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Romania’s iGaming: Potential, Regulatory Measures, Development

19 august 2022
Author: James Burton
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Romania is becoming an increasingly ambitious market for gambling operators. A representative of Delasport Oren Cohen Shwartz shares his reflections on the potential of the iGaming sector in the region.

Romanian iGaming business: peculiarities

About the State

The size of the country's market, which has nearly doubled in the last 3 years, is projected to be € 900 million GGY.

In January 2022, there were 16.79 million people who used the Web (88% of the total population). At the beginning of this year, the state had 27.41 million mobile connections (143.7% of the country's people), according to data from GSMA Intelligence. Between 2021 and 2022, the jurisdiction’s number of such connections rose by 1 million.

Regulatory Body

On March 27, 2013, the ONJN was established, and the government promptly authorised it to provide licences to internet service providers. To receive iGaming permits, a distributor had to have an offline presence in the country under its initial registration requirements.

Emergency Ordinance No.92 modified the authorisation rules so that foreign enterprises no longer required physical permits to request a local licence.

Modern Rules

iGaming companies are entitled to apply for a permit in one of 3 categories under the current regulatory framework, which went into effect in February 2016.

Each class has its requirements, namely:

  1. The Romanian law allows for the sale of any authorised goods on the domestic market, whether it be in a physical or digital form, as long as the distributor planning to offer it has the required licences. The holders of this permit are B2C businesses.
  2. This kind of accreditation was added to gaming regulations and is required for organisations that operate legally in the traditional and online sectors as well as conformity assessment bodies.
  3. A statutory control on the management of all lotteries has been assigned to the National Romanian Lottery.

The following businesses must possess a class 2 licence:

  • Vendors who provide hosting and administrative services for entertainment portals.
  • Operators engaged in the production, transmission, and maintenance of gaming. The import, export, intracommunity purchase, and other related processes, with a view to advertising or usage in any form.
  • Companies that specialise in the development or distribution of gambling software.
  • Bodies for evaluating conformity.
  • Financial providers, and several other categories.

If B2C and B2B distributors meet the requirements for licensing, Class 1 and Class 2 permits are easily accessible.

Tax Policy

The imposition on gross revenue is 16% but cannot be less than € 100,000 per year. 1% must be paid on prizes exceeding € 15,000.

Beginning on January 1, 2019, a 2% monthly levy on the sum of the participation fees went into effect. Bettor’s deposits are used to pay this tax.

Gamblers Protection Measures

The tougher regulations as part of the new legislation are intended to prevent ludomania and minors from engaging in any form of gambling.

The regulatory body mentions the following rules for distributors:

  1. Every portal needs to contain a timer that lets users monitor how long their gaming sessions have lasted, as well as a balance statement.
  2. Each player who engages in gambling more than once per 12 hours should receive an e-mail warning about the potential risks they may face. All material should be supplied in Romanian.
  3. Every gamer has the option to set daily, weekly, and monthly deposit limits, in addition to deciding whether certain wins can be withdrawn in the same way that they were initially placed.
  4. Users can remove their account either completely or temporarily for a minimum of 24 hours. Players will have to wait 6 months to open a new account if they wish to permanently delete their old one.

Preferences of Locals

Casino games in Romania: popular entertainment

Romania has a long history of land-based gaming and strong gambling culture.

The market's most popular online slots are those that have their origins in retail-based casino halls. EGT machines have the widest spread in the country with a market share of approximately 70%.

Among the prefered slot titles are the following:

  • Shining Crown;
  • 100/40 Super Hot, and others.

The fruit motif is one of the favourite themes among Romanian punters. Also, participants are becoming increasingly interested in network-level progressive jackpots with the hope to win the largest of their 4 categories.

Talking about casinos with live dealers, locals prefer blackjack, roulette, and entertainment with a fortune wheel.

Poker is one of the most played card games in Romania. The state gambling laws allow users to access a global pool, in contrast to many other countries where participants can only face off against residents of their nation.

Plans and Predictions

Romania's decision to legalise gambling has been welcomed as a major step forward for a nation that was formerly under communist control. It has made it possible for society to become much more open and free.

The state changes to be a culture that is forward-looking toward new technology and the wealth that online gambling can offer to all parties involved.

The nation is already seeing substantial growth in its tech development sector. It has seen employment prospects due to the growth of the iGaming sphere, which has drawn young and talented individuals.

Romania will continue to create convenient conditions for luring decent operators into the market. The local industry sees rapid expansion and continuous legislative clarification. It establishes the nation as a significant player in the global arena.

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