ROMANIA
Regulatory update for Romania and the Role of Insurance in the Gambling Industry RECENT REGULATORY CHANGES HAVE CREATED SOME MARKET TURMOIL BUT NEW SOLUTIONS ARE BEING MOOTED AS ANA-MARIA BACIU AND ANDREI COSMA REPORT
T he Romanian gambling industry has experienced remarkable growth over the past decade. This expansion has been accompanied by numerous legislative changes which reformed and updated the legal framework, but also increased by several times the tax burden and financial obligations incumbent upon operators. New legislative packages were adopted at the end of 2023 and the beginning of 2024, severely amending the Romanian gambling law. To better understand the full impact of these changes, we will examine the most notable ones with a special emphasis on a new provision that, it is fair to say, created quite a shock in the market: the increase in the guarantee requirements applicable to gambling operators.
As a brief recap, the legislation has always imposed the obligation for all gambling operators to set-up a guarantee meant to cover the risk of non-payment of their tax duties. Originally, the amount of the guarantee varied depending on the type of license held. In the case of online operators offering both casino and betting products (this combination of verticals being the most popular in Romania), the guarantee was set at the level of €200,000. Most operators would probably accept that this is a reasonable requirement for a regulated market like Romania that has shown consistent growth over the years. However, a major dilemma was created in October 2023 when the Romanian Government passed an ordinance dramatically increasing the sums required as guarantees. The result in 2024
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IMGL MAGAZINE | SEPTEMBER 2024
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