Throughout the current decade, Romania has repeatedly faced political upheaval, which has also affected the regulation of the gambling market, including the licensing process.
The appointment of Luca Niculescu as prime minister, following numerous unsuccessful attempts to establish stable leadership in the country, could create conditions for the consistent implementation of reforms at Romania’s National Gambling Office (ONJN).
As part of efforts to stabilise the gambling sector, ONJN was previously subject to a strategic review initiated by newly elected President Valentin-Ioan Tomescu. He identified digitalisation, strengthening the workforce and addressing gambling addiction as key priorities.
There is currently no indication that Niculescu’s appointment will lead to Tomescu leaving his position. The new prime minister has also identified digitalisation as one of his priorities.
Niculescu has also previously stated that he does not intend to introduce new taxes across the Romanian economy as a whole. This approach could be welcomed by gambling industry stakeholders, who have faced changes to the taxation of operator revenues and player winnings since 2018.
Romania’s gambling market continues to adjust to significant increases in taxes and licence fees. Winnings of up to RON 10,000 (approximately $2,170) are now taxed at 4%, up from the previous rate of 3%. Winnings between RON 10,001 and RON 66,750 (approximately $2,172–$14,470) are subject to a flat tax of RON 400 (around $87), plus 20% of the amount exceeding RON 10,000.
Winnings above RON 66,750 (approximately $14,470) are taxed at RON 11,750 (around $2,540), plus 40% of the amount exceeding the threshold.
These changes come as Romanian authorities seek to reduce the country’s budget deficit, which remains one of the largest in the European Union.
Speaking at the SBC Summit in Lisbon, Dan Ghita, Chairman of the Rombet association, emphasised that regulatory predictability is essential for the growth of the gambling market. He said frequent changes to the rules negatively affect operators’ willingness to invest in the industry.
Claudiu Mîndruț, Deputy General Director of state-owned lottery Loteria Română, also called for a stable regulatory environment and warned policymakers against adopting an excessively heavy-handed approach. Reflecting on the past few years, he noted that even the state lottery had faced difficulties.
“Serious companies need predictability. Otherwise, opportunists can step in,” he warned as Romania moves towards a new phase.
The Romanian government is currently led by the Social Democratic Party (PSD). Authorities have been given six months to reach an agreement that would provide more stable leadership for the country.
This period could create an opportunity for major reforms in the gambling sector and at ONJN. It would allow the authorities to identify weaknesses requiring urgent action and develop measures to strengthen the regulator’s capacity and improve its engagement with citizens and licensed operators.
Speaking previously about the planned reforms, Tomescu said:
“The first three weeks have been devoted primarily to assessing our activities and identifying problems requiring immediate intervention.
“It is extremely important that I have an accurate picture of the institution’s situation before making decisions, but the assessment must be followed by concrete measures.
“We have already established a series of priorities that can deliver results within a short period, alongside measures requiring a structural approach and a longer implementation timetable.”
Despite the challenges, Romania’s gambling market continues to offer opportunities for growth. Ana-Maria Baciu, Managing Partner at Baciu Partners, noted that although an illegal gambling market exists in the country, it is not as aggressive as in several other European markets. She also said that operators remain strongly interested in entering the Romanian market.
Baciu urged ONJN to ensure continuity in its leadership and avoid frequent changes at the top. She expressed hope that the formation of a new government could help bring greater stability to the gambling sector.
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