The Romanian government has taken a huge step in opening the doors towards a more operator-friendly online gambling environment. Before 2014 ended, the government issued an ordinance that officially regulated the country’s online gambling industry.
According to Odette Nestor, the president of the National Office for Gambling: “Through this ordinance, the government has managed to regulate the online gambling sector, which was regulated in 2010 but not completely. We now have a legal framework that allows gambling operators to get licensed in Romania, and through this licensing, we will protect minors and Romanian players.”
Ordinance GEO 92/2014 raises gambling license fees from the old amount of RON 400,000 to EUR 100,000 and the introduction of a type of temporary gambling license to operators who may want to offer their games in tourist areas. These licenses will carry a life span of three months with a possible extension of up to six months.
A new three-tiered tax on gambling will replace the universal 25% tax applied to player winnings, beginning with a 1% tax applied to all players who win anywhere between €133 and €15,000. That rises to 16% on revenues between €15,000 and €100,000, and 25% tax on revenues exceeding €100,000.
The ordinance also allows gambling operators from companies based in the European Union to obtain licenses and offer gambling services to Romanian players. The government hopes to earn extra tax revenues and help secure a stronger framework to address issues like underage gambling and compulsive gambling.
The country’s about-face on the issue was a long time coming as it had faced tremendous pressure from the European Commission regarding its previous regulatory system, which the Commission deemed incompatible with free trade treaties.The new system and implementation norms will begin within 45 days of Dec. 30, 2014.
