Big Yearly Earnings for Romanian Gambling IndustryPublished March 16, 2016 by Lee R
The Romanian market has reached eight figures, too large for operators to disregard; at the same time, the ONJN blacklist keeps some very notable industry names outside of the game.
Romania has a blacklist, but they know how to clean it, as yearly revenues show.
As far as relevance, the country has a top gambling market which cracked the billion pound level in revenues last year.
According to figures recently released by the President of the National Gambling Office ONJN, Romania's 488 licensed gambling operators in the country paid over £269 million in taxes, a whopping 71% jump compared to 2014. Of those operators, 19 were online gambling operators, leaving huge room for growth in Romania's online sector.
Local media further clarified that instant lottery games, football, dog races and tennis are the preferred gambling sectors amongst players.
Revamp Boosted Revenues
The revamping of Romanian online gambling regulations just last May opened up the market for international operators, which served to successfully boost tax revenues from operators are permitted to operate in Romania such as 888 Casino, Winmasters, Betfair and Unibet.
The growth of the online licensed and regulated market has not been without roadbumps. Compliance issues resulted in the compilation of the blacklist faithful to the Romanian regulation model, with leading operators “making” the blacklist including bwin.party and Bet365.
It turns out the blacklist is misleading to an extent. The countries blacklisted were operating prematurely rather than without authorization, as they had already applied for licenses whose issuance was imminent. The situation was resolved between the government and the blacklisted companies through a determination of back taxes to be paid by the “violators” accrued over the times they were operating ahead of final authorization.
Operator Respect Retained
In a country where the boundaries of operation and IP jurisdiction are still being finalized, it would be a misnomer to think that operators are thumbing their noses at the rapidly expanding Romanian marketplace authority.
In a global environment where compliance is key to consistent acceptance of license application, a private online operator's inclusion on a blacklist could earn them a highly undesirable reputation of disrespect for national regulatory requirements. In an rapidly expanding global business environment with huge growth potential, this would clearly be bad for business.
Taking the time to understand the three-tier tax system in Romania is likely the best way for operators to avoid the blacklist there. Assuming it is possible to avoid taxes through early entry appears to be the oversight that stands as counterproductive strategy as well