To understand online gaming legal status and regulations in Bosnia and Herzegovina, you have to understand the political structure of the country first. It consists of two entities, Republika Srpska and the Federation of Bosnia and Herzegovina, and although there is the state government, these entities have their own sets of regulations when it comes to web-based gambling.
Today, citizens of both entities can enjoy games at online casinos, but that was not the case only a few years ago. The Federation of Bosnia and Herzegovina tried to curb online gaming in 2013 by prohibiting players from joining online casinos registered abroad and blocking foreign gambling sites. However, the ban was lifted after the public pressure and the accusations against the Communications Regulatory Agency of Bosnia and Herzegovina (RAK) that it introduced censorship of the internet. The Federation of Bosnia and Herzegovina has not issued any online gaming licences yet.
On the other hand, the government of Republika Srpska has been licensing online casinos since 2011, when the first licence was issued to Williams, a land-based bookmaker and slot club operator which also offers sports betting and casino games on the web. Republika Srpska residents are not prevented from playing real money casino games at foreign gambling sites either.
Online gaming licences in Republika Srpska are issued for a five years period. An online gaming operator has to pay a lump sum of 200,000 KM for a licence and to ensure minimum capital of 1 million KM. A deposit of the same amount at a local bank is required too as a guarantee that all winnings, fees and other liabilities can be paid. All financial transactions including deposits and withdrawals must be processed via banks located in Republika Srpska. An amount of total stakes minus total winnings is subject to a 4% fee while a corporate tax is 10%.