Over the past few years, the gaming sector has been thriving in CEE. Kinstellar Partner Milan Samardzic, Rowan Legal Partner Milos Olik, ACI Partners Head of Fintech and E-Payments Nicolina Turcan, and Linklaters Warsaw Associate Aleksandra Czubek explore how CEE jurisdictions are driving the industry forward and unlocking new potential.
Rising Gaming Hubs
In recent years, Serbia has positioned itself as “a rising star in the global gaming industry,” Samardzic notes. “The gaming industry in Serbia continues to thrive, showcasing a diverse ecosystem of developers and publishers catering to a wide array of gaming preferences.” Among some prominent players, he highlights Wargaming: “best known for its military strategy franchises, including World of Tanks, World of Warships, and World of Warplanes, Wargaming remains an independent powerhouse focusing on A-list games with immersive military and strategy-based experiences.” Other key industry contributors include TinyBuild, Playrix, Nordeus, and Ubisoft Belgrade.
A similar pattern is present in Poland, where “the Polish gaming market is internationally recognized for producing high-quality games, including titles like The Witcher, Cyberpunk 2077, and This War of Mine,” Czubek points out. “Major players include CD Projekt, 11 Bit Studios, and People Can Fly.”
In the Czech Republic, Olik notes that major players include “Bohemia Interactive (ArmA, DayZ), Warhorse Studios (Kingdom Come: Deliverance, owned by Austria’s Koch Media, part of Embracer Group), 2K Czech (the Mafia series, owned by US-based Take-Two Interactive), SCS Software (Euro Truck Simulator, American Truck Simulator), and Amanita Design (indie games like Samorost, Machinarium),” with some of them focusing on “realistic PC and console games,” while others specialize “in A-list titles, particularly story-driven action-adventure games like Mafia.”
Meanwhile, Turcan highlights that “the Moldovan market is focused predominantly on gambling activities, such as lotteries, sports betting, and slot machines,” with the “gambling market being primarily state-controlled.” According to Turcan, “the establishment and operation of casinos fall outside the scope of the monopoly. Casinos can be operated by private entities, provided they meet strict licensing conditions.” Currently, two partnerships stand out: “Novo Investment MLD S.R.L., which manages the development of slot machine activities, including via electronic communication networks, and NGM Company S.R.L., responsible for the development of lotteries and sports betting, also including electronic communication networks.”
Government Boosts
In terms of the contributing factors, the role of government programs in supporting the sector plays a key role. In Serbia, Samardzic says that “government support has been instrumental in nurturing Serbia’s gaming industry,” with “programs organized by the Serbia Innovation Fund provide grants to tech start-ups, including game developers, enabling them to innovate and scale.” He also draws attention to “the favorable tax regulations – especially R&D benefits for IP – further consolidate Serbia’s position as a country to develop your games in.” Additionally, “local associations such as Digital Serbia Initiative focus on enhancing the country’s digital infrastructure and fostering a conducive environment for technological advancements, further propelling the gaming sector’s growth.”
A similar approach is evident in Poland, where “the Polish government offers initiatives like e.g., GameINN, a program aiming to enhance the competitiveness of the Polish gaming industry on a global scale,” Czubek says. The program “focuses on research, development, and innovation to drive sectoral advancements, providing financial incentives and grants.”
“The primary support ecosystem for gambling companies in Moldova is regulatory in nature,” Turcan also emphasizes. “The Gambling Law, together with secondary legislation such as the Standard Regulation on the Organization of Gambling Activities Through Electronic Communication Networks provides a structured legal framework for the organization and operation of gambling activities. These regulations ensure compliance, transparency, and oversight, creating a predictable environment for operators.” Beyond gambling, Turcan says, “the broader IT sector benefits from favorable tax regimes and support for tech startups, by enhancing the overall tech ecosystem.”
Future developments are also on the horizon in the Czech Republic. “The government will support the gaming ecosystem next year, with funding for educational activities, festivals, and conferences,” Olik says. Industry advocacy plays a key role, with “the Association of Czech Game Developers advocates for industry interests in Europe, while the Czech eSports Association represents gaming clubs and players in public forums.”
Educational Ecosystem
Other macroeconomic factors also play a significant role in shaping the gaming industries in these regions. “Poland’s gaming industry benefits from a robust support ecosystem,” Czubek notes. “This includes educational institutions offering courses in game development, design, and related fields – such as a game development path in the film directing course at the Warsaw Film School, a master’s in computer graphics at the Polish-Japanese Academy of Information Technology, and diploma in interactive media at the University of Silesia, ensuring a steady influx of skilled graduates equipped to enter the industry.” There are also “numerous investment opportunities, as many venture capitalists and investment funds recognize the potential of Polish gaming companies. The gaming community in Poland further supports this environment through meetups, hackathons, and online forums,” she says.
Similarly, the education system in Serbia has been instrumental in fostering its tech and gaming industries. Samardzic explains that “Serbia’s universities (and large tech companies) play a vital role in preparing the next generation of game developers,” with “institutions such as the University of Belgrade’s Faculty of Electrotechnical Engineering, Faculty of Mathematics, and University of Novi Sad’s Faculty of Technical Sciences offering specialized programs in computer science, game design, and interactive media. These programs provide the students with the skills needed to succeed in the competitive gaming industry, ensuring a steady pipeline of skilled professionals.” Additionally, he says, “the Serbian Games Association actively connects local developers through networking opportunities, events, and workshops, fostering a culture of shared knowledge and growth. This community-driven approach has been pivotal in creating a strong foundation for the gaming ecosystem.”
“Moldova benefits from a highly skilled and multilingual IT workforce proficient in advanced technical fields,” Turcan agrees, “making the country an attractive destination for software development and IT services, particularly in areas requiring technical expertise.” Consequently, “the IT sector’s capabilities position Moldova as a potential hub for outsourcing in software development, including contributions to international game development projects.”
Payment Pitfalls
The payment landscape for gaming companies presents both opportunities and challenges across different regions. In Serbia, Samardzic explains that “while these structures provide flexibility, gaming companies face several challenges that can complicate financial planning.” Among these, “revenue-sharing models introduce unpredictability. Payment cycles for platforms like Steam and PlayStation Store are often extended, causing cash flow issues for smaller studios reliant on timely income.” Additionally, “payments made in foreign currencies can be affected by exchange rate volatility, reducing the amount received. However, the local currency remains stable over a mid-term period, thus decreasing this risk. High bank fees for international transfers further erode payment values, creating additional financial strain.” Tax-related complexities add another layer of difficulty, as “cross-border transactions require navigating diverse tax regulations, which can lead to administrative burdens and unexpected costs. For example, the application of value-added tax on digital products varies by jurisdiction, and sales through global platforms often involve complex VAT compliance requirements.”
Turcan notes that Moldova’s payment systems are well-developed and capable of supporting diverse business operations. “Gambling operators are required to integrate their payment systems with Moldovan state online monitoring system, through which the gambling operators transfer tax-related information to the State Tax Authority.” The sector is also subject to stringent anti-money laundering regulations, she notes, and “these rules not only categorize online gambling operators as specific risk entities for financial institutions but also impose direct reporting obligations under Moldova’s AML framework.”
In Poland, the payment landscape also presents challenges, Czubek says, including issues such as “payment security, regulatory compliance, and currency fluctuation management.” Companies have taken proactive measures to address these issues. For instance, “CD Projekt has implemented multi-factor authentication to enhance payment security in their digital distribution service, GOG.com, ensuring safe transactions. Similarly, 11 Bit Studios has integrated flexible payment options to cater to a global audience, allowing transactions in multiple currencies and thereby managing currency fluctuation risks effectively.”
This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
