Romania’s Game-Changing Move: A Bold Leap in Online Gambling License Fees!

Romania’s online gambling landscape is witnessing significant shifts. In a surprising move, the Romanian government has greenlighted a substantial hike in annual gambling licensing fees across all categories.

This bold decision was part of an emergency ordinance unveiled on Thursday, introducing comprehensive reforms in Romania’s gambling regulations. These pivotal changes encompass steeper licensing fees, revamped advertising guidelines, a stringent prohibition on alcohol within gaming venues, and a mandatory clause for gambling enterprises to establish a fiscal headquarters within Romanian borders.

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New Gaming Oversight Body Formed Next to ONJN

Alongside the ONJN, a fresh organization has been established, vested with several responsibilities. Key among these are the prevention of gambling addiction and the deployment of activities and programs safeguarding minors and other susceptible groups—both socio-economically and otherwise—against the risks of gambling. The organization’s mandate also extends to the promotion of responsible gambling, treatment of gambling addiction, and responsible gambling advertising.

This body will develop a robust IT infrastructure, encompassing both hardware and software elements. A central feature of this system will be a national database designed to combat gambling addiction. This database will hold records of self-excluded and blacklisted individuals. Additionally, a dedicated communication line, “Telverde” will be established.

Revenue Structure

The organization’s revenue is primarily sourced from the annual contributions of licensed gambling operators. The breakdown is as follows:

  • Remote gambling operators, Class I: €500,000 annually.
  • Directly involved entities in both traditional and remote gambling, Class II: €15,000 annually.
  • State monopoly remote games, Class III: €100,000 annually.
  • Traditional gambling operators:
    • Lotto games: €200,000 annually.
    • Video lottery games: €100 per device annually.
    • Pari-mutuel betting: €50,000 annually.
    • Fixed-odds betting: €200,000 annually.
    • Return betting: €100,000 annually.
    • Casino-specific games: €4,000 annually per game table.
    • Poker club games: €5,000 annually per club.
    • Slot-machine games: A tiered approach is employed:
      • €300 annually per authorized slot in 2024.
      • €500 annually per authorized slot from 2025 onward.
    • Bingo games in gaming halls: €5,000 annually.
    • Television network bingo games: €500,000 annually.

In a move that underscores the government’s commitment to responsible gambling, 70% of these increased contributions will bolster the state treasury. The remaining 30% will be channeled towards initiatives promoting responsible gambling.

Annual Licensing Fees for Games of Chance

Explore the latest fee structure for gambling licenses, showcasing significant increases across multiple categories when compared to previous rates. Dive in to see how the changes might impact on your operations.

  1. Lotto Games: €200,000
  2. Mutual Bets: €65,000
  3. Fixed Odds Bets: €200,000
  4. Counter Bets: €150,000
  5. Casino Games: €150,000
  6. Poker Club Games: €25,000
  7. Slot-Machine Games: €150,000
  8. Bingo Games (Gaming Rooms): €15,000
  9. Bingo Games (TV Networks): €150,000
  10. Remote Gambling Licenses Categories:
    • Class 1 License: Aimed at remote gambling operators engaging directly with players: €300,000/year.
    • Class 2 License: For entities in traditional and remote gambling, as well as conformity assessment bodies. Fees are €20,000/year for the following:
      • Operators offering platform management and hosting
      • Payment processors
      • Software producers/distributors for gambling
      • Affiliates
      • Certifiers
      • Auditors
      • Conformity assessment entities
    • Class 3 License: For lottery game operators: €200,000.
  11. Poker Festival: €20,000
  12. Temporary Casino Games (3-month validity): €27,500
  13. Raffle Games (Traditional): €20,000
  14. Video Lottery Games (Traditional): €100,000

Yearly Authorization Fees for Gambling Activities:

Unravel the new yearly fee framework for gambling operations, reflecting notable changes in rates across multiple game categories. Discover what’s in store for both traditional and remote gambling platforms.

  • Traditional Lotto Games: €300,000.
  • Mutual Bets (Traditional): 21% of the game revenues as per art. 11 of the emergency ordinance, with a minimum fee of €120,000.
  • Fixed Odds Bets (Traditional): 21% of game revenues, with a baseline of €200,000.
  • Counter Bets (Traditional): 21% of game revenues, with a minimum fee of €200,000.
  • Casino Games:
    • In Bucharest: €70,000 per table.
    • Outside Bucharest: €40,000 per table.
  • Poker Club:
    • In Bucharest: €82,500 per location.
    • Outside Bucharest: €38,500 per location.
  • Slot Machine Games:
    • Class A Slot Machine: €5,300.
  • Bingo (Gaming Rooms): €7,500 per hall. Plus, 5% of the value of cards bought from the “National Printing Company”.
  • Bingo (TV Networks): 23% of game revenues, with a minimum of €150,000.
  • Remote Gambling (Class 1 & 3): 21% of game revenues, starting at €400,000.
  • Poker Festival: €35,000.
  • Temporary Casino Games: €22,000 per table (3-month validity).
  • Raffle Games: €85,000 per venue. Additionally, 5% of the ticket value purchased from the “National Printing Company”.

A Safety Net for Licensing

To ensure financial security, operators are obligated to maintain minimum capital reserves, especially if they default on licensing fees. Depending on an enterprise’s revenue, these mandatory reserves could touch €1,000,000 by 2025.

Guarantee Levels to Cover Risk of Non-payment:

Traditional Gambling Activity (excluding casinos):

  • For 2024: The guarantee is based on the organizer’s income level:
    • Up to €5,000,000/year: €500,000 guarantee
    • €5,000,001 to €20,000,000/year: €800,000 guarantee
    • Above €20,000,001: €1,000,000 guarantee
  • From January 1, 2025: A flat guarantee of €1,000,000, irrespective of the organizer’s income.

Casino Gaming (Traditional):

  • Guarantee: €3,000,000

Online Gambling Activity (excluding online casinos):

  • For 2024: The guarantee is based on the organizer’s income level:
    • Up to €5,000,000/year: €500,000 guarantee
    • €5,000,001 to €20,000,000/year: €1,000,000 guarantee
    • Above €20,000,001: €2,000,000 guarantee
  • From January 1, 2025: A flat guarantee of €2,000,000, irrespective of the organizer’s income.

Online Casino Activity:

  • For 2024: The guarantee is based on the organizer’s income level:
    • Up to €5,000,000/year: €1,000,000 guarantee
    • €5,000,001 to €20,000,000/year: €2,000,000 guarantee
    • Above €20,000,001: €5,000,000 guarantee
  • From January 1, 2025: A flat guarantee of €5,000,000, irrespective of the organizer’s income.

Redefining Gambling Ads in Romania

Promotional campaigns by operators are undergoing a transformation as well. Operators must prominently display their ONJN license in all promotional materials and refrain from dispatching unsolicited electronic messages. Furthermore, advertising on billboards exceeding 35 square meters is strictly off-limits.

While the ordinance’s approval was widely anticipated, Prime Minister Marcel Ciolacu’s remarks on Tuesday grabbed attention. He candidly addressed the criticisms, asserting that he wouldn’t bow down to threats from the gaming sector, a subtle dig at past politicians who allegedly yielded to industry pressures.

Conclusion

The recent uptick in license fees, guarantees, and social fees underscores a commitment to bolstering player safety and ensuring a more regulated and responsible gaming environment in Romania. These changes not only reflect a proactive approach to address potential gambling-related issues but also ensure that only the most dedicated and genuine operators thrive in the market. By setting a higher financial threshold, the landscape is primed to favor those operators who are serious about adhering to standards and delivering a secure gaming experience. In the end, these measures are a testament to Romania’s dedication to protecting its citizens while also allowing committed operators to continue serving their clientele responsibly.

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