Romania: New Legislation Reforms the Gambling Sector

Romania

In an effort to reform gambling regulations and open up the national market to international gambling operators, the Romanian Government enacted new gambling legislation which entered into force on 26 February 2016 (the “Gambling Norms”).

The new legislation is expected to significantly impact the gambling sector in Romania by bringing increased legal certainty due to clearer regulations and granting foreign gambling operators access to the Romanian online gambling market.

Licensing requirements

One of the most important amendments introduced by the Gambling Norms relates to licensing requirements of gambling operators and to those who carry out activities related to gambling (such as sale, lease, production, distribution, and maintenance of gambling equipment). Licensing and authorisation requirements differ depending on the type of activity carried out; for example, Class I licenses are required for gambling activities, whereas Class II licenses are required for related activities - with specific requirements depending on the type of activity performed.

In order to ensure enhanced stability of gambling operators, under the Gambling Norms licenses and authorisations are valid for 10 years from the issuance date (3 years in the case of temporary gambling activities).

Online gambling operated by foreign gambling operators

Additionally, the Gambling Norms detail the conditions in which online gambling may be operated in Romania, providing that only economic operators registered in Romania or in another EU/EEA member state or in Switzerland may organise and operate online gambling. This is a notable change from the prior law which required operators to be legally established in Romania in order to offer online gambling here. Such operators need to obtain a prior license and authorisation from the National Office for Gambling in Romania (“ONJN”) in order to carry out online gambling. Additionally, operators registered outside Romania are required to appoint authorised representatives for the purpose of liaising with the Romanian authorities.

New sanctions

The Gambling Norms also introduce specific sanctions for people who offer gambling services without a license and unauthorised gambling sites, platforms, or applications of operators who carry or carried out unauthorised online gambling activities in Romania will be included in a “black list” based on the decision of the ONJN Surveillance Council.

Moreover, the Gambling Norms provide for severe sanctions applicable to operators who violate gambling legislation, with fines ranging from approximately EUR 2,200 to EUR 11,100. Additional sanctions, such as license suspension for up to 6 months, may be imposed.

Additional novelties

The Gambling Norms include various other provisions regulating, for example, taxes owed by gambling operators, temporary gambling activities organised in holiday resorts, mandatory conditions for performance of land-based and online gambling activities (including applicable standards and technical requirements), safety measures dedicated to the protection of minors, as well as the protection of consumers of online betting.

The new legislation is expected to have a significant impact on the gambling sector in Romania, on the one hand enabling the access of foreign gambling operators on the Romanian online gambling market, and, on the other hand, bringing increased legal certainty due to clearer provisions that regulate the gambling sector.

If you would like more information on the Gambling Norms, please contact Ana-Maria Nistor and Laura Capata.