The gambling market in Romania, while offering vast opportunities due to its large population and the innate penchant of its people for gaming, faces stringent regulations that pose significant challenges not only to casino operators but also to affiliate websites. This article aims to explore the regulatory landscape of gambling in Romania, incorporating some key statistics to provide a comprehensive overview of the current state of the market, along with a brief mention of how these regulations affect affiliate sites.
Regulatory Framework and Recent Changes
The Romanian gambling industry is overseen by the National Gambling Office (ONJN), which regulates various forms of gambling including online casinos, poker, sports betting, and lotteries. The legislative framework governing gambling activities has evolved over time, with significant updates aimed at tightening regulations around online gambling operators. One of the pivotal changes came with the Emergency Government Ordinance no. 82/2023 (EGO 82/2023), which mandates that online gambling operators must either establish a Romanian company or register a permanent establishment within the country. This ensures that all gambling revenue is recognized in Romania and subjects it to local taxation.
Taxation and Licensing
Following EGO 82/2023, online gambling companies now face a more complex taxation landscape, including corporate income tax on profits generated from Romanian gambling activities. The ordinance also outlines strict licensing requirements, compelling operators to have a physical presence in Romania either through registration or headquarters, or by establishing a permanent establishment through which all gambling revenues are processed. This move aims to bring more transparency and control over the gambling activities within the country.
Impact on Affiliate Sites
The Romanian market’s regulatory complexity extends to affiliate websites, which play a crucial role in promoting online casinos. According to the new regulations, affiliate sites, similar to gambling operators, require a Romanian license to operate, a requirement that poses significant hurdles due to the associated costs and bureaucratic processes. Gamblorium, an affiliate site with various language versions serving countries like Sweden, Germany, Canada, and more, finds these regulations particularly challenging.
Nodar Giorgadze, CEO of Gamblorium, comments on the situation: “The Romanian market is intriguing due to its large, gambling-enthusiastic population. However, the extensive bureaucratic barriers, such as the need for a Romanian license even for affiliate sites like ours, are prohibitive. Although we’ve launched a Romanian version of Gamblorium, due to the current regulations, our site cannot fully operate, as the absence of a license prevents us from evaluating and recommending casinos with Romanian licenses. We hope for regulatory changes that will make the market more accessible for affiliate platforms, ultimately benefiting Romanian players.“
Gambling Statistics in Romania
The gambling scene in Romania is vibrant, with approximately 26% of the population participating in gambling activities. This translates to around 2.4 million people engaging in gambling at least once a year, with 1.3 million of these players gambling online. These numbers highlight the significant potential of the Romanian gambling market, both for operators and affiliates, provided that regulatory hurdles can be navigated successfully.
Conclusion
The Romanian gambling market, with its stringent regulatory environment, poses challenges but also offers opportunities for growth and expansion. For affiliates like Gamblorium, navigating these regulations requires strategic planning and perhaps a hopeful outlook towards future regulatory adjustments that will allow a more inclusive and accessible market for all stakeholders involved. As the industry continues to evolve, clarity, practical solutions, and a collaborative approach between regulators and industry participants will be key to unlocking the potential of the Romanian gambling sector.
