REPUBLIC OF ALBANIA
THE ASSEMBLY
LAW
No. 8701, dated December 1, 2000
On Games on chance, casinos and hippodromes
In reliance on articles 78 and 83, point 1of the Constitution, on the
proposal of the Council of the Ministers
THE ASSEMBLY
OF THE REPUBLIC OF ALBANIA
DECIDED:
Article 1
Purpose
The purpose of this law is to define regulations on the manner of developing
the games on chance, casino games and betting sets on games (races)
developed in hippodromes, as well as licensing of the organisers.
Article 2
Games on chance
Definition
1. Games on chance are defined such games, in which the participants
pay a certain sum and the fortune factor influences directly both in winning
and loss of the participants in any such game.
2. There shall not be defined games on chance:
- Competitions developed on the basis of knowledge of participants,
whereby the winner is awarded a certain prize set for such purpose.
- Payments made by life insurance institutions or other types of
insurance through draws held for tickets issued for such purpose.
Article 3
Games on chance
Categories
For the purpose of this law, games on chance are classified in
categories as follows:
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1. Arithmetical Games are such games in which gamblers (participants),
out of a matrix of numbers included in the tickets, selects on his choice, a
quantity of defined numbers. Participants in such games win in case the
numbers selected by such participants match to the numbers of public draw
held on such games. Such category shall include the following games:
-
Abrogated
Abrogated
- Bingo: A gambling game, where by random drawing come out as
many numbers as are needed to have a winning ticket. The gamblers buy
tickets, which include a group of numbers, composing part of defined group of
numbers.
- Abrogated
- Abrogated:
2. Lottery on sports games are defined such games, the results of
which depend on the accurate prediction of the scores of such competition or
any such sports events. Gamblers prediction is included in the tickets (cards)
spread out for that purpose by the organiser of such game.
The following games are classified in such category:
Competition on sports events prediction (forecasting) of football
matches or other sports events, by which the participants in the
game should exactly predict the scores of such matches included
in a ticket issued for such purpose.
- Bets by which the score of any kind of game is predicted,
collectively or individually, as well as sports events, the nature of
which, makes betting possible. Scores of such bets are determined
or they are variable. Fixed scores are such that the organiser of
such games determines at prior decision and announces such
scores to the gamblers prior betting commencement. Variables are
such scores depending on the amount collected on various
alternatives of one or more games or sports events on the basis of
such, predicting is developed and determined after the expiry
deadline of handing the cards (tickets) on the concerned
predicting.
For the purpose of this law, reciprocal forecast on horse race games
described or not under article 21 of this law, sports games categories
are exempted, and such sports games are developed under the
provisions of article 23 of this law.
3. Lotteries are such probability games, by means of such the
organiser offers the ticket purchaser the chance to win a certain described
amount, if his ticket corresponds to the winning number or a combination of
numbers or symbols of the ticket issued by the organiser for that purpose.
Lotteries are classified as follow:
-
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

Lottery for which numbers are drawn. Such games whereby the
participants try to become the winners of a certain amount, if the public
draw for this purpose proclaims the selected ticket the winner,
instant lottery games. These are described such games where the ticket
purchaser is offered the possibility of scratching – off and uncovering the
ticket number, within deadline describing the validity of tickets issued.
4. Instant electronic games are such games which are developed by
means of electronic computers or electronic machines, located by the
organiser at certain places, and through such, the gambler, by paying a
specified amount becomes the winner of a certain amount, which he takes
either directly from the machine or in a manner priory defined.
Article 4
For reviewing the requests on licensing and supervising of the games
of chance, under the authority of the Minister of Finance, is established
the Committee on games of chance. Responsibilities, organisation,
manner and legal form of such a Committee are stipulated by the decision
of Council of Ministers.
Article 5
Personnel nomination
Nomination of personnel of the Committee on games on chance is under the
authority of the Minister of Finance, who also approves the number of
employees.
Article 6
Licence and the organiser
1. On the proposal of the Committee on games on chance, the Minister
of Finance issues licences on the establishment of games on chance. Such
licence is valid for a 10 years period.
In order to receive a licence on establishing games on chance, under
the provisions of this law, the organiser shall pay a sum of 10 millions Leks,
for any of such games on chance, as follows:
- Arithmetical lottery
- Lotteries
- Sports games
- Electronic games
Criteria on issuing licence on games on chance are defined by the Decision of
Council Ministers.
2. The organiser supplied with licence, in accordance with the provisions
provided by this law, exercises the activity on games on chance in all the
territory of the Republic of Albania.
3. The permission for exercising activities on games on chance may also be
issued by Local Governments, upon prior approval by the Minister of Finance,
for juridical persons, with the purpose of financing charitable and humanitarian
activities. Such licenses are solely issued for lottery establishment that should
be developed at a certain place and at a limited time, and should be
connected with specified situations or events. The distribution of income on
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lotteries provided for under the provisions of this paragraph, are defined by
decision of the Council of Ministers.
4. The organiser’s licence shall explicitly define that such organiser is liable to
overall expenses necessary for establishment, supervision and functioning of
games on chance that such organiser exercises.
5. The Committee on Games on chance proposes tickets standards used by
the organiser, and such standards are approved by a special act of the
Minister of the Finance.
6. Ministry of Finance shall take measures on emitting tickets in accordance to
a proper scheme, as well as distribution and supervision of such tickets in
use.
Article 7
Obligations of the organiser
Licence for establishment and functioning of games on chance is issued
solely to any commercial company provided that it meets the following
conditions:
- It is an anonymous company, with domestic, foreign or joint capital
having a P.E on the territory of Republic of Albania.
- It declares the founders of such company.
- It declares its manager(s) and its chief personnel.
- It has a prior agreement with one of the banks with a P.E on the
territory of the Republic of Albania for encashment, depositing and
payment transfers.
- It is supplied with proper technology for functioning of the support
system of games on chance, under the meteorological
characteristics defined in the law.
- It has trained personnel with proper qualification and experience
for developing games on chance.
- It guarantees sum payments to the winners of games on chance.
The manner, form and warranty sums are defined in the licence
issued to the organisers, in accordance with the provisions of this
law.
- It accepts to submit any documentation or data for auditing and
supervision purposes, requested by the Committee on Games on
Chance.
Article 8
Licence revoking
The licence issued to the organiser of games on chance, in accordance
with the requirements provided for in this law, may be revoked by the Minister
of Finance, mainly or on proposal of the Committee on Games on Chance, in
case such organiser fails to meet the provisions of this law, as well as other
legal acts (regulations), dealing with (concerning) such activity. Licence is
revoked, especially in such cases where the organiser fails to fulfil regularly,
and within deadlines described, the liabilities to State Budget, to Committee
on Games on Chance, to winners and to auditing and supervision bodies, as
well as fails to make official announcement on drawings held, which ought to
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be carried out in the presence of commissions, and a representative of
Committee on Games on Chance.
Article 9
Tax on the organiser
Profits arising from the activities exercised by the organiser of games on
chance are taxable under the legal provisions in effect.
Article 10
Tax liabilities
1. Profit tax of the company (organizer)is assessed and payable in
accordance with the provisions of the law no. 8438, dated 25/12/1998
“On Income Tax”, amended.
2. Income earned by players (winners) that participate in the games of
chance and casinos are exempted from income tax.
3. Activities exercised in games of chance that are taxed under the
provisions of this are VAT exempt.
4. Tax liabilities are:
a) For arithmetical game:
“i) The organizer of a bingo game that is exercised for participants in
a hall shall pay a tax at a fixed quota, per hall, on monthly basis,
respectively 500.000 lek for first category districts, 400.000 leks for
second category districts and 300.00 leks for third category”
districts”
“ii) Organizer of a bingo game that is exercised for participants in a
hall is subject to 20% tax on turnover realised on the basis of
encashment from tickets sales. Organizer, on any game, is
requested to provide the participants with not less than 50 % of the
amount collected in the form of profit.
b) for sports games;
“i. Organizer of competitions on sports events prediction
(forecasting) is subject to 20% tax on turnover realised on the basis
of encashment from tickets sales.
Organizer, on any game, is requested to provide the participants
with not less than 50 % of the amount collected in the form of profit.
“ii. The organizer of sports bets shall pay a tax at a fixed quota as
follows:
- 1.000.000 for the company on monthly basis;
- 40.000 lek per bet sales point for first category districts;
- 30.000 leks per bet sales point for second category districts;
- 20.000 leks per bet sales point for third category districts;
Organizer, on any game, is requested to distribute to the
participants not less than 50 % of the amount collected in the form
of profit.
c) on electronic games of instant winning
organizer of electronic games on instant winning is subject tax on
games on chance at a fixed quota, on monthly basis, as follows:
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- 1.000.000 for the company on monthly basis;
- 30.000 lek per computer, as well as 40.000 on any position of
electronic machine on any game for first category districts, on
monthly basis
- 20.000 leks per computer as well 30.000 leks on any position of
electronic machine on any game for second category districts, on
monthly basis
- 14.000 leks per computer, as well as 20.000 lek on any position of
electronic machine on any game for third category districts, on
monthly basis.
Organizer, on any game, is requested to distribute to the
participants not less than 50 % of the amount collected in the form
of profit
ç) On games on chance-lottery game category
Organizer of instant lottery game for which a draw is held is subject
to 20 % tax of turnover realized on the basis of encashment from
tickets sales. Organizer, on any game, is requested to distribute to
the participants not less than 50 % of the amount collected in the
form of profit. In the cases when the amounts at the disposal of the
players of such game is not distributed to winners, then such
amount is requested to be distributed in the forthcoming lottery
game.
5. For the purpose of provisions of letters “a”, “b”, “c” and “ç” of
this article, first category districts include Tirana and Durres,
second category include Shkodra, Korca, Vlora, Saranda,
Gjirokastra, Elbasani, Fieri, Lushnja, Pogradeci, Berati, Lezha and
Kavaja and third category districts include all the remaining
districts.
6. Tax liabilities on games on chance, as a percentage or in fixed
amounts, shall be payable no later than the 10-th date of each
month on the activity exercised in the previous month at the Local
Tax Offices where the company (organizer) is registered.
Article 11
Licence renewal
1. On the proposal of Committee on Games on Chance, Minister of Finance,
renews licence, for a 5-year period, under the same conditions. Payment on
licence renewal, under this paragraph, is half of the sum described by article 6
of this law.
2. Organiser of games on chance shall file a request to the Committee on
Games on Chance for licence renewal, at least six months before the expiry
date of the existing licence.
Article 12
The Committee on Games on Chance also exercises the function of requests
examination on licensing by the Minister of Finance and Minister of Public
Order, on exercising activities on Casino and Hippodrome games.
Article 13
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Casino games
1. Licence on exercising activities on Casino games is issued to the organiser,
in accordance with the provision of this law, for a 15-years period.
2. The Council of Ministers, on a special decision, defines the zones where
casino games may be established. Minister of Finance and Minister of Public
Order, on the proposal of Committee on Games on chance, determine the
number of casinos that may operate in such defined zones prescribed by this
article. In any case, the licensed organiser, shall not establish more than one
casino, in any such zones, under the provision of this law.
3. Organiser liabilities and the conditions to be met for exercising the
activity are stipulated in the licence issued for such purpose.
4. All the expenses for casino establishment and functioning shall be
borne by the organiser.
5. Organiser may place instant electronic games in casino premises.
Establishment conditions and the quantity are defined in the licence issued.
Liabilities on such games are the same with such defined for other organisers
to such games, the purpose of which is exercising activities on instant
electronic games.
6. Regulations on casino functioning, with regard to the conditions
being fulfilled by gamblers in the game, casino time-table, the games
exercised in it, as well as overall casino organisation, are approved by the
Minister of Finance, upon licence issue.
Article 14
Casino personnel
1. Casino personnel, shall be at last above 21 years of age, with complete
juridical capacity to act, should not be a penal convicted person.
2. The organiser in co-operation with the Committee on Games on Chance
and the Ministry of Public Order stipulate casino security manner and control
on gamblers in the game upon gamblers entering casino hall.
3. Organiser, himself or in co-operation with public order body where such
casino is operating, takes preliminary measures for not permitting under 18
years old persons enter casino premises.
4. Organiser shall submit to Committee on Games on Chance and other
authorised persons by the Minister of Finance and to technical control body,
any documentation or data requested by the latter, to exercise control and
supervise the activity.
Article 15
Casino Organiser
1. License on exercising casino activities, is issued to a commercial company,
meeting the following conditions:
- It has the status of an anonymous company, of domestic capital,
foreign-capital, or joint capital, having a P.E in the territory of the Republic of
Albania.
- Its object of the activity is organising of Casino games.
- It has in management body qualified persons possessing professional
knowledge on casino functioning.
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- The stock capital of the company shall not be less than 30 million
leks, and not more than one tenth value of such stock capital shall be fixed
capital.
- It ensures at any moment any sum payment to the gamblers in casino
games.
- It declares company founders.
- It declares company managers and its chief personnel.
2. The manner, form, and specific criteria on organisers selection, as
well as the warranty amount and criteria, described in point one (1), paragraph
5 of this article, are stipulated by the decision of the Council of Ministers.
Article 16
Licence revocation
Ministry of Finance, mainly or on proposal of Committee on Games on
Chance, may revoke the licence issued on casino if observing violations to the
provisions of this law, to the conditions defined in the license, as well as to
other legal acts, dealing with the activity of the taxpayers, and especially if tax
liabilities and fees described are not paid, to the State Budget, to the
Committee on Games on Chance and to the winners within the deadlines.
Article 17
1. In case games on chance, developed in casino, violate or run contrary to
common interest, Ministry of Finance, mainly or on proposal of, Committee on
Games on Chance, cancels (revokes) the licence on developing such or
interrupts the activity without prior notification of the procedures on issuing the
licence.
2. Cases, where common interest is violated, under the provisions of
paragraph one of this article, are:
 Public fraud,
 Money laundering,
 Violation of public order and promotion of criminality.
Article 18
The licence to develop casino games is issued to the organiser, only if, in
addition to the requirements under the provisions of article 14 of this law,
meets the following conditions:
 Games shall be developed in halls prior defined for such purpose.
 Equipment of up-to-date standards shall be in use, in accordance with the
technical characteristics described by law for all types of games.
 Proper personnel, possessing professional skills on such field shall be
employed.
 Premises security, inside and outside the hall where such games are
developed, shall have the approval of Minister of Public Order.
Article 19
The organiser shall be issued the licence for developing casino games, only
upon payment of 30 million leks for any such casino, a sum which is paid only
once, upon licence issue.
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Article 20
The organiser shall not be allowed to establish (set up) a branch, or subsidiary
of the company, in the country or abroad, without prior approval of the request
by the Minister of Finance. To have the approval, he shall prior submit a
request to the Committee on Games on Chance, which is considered by such
Committee and is submitted for approval to the Minister of Finance.
Article 21
Regulations on Casino games
1. Organiser drafts regulation on each casino game. Such draft is made
known to the gamblers participating in any such game.
2. Game regulations shall mainly include:
 Regulations on the participation manner in the game and
determining the maximum and the minimum sum, which is paid on
any such game.
 Requirements for allowing persons entering the casino building.
 Working hours (Time-table) of casino.
3. Minister of Finance approves the regulation, on the proposal of the
Committee on Games on Chance, upon draft reviewing submitted by
the organiser.
Article 22
Tax liability on casinos
1. Profit tax of the company (organizer) is assessed and payable in
accordance with the provisions of the law no. 8438, dated 25/12/1998 “On
Income Tax”, amended.
2. Income earned by players (winners) that participate in the games of
chance and casinos are exempted from income tax.
3. Activities exercised in games of chance that are taxed under the
provisions of this are VAT exempt.
4. Taxpayers exercising their activities in games on chance in casino are
subject to the following liabilities:
a) on any table of game of chance, roulette, an amount of
800.000 leks on monthly basis;
b) on any table of games of playing cards and an amount of
800.000 leks on monthly basis;
c) on electronic games and slot machines on instant winning
established in the premises of a casino an amount 60.000
leks per month on any electronic computer. For electronic
machine supplied with more than one positions, an amount
of 80.000 leks on any position, on monthly basis.
ç) on electronic machine supplied with more than one positions
20.000 per position on monthly basis;
d) to the municipality where casino exercises the activity is
transferred an amount of 2% of the amounts collected under the
provisions of letters “a”, “b”, “c”, “ç” and “d” of item 4 of this article
Article 23
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Hippodrome
1. To the organiser, filing a request to exercise an activity regarding
sports games developed in hippodrome, the licence is issued for a 15-years
period by the bodies, defined under the provision of article 11 of this law.
2. The organiser, receiving a licence on horse-race betting, or other
races developed in hippodrome, herein after referred to as “race”, shall pay to
state a sum amounting to 20 millions leks, which is paid only once, upon
licence issue.
3. Organiser provided with a licence on games on chance, established
for the reason of the races developed in hippodromes, shall be given the right
of constructing a stadium for the races. The concerning permissions for
stadium construction have to be ensured by the organiser in accordance with
legal provisions in effect. In case of failure to get the permission for
hippodrome construction, within a one-year period upon licence issued on
developing the games, the organiser is invalidated the licence issued for such
purpose, as well as is given the right to be paid back the sum, under the
provisions of paragraph 2 of this article, provided that permission is refused
for reason not depending on the organiser.
4. The specific conditions of hippodrome functioning, requirements of
gamblers participation, time-table of developing races for every week, types of
bets, as well as of betting for every game, are stipulated by the game
regulation, which is approved by the Minister of Finance upon licence issue.
5. Entering the hippodrome is also permitted to under 18 years-old
people, provided they are accompanied by their parents or legal protector.
6. The organiser is allowed to establish instant profit electronic games
in hippodrome premises. Establishment requirements and their numbers is
stipulated in the licence issued. Liability on the income realised on such
games is the same, defined for other organisers on instant profit electronic
games. The licence permits the organiser to establish games on chance on
predicting the results of the races developed in hippodromes, as well as ticket
selling desks, outside hippodrome.
7. Organiser shall inform participants in the game, by means of direct
transmitting the races, through information electronic media, as well as to
publicise the score (results) of such races (games) in such electronic media,
by means of newspapers in circulation in all the territory of Republic of
Albania, in all ticket selling desks (shops) or other places, serving the purpose
of informing the gamblers in the game.
Article 24
1. Licence, on exercising activities for betting on races (games) developed in
hippodromes, is issued to a commercial company meeting the following
conditions:
 To be an anonymous company, with domestic, foreign or joint
capital, and to have a P.E in the territory of Republic of Albania, as
well.
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
The object of the activity shall be the functioning and support of
bettings on races developed in hippodrome.
 Its management bodies shall have qualified persons on horseracing activities.
 Stock capital of the company shall not be less than 30 mill.leks, and
capital in kind shall not exceed 1/10 of such amount.
 To guarantee (warrant) in any times award sum payments to the
gamblers in bets on races developed in hippodrome.
 To declare its company founders.
 To declare company managers and its chief personnel.
2. The manner, form and criteria for the selection of the organiser, as well as
warranty amount and conditions, described under paragraph 1 and 5 of this
article, are stipulated by decision of the Council of Ministers.
Article 25
Tax liabilities on hippodromes
1 Profit tax of the company (organizer) is assessed and payable in
accordance with the provisions of the law no. 8438, dated 25/12/1998
“On Income Tax”, amended.
2 Income earned by players or winners that participate in the games of
chance and casinos are exempted from income tax.
3 Activities exercised in hippodromes that are taxed under the provisions
of this law are VAT exempt.
4 Taxpayers that exercise their activities in the field of of organizing
games of chance in hippodromes pay their tax liabilities as follows:
a) A tax on games of chance at a fixed amount, on monthly
basis of 2.000.000 leks for the company;
b) A tax on games of chance at a fixed amount, on monthly
basis of 40.000 leks for any point of bet sales;
c) on electronic games and slot machines on instant winning
established in the premises of a casino an amount 40.000
leks per month on any electronic computer or for electronic
machine supplied with more than one positions.
ç) ) to the municipality where casino exercises the activity is
transferred an amount of 2% of the amounts collected under
the provisions of letters “a”, “b”, “c”, “ç” and “d” of item 4 of
this article
Article 26
Licence revocation
Ministry of Finance, mainly or on proposal of Committee on Games on
Chance, may revoke the licence issued on casino if observing violations to the
provisions of this law, to the conditions defined in the license, as well as to
other legal acts, dealing with activity of the taxpayers, and especially if tax
liabilities and fees are not paid within the deadlines described, to the State
Budget, to the Committee on Games on Chance and to the winners.
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Article 27
Sanctions
Exercising of activities, described under the provisions of law, without
licence, is fined as follows:
 on arithmetical lotteries
40 mill. Leks
 on lottery games
40 mill. Leks
 lotteries on sports games on chance 40 mill. Leks
 on electronic machine games
500.000 leks (per machine)
 on casino games
40 mill. Leks
 on betting on races in hippodrome 60 mill. Leks
2. Violations of the provisions of this law, by the organiser of games on
chance, casino games and games of hippodrome, if not constituting criminal
offences, are considered administrative violations and are fined up to 1 million
Leks.
3. The procedures for appeal for sanctions to such persons, under this law,
is done in accordance with the legal provisions in effect.
Article 27/1
Sanctions with regard to taxes
1. Failure to declare and pay an amount of tax liability, in case it
does not constitute a penal act, is regarded as an administrative
violation and is fined at 50 % of due tax amount.
2. Failure to pay in defined time of tax dues on games of chance,
casinos and hippodromes is regarded as administrative violation
and is fined at 10 % of the amount paid not on time.
3. In addition to the above sanctions, for failure to pay on time tax
dues taxpayer is also liable to interest late payment, in
accordance with provisions of the law no.8560, dated 22/12/1999
“On tax Procedures in the Republic of Albania, amended.
Article 28
1. Random draw on any game is transmitted directly by the organiser by
means of electronic information media covering the whole territory of Republic
of Albania, for such games on chance, provided in for by this law, where by
persons participating in the game by purchasing ticket, and provided that the
game is not developed for participants within the halls or for such, whereby
profit (award) is not on instant games.
2. Organiser shall inform the participants in the game its conclusion,
such game shall declare the winners of any such game category by means of
media, with full coverage and circulation all over the territory of the Republic of
Albania.
3. Incurred expenses on publicising, under the specification of
paragraphs 1 and 2 of this law, are borne by such organiser.
Article 29
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Final provisions
The Council of Ministers is charged with issuing regulations for
implementation of articles 4, 10, 13, 15, 22, 24 and 25 of this law.
Article 30
Annual renewal on existing licences, upon entry into effect of this law,
is made in accordance with criteria provided under this law.
Article 31
Law no. 7871 dated no. 9, 1994 “On games on chance and casinos” as
well as any other provisions that run contrary with provisions of this law, are
repealed.
Article 32
This law becomes effective 15 days after publication in Official
Newspaper.
Note: This law is updated including the amendments and changes made
by law no.9459, dated 21/12/2005
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