The threat posed by the black market in Romania continues to intensify amid ongoing instability.
Evoke has become one of the latest companies to draw attention to the deteriorating market conditions. The company noted that the growth of the illegal segment, combined with increased tax pressure, is negatively affecting the financial performance of its international segment.
Sean Wilkins, Chief Financial Officer at Evoke, told investors: “Romania continues to be affected by the combination of a weaker economy, higher taxes, and the growth of the unregulated market. We have responded by managing marketing and promotional investment carefully to protect returns.”
According to Wilkins, Evoke’s tax expenses increased by an additional £6m ($8.1m) following the increase in Romania’s gambling tax rate from 21% to 30%. Meanwhile, the regulatory environment remains unstable, with little indication that the situation will normalize in the near term.
Market on the Brink
In 2024, Romania became Evoke’s fifth key market after the company acquired Winner.ro for €10m ($11.8m) and integrated the asset with its 888 brand.
At the time of the deal, Evoke CEO Per Widerström was optimistic about the prospects of the Romanian market, describing it as an “exciting growth market.” However, the combination of increased tax pressure and the expanding black market appears to have significantly dampened those expectations.
“We do see that this is an overall weak market, and in particular hit by the increased taxation,” said Widerström during the Q2 earnings call.
The black market is a concern in many countries, but higher taxes can make the problem even more acute. When increased tax pressure puts additional strain on regulated operators, their financial capacity is reduced, which in turn can affect the quality and competitiveness of the products they are able to offer.
Chairman of Rombet Dan Ghita previously said that tackling the illegal market should be one of the government’s key priorities. He stressed the need for effective measures to combat illegal operators and for a regulatory framework that would allow the legal sector to compete successfully with the black market.
Given the scale of the problem, Ghita believes Romania also needs to strengthen cooperation with other European countries. According to European Union estimates, member states lose more than €22bn ($25.9bn) in tax revenue every year due to illegal gambling.
Ghita said: “A coordinated Balkan and European approach to information sharing, enforcement and regulatory cooperation would significantly strengthen efforts against the black market. At the same time, governments must recognise that excessive regulation and disproportionate taxation often push consumers towards illegal alternatives.
“Illegal operators pay no taxes, ignore responsible gambling obligations and expose consumers to greater risks. This has a significant macroeconomic impact through lost fiscal revenues, unfair competition and zero consumer protection.
According to Ghita, the market’s long-term prospects remain under threat, particularly if major operators begin to lose confidence in its potential and future development.
Alongside Evoke, FDJ United has also highlighted the situation in Romania. The company reported that its tax payments in the first half of the year were €52m ($61.2m) higher than in the same period of 2025. The increase in tax expenses was driven by higher tax rates across European markets.
Is There Room for Optimism?
The future of reforms in Romania remains uncertain. The country’s political parties have yet to reach a consensus on their scope and direction. There are also concerns over ONJN’s ability to effectively oversee the gambling sector amid corruption allegations involving several officials at the regulator.
Nevertheless, Stasya Yautodzyeva, Head of Analytics at 4H Agency, said Romania remains an attractive market for businesses thanks to its “large and active player base and strong demand for online gambling.”
Ghita believes that confidence in the Romanian market can be restored, but this will require a long-term commitment to improving governance, strengthening the professionalism of regulatory bodies and adopting evidence-based policymaking. He also stressed that transparency and deep institutional reforms are crucial for the sustainable development of the market.
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