (Article 69, paragraph 4); 4) fails to sell the prize fund and pay the proceeds from such sale into the Budget of

the Republic (Article 69, paragraph 5). A fine ranging from 1-fold to 10-fold amount of minimum official monthly salary in the Republic shall be also imposed upon the responsible person in the business organization, for the offences referred to in paragraph 1 above.

IX. FINAL AND TRANSITIONAL PROVISIONS

Article 76 Legal entities that were granted the concession for operating games of chance in accordance with the Law on Games of Chance (“Official Gazette of the Republic of Montenegro”, No. 20/95 and 22/95) may continue to operate those games in accordance with the respective concession contract until the expiry of such contract. Legal entities operating the games of chance based on the approval of the Ministry of Finance and competent authority of the local government shall continue to operate gaming for the period of validity of the approval, but no later than a year from the effective date of this Law. Operators of the games of chance referred to in paragraph 2 above shall pay the concession fee in accordance with this Law.

Article 77 The provisions of Article 45, paragraph 4, Article 55 and Article 62, paragraph 4 above shall be applied gradually, according to the program adopted by the Ministry of Finance, within 60 (sixty) days from the day of establishing ON-LINE system with the Competent Authority.

Article 78 Enabling regulations related to this Law shall be adopted within 6 (six) months after the effective date of this Law. Until the adoption of the enabling regulations referred to in paragraph 1 above, the regulations enacted under the Law on Games of Chance (“Official Gazette of the Republic of Montenegro”, No. 20/95 and 22/95) shall apply.

Article 79 Upon the effective date of this Law, the Law on Games of Chance (“Official Gazette of the Republic of Montenegro”, No. 20/95 and 22/95) shall cease to be valid.

Article 80 This Law shall become effective on the 8th day upon its publication in the “Official Gazette of the Republic of Montenegro”. PUBLISHER’S NOTE: The revised text of the Law does not include Articles 32, 33 and 34 of the Law Amending the Law on Games of Chance ("Official Gazette of Montenegro", No. 13/07 of 18 December 2007), which read: "Article 32 Until the establishment of the state administration authority in charge of games of chance, activities of such authority defined by this Law shall be carried out by the Ministry. The state administration authority in charge of games of chance shall be established within 12 (twelve) months from the effective date of this Law. Article 33 Enabling regulations related to this Law shall be passed within the period of 6 (six) months after the effective date of this Law. Article 34 This Law shall become effective on the 8th day upon its publication in the "Official Gazette of Montenegro"." SU-SK No. 01-517/13 Podgorica, 29 November 2007 The Parliament of Montenegro Speaker, Ranko Krivokapić, signed