Croatia Increases Gambling Funds for Social Programs to €214 Million

Croatia has decided to substantially increase the allocation of gambling revenues to social programs. This move comes amidst comprehensive reforms and a heightened focus on combating problem gambling in the country. The government aims to use these additional funds to specifically support civic and public-interest initiatives.

This decision highlights a growing trend towards greater social responsibility within the gambling sector. Notably, Croatian authorities are prioritizing the needs of public institutions and civil society groups to improve the quality of life across the country.

Numbers and facts

Croatia will direct €214 million from gambling revenue to social programs this year. This marks a substantial increase from approximately €130 million allocated in the previous cycle. Chief State Treasurer Danijela Stepić confirmed that her office has been authorized to manage the distribution of these funds. The total amount comprises €144 million from projected gambling receipts and an additional €70 million carried over from unspent funds in 2025.

This allocation is made under the annual "Regulation on the Criteria for the Distribution of Revenues from Games of Chance." The funds are designated for public-interest initiatives, including sport, culture, technical education, addiction prevention and treatment, and social and humanitarian services. The funding targets civil society needs, supporting organizations working with people with disabilities and non-institutional education for children and young people.

“Analyses of priority sectoral problems.” - Danijela Stepić, Chief State Treasurer

This quote from Danijela Stepić underscores the government's data-driven approach to fund allocation. Public health authorities estimate that around 40,000 adults in Croatia suffer from severe gambling disorders. Consequently, the government has also implemented comprehensive reforms to address this issue.

Background

The increased allocation follows a broader regulatory overhaul implemented under Prime Minister Andrej Plenković and the HDZ government. After securing a third consecutive term in 2024, the cabinet accelerated amendments to the Games of Chance Act. The primary goal was to tackle a growing gambling addiction crisis. Initial measures included banning self-service gambling terminals in cafés, bars, kiosks, and restaurants. Betting shops were also prohibited from serving alcohol.

Subsequently, the state increased license fees for online and land-based operators by 50 percent. A tiered tax on player winnings, ranging from 10 percent to 30 percent, was introduced. In November, the government added a self-exclusion registry, which all operators were required to integrate by January 1, 2026. The Registar Igrača system is managed by the Croatian Institute of Public Health (HZJZ). These measures clearly prioritize player protection and problem gambling prevention. It is a remarkable step how strongly Croatia focuses on youth protection and addiction prevention.

In addition to these national efforts, operators from seven Balkan countries, including Croatia, have formed the Balkan Gaming Federation (BGF). Their objective is to consolidate the industry and foster better dialogue with governments to promote balanced regulation and combat the illegal market. The BGF criticizes that many regulatory measures do not sufficiently consider the specific impacts on the legal market, potentially leading to “excessively restrictive” regulation.

Why it matters for German players

German players operate within a clearly regulated environment. Since the Gambling State Treaty 2021 (GlüStV 2021), a specific legal framework exists in Germany. Online gambling is only permitted with providers holding a German license from the Joint Gambling Authority of the Federal States (GGL). These casinos are listed on the so-called GGL whitelist. All providers on this list are subject to strict rules on player protection and addiction prevention.

These regulations include a monthly deposit limit of €1,000, monitored by the central LUGAS system, and a stake limit of €1 per spin for online slot machines. There is also a 5-second pause between spins and an immediate self-exclusion button. These German protective mechanisms are considered comprehensive and are designed to effectively prevent problem gambling. Offers from casinos with licenses from Malta (MGA) or Curaçao remain in a legal gray area for German players, as German authorities only recognize GGL licenses as compliant. The Croatian measures in many respects resemble the German regulations, particularly regarding player protection and the establishment of a self-exclusion registry.

What it means for GGL-licensed casinos

The developments in Croatia reflect an international trend: governments are recognizing the need to redirect gambling revenues into social programs while simultaneously enhancing player protection. For GGL-licensed casinos in Germany, this implies that similar models could be considered or even expanded upon here. Currently, gambling tax revenues collected from licensed providers in Germany flow into state budgets, where they are used for social projects and addiction prevention, among other things.

The transparency and specific earmarking of funds, as Croatia is now doing with the increase to €214 million, could also spark discussions in Germany. Clearer communication about how gambling revenues benefit society could further strengthen the acceptance of the regulated market. For GGL operators, this means continuing their efforts towards responsible gambling and maintaining the highest standards in player protection. Only by doing so can player and public trust be preserved and the legitimacy of the regulated market solidified.