Romania Gambling Reforms Imminent in 2015Published January 8, 2015 by Mike P
Gambling reform is coming to Romania in the early weeks of 2015. Taxation on winnings and new licenses for foreign operators are the major changes.
The tail end of 2014 was an important time for gambling legislation in many European countries, with the likes of Ireland, Spain, Andorra, and, in this case, Romania planning to make imminent changes.
Just before the end of December, the Romanian government approved an ordinance to replace the 2010 legalisation that had previously governed the nation’s gambling industry. As a result, gambling taxes will be lowered in Romania and foreign operators will now be permitted to apply for licenses.
In terms of the timeline, Romanian residents will not have to wait long before the changes are implemented. And because the new ordinance was agreed on 30 December, the government will have 45 days in which to make the changes. Romania hopes to generate greater revenue with its new reforms.
Major Changes Coming
At present, there is a single 25% tax on gambling winnings. However, the new system is one that will feature three tiers of taxation. Firstly, winnings worth from €133 to €15,000 will be subject to a 1% tax. Secondly, winnings of €15,001 to €100,000 will be taxed at 16%. And, thirdly, winnings of €100,001 or greater pay the current 25% tax.
The second of the major changes came about mostly due to pressure from the European Commission about opening up the industry in line with the European Union’s freedom laws. Previously, the 2010 ordinance had only applied to Romanian operators. Now, though, the entire market will be regulated.
Odette Nestor, president of the country’s National Office for Gambling, provided the following confirmation: “We now have a legal framework that allows gambling operators to get licensed in Romania.”
Over the past few years, a problem with the Romanian market was that it lacked a regulator body such as the new National Office for Gambling. Now, though, foreign operators have a body that they can apply directly to acquire licenses.