Since 2010, Romania has allowed internet casinos and other forms of gambling legal. However, no steps were taken to secure the industry’s growth. Romanian citizens have criticized the country’s gaming regulators for the current state of the online casino business. Instead of updating its archaic regulation, the Romanian gambling authorities refused to bring it in line with the rest of Europe and the world. According to Bogdan Casino, this is the key cause of the online gaming industry’s lack of growth.
The first step
Romania joined the EU in 2007, which means that online casino legislation can only be implemented after receiving approval from the European Commission. Operators seeking to engage in gaming activities in Romania faced several challenges. Even though offline gaming was permitted, there were no gambling officials or authorities to issue licenses to these operators. In 2013, the problem was remedied when the Romanian National Gambling Office was established, and steps were taken to set rules and regulate internet gambling.
The laws, however, were criticized as being too restrictive because regulators also demanded that all licensed online gambling firms have a Romanian representative. The regulators’ condition was deemed to violate the European Commission’s efforts to foster a free-market environment. Even after countries in the European Union are given the freedom to set their laws, they must still abide by the European Commission’s guidelines. Aside from that, the European Commission has chastised Romania for its unethical tactics, which have hampered the growth of the online gaming business.
The European Commission is a European Union institution.
Members of the European Commission recommended that the restrictive restrictions be repealed and foreign online casino companies operating in Romania. According to the new guidelines, every online platform that distributes gaming goods and services must have the operator’s name and address. They must also have information regarding the operator’s license and a statement emphasizing that minors cannot participate in online gambling. There should also be clear information on the risks of excessive gambling and how to overcome gambling addiction. The rules, payment information, privacy information, and terms and conditions for each online game must also be presented. The operators must also provide free training and assistance to the players to become proficient at a certain game. Romania’s regulatory authorities passed a law that intends to take the country’s online casino business to the next level.
Taxes and regulations
Players residing in Romania are currently permitted by law to participate in various games classified as games of chance, including fixed-odds betting, slot machines, matched betting, and other internet games. The new regulations are designed to alter the taxes paid by online gaming operators, the payment mechanisms accessible, and, most importantly, the taxes that players must pay should be decided by the games they play. Apart from the tariffs, The new legislation aims to put regulatory safeguards to avoid gambling addiction and the participation of young people who are not legally allowed to gamble. A unique Foundation was established to fulfill these objectives. The members’ primary goal is to ensure that the measures adhere to the European Committee for Standardization’s recommendations.
On the other hand, changes to internet gaming are seen as the most critical in allowing international gambling firms to succeed in Romania’s gambling business. Aside from the license payments, there is also an “annual authorization charge.” This tax, which accounts for 16% of total gaming revenue, must be paid online gambling companies. Operators of video lottery games and broadcast bingo pay an annual authorization fee of 2% and 5% of total gaming income, respectively. Each license is valid for ten years, compared to five years under previous legislation. Offline gaming operators must meet certain technical standards, according to the new regulation.
First, the provider’s central IT system must be transferred and stored in a mirror and backup server in Romania, where all information about the players, fees, and winnings is saved for five years. The ONJN Monitoring Committee must approve the specific software used to run the games of chance. The players’ activities must be recorded using particular communication tools, and the time and duration of the gambling period must be displayed. The data must be kept for five years. Each online gaming operator must ensure that a Romanian-based representative is available to represent the company when necessary.