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Once the darling of European gambling regulation, Romania has spent the past few years turning the screws on the industry, but with a new President elected earlier this month, is change on the horizon?
In discussions on European gambling policy before the COVID-19 pandemic, Romania was often heralded as a successful and industry-friendly market.
The past two years have seen an unwinding of that reputation, with political sentiment shifting radically against gambling.
In the past few years, Romania has hiked taxes, dramatically increased licensing fees, demanded radical disclosure from B2B companies and seen political efforts to ban advertising and introduce affordability limits.
As the country began its election cycle late last year, the prospects looked even worse.
The result of the first round of voting saw right-wing outsider Călin Georgescu secure a shock victory. Among his campaign promises was a pledge to ban gambling entirely.
But his win was dramatically annulled by the courts and he was banned from running again after judges ruled that Russia had interfered with the campaign.
Nicușor Dan, the then mayor of Bucharest, who was not even a candidate in that initial vote, entered the race to stand against far-right nationalist George Simion, who had largely absorbed Georgescu’s voting bloc. Dan emerged victorious from a May 18 ballot with a seven-point lead.
“The Romanian gambling market finds itself at a regulatory crossroads,” explained Cosmina Simion, managing partner of the WH Partners law firm in Bucharest.
Dan, who ran as an independent, is seen as a level-headed and stabilising force, but the broader forecast for gambling will largely depend on the outcome of negotiations to form a government.
The new President is believed to want former interim President of Romania, Ilie Bolojan, of the National Liberal Party (PNL), to take the job of Prime Minister.
“Bolojan’s policy record may suggest a regulatory posture that balances market access with stricter oversight,” said Simion.
Much will hang on the role of the Social Democratic Party (PSD), which holds the largest number of seats in both the Chamber of Deputies and the Senate.
The party was the largest partner in Romania’s former ruling coalition, with its leader holding the office of Prime Minister, but it withdrew from government in May following right-wing success in the early presidential voting rounds.
The PSD was responsible for introducing Romania’s gambling licensing regime in 2015, but has subsequently dramatically raised taxes on the industry and backed the tightening of regulations in several areas.
The party says it is unsure if it will opt to join Dan’s coalition, with the new President predicting that negotiations will be completed in under a month.
Whatever the outcome of Romania’s complex political puzzle, there is little hope that enhanced pressure on the gambling industry will be reversed.
“The consensus across the political spectrum — regardless of the future governing coalition — is that tighter regulation, following the general trend in Europe, is inevitable,” said Simion.
“While the threat of outright prohibition has dissipated, in our opinion, the direction is unmistakably moving towards a tighter, more policy-driven regulatory environment,” she said.
In common with much of Europe, there are also fears of further tax hikes in the medium term, as the new government looks to address a gaping budget deficit.
Online gambling is currently taxed at 21 percent of gross gaming revenue in Romania, but players also face a winnings tax of between 3 and 40 percent.
“Taking into account the significant change already implemented at the end of 2023, which led to some consolidation and constriction of the market, one could expect that gambling will not be affected [with new tax rises], at least in the short term,” said Simion.
“Nevertheless, operators may remain conservative with their financial forecasts, as broader fiscal consolidation efforts might eventually spill into this area.”
Operators in Romania also have to contend with change at the top of the country’s regulator.
Vlad Soare, a former lawyer and head of industry trade group FEDBET, became the new head of the Romanian Gambling Office (ONJN) in April.
“His appointment marks a shift towards technocratic governance. Soare’s initial public communications suggest a clear focus on player protection, transparency, and industry dialogue,” explained Simion.
The halcyon days of Romanian gambling regulation may be over, but for a time at least, Dan’s victory appears to have steadied the ship.
“Operators must now prepare not just for compliance, but for constructive and active collaboration, particularly under a new ONJN leadership that prioritizes responsible gambling and structured dialogue,” said Simion.
“In an industry long shaped by ad hoc decisions and electoral cycles, this moment offers a chance for predictability, provided that political will translates into coherent, proportionate, and enforceable regulation.”
