North Macedonian ministers and political parties are preparing for a parliamentary battle over the terms and adoption of a new Gambling Law.

Changes will radically reshape the sector, introducing long restrictions sought by Prime Minister Gordana Siljanovska-Davkova but drawing fierce opposition from industry groups and opposition parties warning of an ‘economic fallout’ for Europe’s youngest economy.

Last year, the newly empowered ‘nationalist coalition’, led by Davkova following her election in 2024, pledged to overhaul the Gambling Act as part of a broader anti-corruption and EU accession strategy. For the nationalist coalition, gambling reform is positioned as both a public health imperative and a political statement on transparency. 

The draft legislation, approved by  the cabinet in July and presented to the National Congress by Deputy Prime Minister Izet Mejhiti, is billed as a decisive step to curb the influence of the so-called “gambling mafia,” protect minors, and tighten market oversight. 

Key provisions include relocating casinos, slot machine clubs, and betting shops with gambling machines at least 500 metres from schools, banning gambling advertising, raising operator taxes and fees, and ending the practice of opening unlimited outlets under a single licence.

Supporters argue the reforms could cut gambling’s physical presence by as much as 70%, reduce youth exposure, and consolidate regulatory control in a market that has expanded steadily for over a decade. 

Of significance to stakeholders, North Macedonia’s gambling sector is the country’s largest private-sector employer and hosts over 1,000 land-based venues—casinos, gaming halls, and sportsbooks — operating under a relatively accessible licensing regime with moderate fees. Between 2018 and 2022, state revenue from gambling rose from around €61m to €88m.

Yet the proposal has triggered a sharp backlash from industry associations, including ASOM and APIS, who warn of severe economic fallout. Critics say the bill embeds loopholes that allow certain betting shops to remain near schools, institutionalises exemptions for favoured operators, and most controversially creates a state monopoly over online gambling – viewed as a direct competition block against licensed businesses.

4H Agency, who have been following the Gambling Law’s progression since its inception, warn caution on proceedings: “This legislation is a double-edged sword. While it addresses legitimate concerns about problem gambling and organised crime, the creation of a state monopoly online risks driving players to unregulated platforms and undoing the law’s intended safeguards. 

North Macedonia’s gambling regime is already one of the most complex in Europe, marked by fragmented authority, overlapping jurisdictions, and deep ethnic and political conflicts.

Industry leaders fear the new law could exacerbate these problems while wiping out over 10,000 direct jobs, jeopardising another 50,000 in supporting industries, and stripping €280m in annual tax revenue from the state budget.

The 4H Agency further cautioned: “Without a proper transition plan for affected workers and a robust enforcement framework, the law may inflict economic damage without delivering the promised social protections.”

Stakeholders have condemned what they describe as a rushed process with no formal public consultation or economic impact study. “This is not regulation; this is consolidation of control into the hands of a few,” ASOM said in a statement, calling for a full stakeholder review before the bill advances. 

Observers warn that beyond the immediate compliance burden, the government will face a test of its ability to both enforce the new regime and safeguard state revenues.

In 2024 the previous parliament passed amendments to the Gambling Act, only for then-President Stevo Pendarovski to refuse his signature, demanding revisions. Now the balance of power has shifted, and the Davkova government has the political capital to push the changes through — though not without a fight.

If enacted in its present form, the legislation would mark the most radical restructuring of the country’s gambling sector in decades. It would also test whether the government can navigate the trade-offs between social policy, fiscal prudence and the realities of criminal enforcement in one of the Balkans’ most politically fragmented states.