Romanian gambling operators blast proposed 40% withdrawal tax

Romania’s Association of Remote Gambling Organisers, AOJND, says the levy would cause players to move to unlicensed operators.

Romania.- The online gaming industry association Asociatia Organizatorilor de Jocuri de Noroc la Distanta (AOJND) has heavily criticised proposals to impose a 40 per cent tax on gambling withdrawals in Romania. It warns that the move would lead players to use unlicensed operators.

The AOJND said the move would be likely to reduce Romania’s 90 per cent channelisation rate to the regulated market. It also noted that a migration of players to unlicensed sites could actually harm rather than boost government revenue.

It warns that online gambling operators could end up paying up to 50 per cent less in tax due to an overall reduction in business. It also noted that the majority of withdrawals were for small amounts.

AOJND president Odeta Nestor said: “Before adopting such a fiscal measure, a number of factors must be taken into account. Firstly, online gambling is primarily entertainment, not a source of revenue for players.

He added: “Basically, we are mostly talking about cases in which the player does not pursue the win at any cost but the pleasure of competing. In this way, online gambling is a source of reducing daily stress.

“I have often emphasised that Romania is a success story in terms of gambling legislation. But this situation depends on the ability of the authorities to maintain an attractive legislative and fiscal framework.”

Nestor called on the government to carry out industry-wide consultations to gain knowledge from the gaming sector itself before making any legislative changes, emphasising that the AOJND was willing to offer its expertise.

In March, Romania’s National Gambling Office ONJN blocked another 26 unlicensed gambling sites. The Romanian regulator has been regularly updating its list of blocked sites since it began in 2015 ahead of the introduction of regulated igaming.

The latest list of blocking orders featured Sloty.com and a1xSlot.

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