As we entered the final stages of August, an unprecedented move by the Romanian government led to the launch of a draft legislative proposal. This proposal was anticipated to bring about a series of significant transformations to the gambling system in the country.
The essence of the proposed changes is to resolve the progressively expanding budget deficit experienced by the nation, which presently stands at 2.33% of the Gross Domestic Product. Forecasts indicate that this deficit might escalate to 6.4% by the end of this year. The amendments also aim to reinforce measures to tackle tax evasion, to enhance the regulatory framework governing gambling and to curb illicit gambling activities proliferating in the black market.
Subsequently, the Senate approved a preliminary version of a bill that lays out a more rigorous set of operational norms for Romanian gambling and betting outlets. Let’s dissect the proposed changes.
Gambling Seats Reduction, Relocation Away From City Centers & Revision in Licensing Terms
As per the new legislation initiated by a group of parliamentarians from the PSD party, revisions were proposed in the OUG 77/2009. The bill suggests that licenses for shops conducting lawful gambling and betting operations within Romania should be granted based on the population proportion.
Specifically, it would be required from local authorities to issue a single license for every 20,000 inhabitants. In towns with populations below 5,000, no licensing permissions would be granted.
The amendments would be broad, impacting all sportsbooks, casinos, and outlets operating slot machines. Exceptions being lottery organizations vending their own offerings.
In addition, the new regulations would limit operators to provide only 20 gambling slot machines for each unit compared to the current allowance of 75. Simultaneously, these gambling and betting outlets would no longer be permitted in city centres. Rather, they would be moved to zones within a 50-meter (164 feet) radius from the city limits.
Further restrictions command that these outlets would be prohibited from operating within 300 meters (984 feet) radius or less, of facilities designated for religious services, cultural gatherings, schools, university campuses, children’s playgrounds, and other educational sites.
Severe Penalties for Permitting Underage Gambling
Any gambling operators found guilty of allowing minors (under 18) to access their premises will be subject to a fine ranging between RON 10,000 and RON 200,000 ($2,164-$43,294) for this infringement.
Committing the same offense for the second time would lead to a suspension of the license for a period of six months. Reoccurring instances, especially a third instance, would lead to the revocation of the operators’ licenses.
Moreover, these operators would then be ineligible to apply for a new license for a duration of three years.
The draft legislation proposed by the Senate is next due for consideration by the Chamber of Deputies. Upon its acceptance, all gambling and betting outlets would be granted a 60-day window to move their operations outside city centres following the announcement in the Official Monitor.
The onset of the year saw the country’s regulatory body voting against advertising related to gambling and betting as part of endorsing 2022’s proposed law.
Earlier this year, in July, the Ministry of Finance made public a Fiscal Code draft proposing a 40% tax on casino winnings.
