Vezuv Director of Legal Affairs Filip Knezevic talks about his career and the challenges of navigating the regulator’s relationship with the gambling sector.
CEELM: Tell us a bit about yourself and your career path leading up to your current role.
Knezevic: My legal career began 15-16 years ago, and I was fortunate to work for companies that were part of larger groups, whose activities were very diverse. I started in media, at a local television station, where I worked for a year. Then I moved to the investment arm of the same group, which was active in banking, education, and real estate development. This allowed me to gain extensive experience in legal work in these sectors.
Later, I transitioned to a UAE-based real estate investment company that acquired The Capital Plaza in Montenegro, where the first Hard Rock Cafe in the region opened under their management, and such a huge international franchise implied highly regulated operations and strict legal procedures. This involved a lot of international activities, and I spent a decade there. However, I felt I had reached the limit of professional growth in that position and decided to take on a new challenge. That’s when I joined the Vezuv group, primarily operating in the gambling industry, but also involved in hospitality and real estate development.
Our group operates in three markets – Montenegro, Serbia, and Bosnia and Herzegovina – employing around 1,100 people, most of whom are based in Montenegro, where we dominate the gambling market, covering close to 60% of it. The work is highly dynamic, and I’ve been able to apply my diverse legal and business experience.
CEELM: How is working in-house different from that of a private practice lawyer in your view?
Knezevic: Throughout my career, I’ve had ad hoc engagements with different companies and projects, including litigation for the companies where I worked in-house. This gave me some perspective on the differences between external lawyers with in-house roles.
As an external lawyer, your engagement is often limited to a specific part of a project. But as an in-house counsel, you are involved from the very start all the way to the end result. For example, in real estate projects, you oversee the entire lifecycle – from securing building permits and managing design to construction and final approvals. There’s a deep satisfaction in seeing a tangible outcome that you’ve contributed to legally.
A standout example is The Capital Plaza project. It took 10 years to develop, and while it faced many challenges and initial skepticism, it ultimately became a thriving hub. Being part of such a journey and seeing it “shine” is incredibly rewarding.
CEELM: How large is your in-house team currently, and how is it structured?
Knezevic: In Montenegro, where our core operations are based, we have five in-house lawyers, including myself. Three of us handle everything from advisory work to administrative tasks. One lawyer is dedicated to real estate development, and another focuses on hospitality, such as our five-star hotel Porto Palace in Tivat, adjacent to Porto Montenegro.
In Bosnia, we have two lawyers, whilst, in Serbia, we are currently relying on external legal offices as we are just starting our operations there.
CEELM: How do you decide whether to outsource a project or use internal resources?
Knezevic: In the gambling industry, there are very few external lawyers specialized in gaming-related cases. As a result, 90% of our legal matters and disputes are handled in-house. When it comes to outsourcing, we evaluate it on a case-by-case basis. If a project involves expanding into new territory, mergers and acquisitions, or similar projects that require thorough due diligence, we prefer to work with external lawyers from that market as local expertise is crucial.
For complex matters requiring significant resources, we often outsource to avoid overloading our in-house team, allowing them to focus on regular operations.
CEELM: What criteria do you use when selecting external counsel?
Knezevic: Prior experience in specific matters is the primary criterion. For instance, if it’s a labor-related issue, we prioritize firms with extensive courtroom experience. The client portfolio of a law office is also an important consideration, as it reflects their quality and reputation.
CEELM: What has been keeping you and your in-house team busy over the last 12 months? What about the upcoming 12 months?
Knezevic: Over the past 12 months, our focus has been on territorial expansion. We launched operations in Serbia, which required significant legal work. We’re also exploring a potential expansion into another market, though it’s still just an idea at this stage.
Additionally, we successfully converted a completed building on the coast into a five-star hotel – a challenging process that we completed in April 2024. Establishing a business of this scale required significant legal effort to secure all the necessary permits.
Another major focus has been the proposed changes to the Lex Specialis gambling law. The process was initially non-transparent, sparking intense public debate. The proposed changes were significant and primarily aimed at increasing tax revenues from the gambling industry. We, along with other operators in Montenegro, had to engage heavily, submitting formal objections and suggestions. Unfortunately, the authorities don’t understand the industry as we do. 14-15 major operators united to highlight how some provisions were impractical and would negatively impact the sector. We’re now awaiting the outcome of the public debate.
Looking ahead, we plan to develop a large business-residential complex in Podgorica, which is currently in the design phase. Expanding our presence and operations in Serbia will also require considerable legal and strategic efforts, especially since we also expect new gambling legislation to be introduced and implemented in Serbia in the first quarter of 2025. Additionally, we’ll continue to monitor and address regulatory changes in Montenegro, including new winnings tax calculation requirements that are proving tricky for operators.
CEELM: What do you foresee as the main challenges for GCs in Montenegro in the near and mid-term future?
Knezevic: Montenegro has faced significant political instability in recent years, with three governments since 2020. Each new administration brings different priorities, laws, and approaches. This constant flux creates confusion, particularly with frequent changes in legislation and administrative procedures. For example, ministries have fluctuated in number, adding to the complexity.
As Montenegro progresses toward EU accession, we’re seeing an influx of regulations. However, many of these are directly transposed from EU laws and aren’t always compatible with our local context. This creates practical challenges for implementation.
Another issue is the slow digitalization of government administration. While technological improvements are introduced, they often fail to be implemented effectively, creating bottlenecks for both commercial and private sectors.
Finally, the gambling industry continues to face stigma, with many focusing solely on its social aspects. Despite being heavily regulated and a significant contributor to state revenues, there’s a lot of hypocrisy in how the government addresses it publicly. This lack of understanding and appreciation for this sector’s value is a persistent frustration for operators in the space.
This article was originally published in Issue 11.12 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
