Romania Moves to Dismantle Gambling Regulator Amid Tax Losses and Black Market Surge

Regulator Under Fire After €1 Billion in Lost Revenue

A recent audit by Romania’s Court of Accounts found that ONJN’s inadequate oversight and outdated systems allowed nearly €1 billion in gambling tax revenue to go uncollected between 2019 and 2023. Key issues identified in the report included obsolete IT infrastructure, failure to monitor return-to-player (RTP) rates, and poor licensing enforcement.

The agency also struggled to enforce the 2% monthly tax on online gambling participation fees introduced in 2019. These regulatory lapses have drawn criticism from lawmakers and public watchdogs, who argue that ONJN has lost its ability to effectively oversee Romania’s gambling market.

Hopes for reform briefly surfaced with the recent appointment of Vlad-Cristian Soare as ONJN president. Soare had pledged to overhaul the agency by upgrading internal systems, improving staffing, and working more closely with Romania’s National Tax Administration Agency (ANAF).

However, these efforts were deemed insufficient by critics, especially in light of mounting evidence that ONJN could not recover credibility or regulatory control. As pressure built, political voices began advocating for ONJN’s powers to be transferred entirely to the Ministry of Finance and ANAF.

Unchecked Growth of the Black Market

As official oversight weakened, Romania’s unregulated gambling sector grew. Experts and advocacy groups point to the delay in implementing responsible gambling frameworks as a driving force behind the rise of black market operators. These unlicensed platforms target vulnerable players and operate beyond the reach of national consumer protections.

The lack of effective enforcement has added urgency to calls for a new regulatory approach. Lawmakers and public health advocates warn that unless action is taken quickly, both tax losses and gambling-related harm will continue to rise.

New Tax Measures on the Table

In parallel with the regulator’s dissolution, the government is considering a new package of fiscal measures aimed at tightening control over the gambling industry. One of the most significant proposals involves a 20% tax on gambling activity, potentially accompanied by a health contribution.

In addition to the 20% turnover tax under consideration, the Romanian government is also introducing a 19% VAT on betting tickets. These cumulative fiscal pressures could severely impact the industry’s sustainability. With both players and operators facing reduced margins, there is growing concern that consumers may migrate to unregulated markets. Operators, meanwhile, may be forced to cut costs or scale back investments, further weakening the regulated ecosystem in Romania.

These reforms are part of broader changes in Romania’s tax code, which also include measures targeting influencers and high earners through new solidarity taxes.

Self-Exclusion Legislation Advances in Parliament

Despite the turbulence surrounding ONJN, progress has been made on responsible gambling legislation. Romania’s Senate recently passed a bill that would require the regulator to implement a self-exclusion feature on its website, giving players the option to block their access to gambling services for 12, 24, or 36 months.

The bill mandates the creation of a national registry of self-excluded individuals, accessible to all licensed operators. It also stipulates that players who self-exclude will be eligible for a refund of any bets placed during the exclusion period, which must be processed within 48 hours of the request.

The bill passed with 118 votes in favor and just eight against, and now moves to the Chamber of Deputies for further debate.

Restrictions on Gambling Advertising Proposed

Regulators are also pushing for tighter controls on gambling advertising. The National Audiovisual Council (CNA) has proposed a ban on gambling ads featuring celebrities or public figures, particularly on digital platforms.

The plan would restrict such ads to late-night hours or live sports broadcasts, signaling a broader shift in Romania’s stance on gambling promotion.