Romania’s Gambling Regulator Faces Scrutiny Over Licensing and Tax Oversight
Romania’s National Office for Gambling (ONJN) is facing serious allegations of regulatory negligence after an audit revealed major lapses in tax collection and licensing oversight. The Court of Accounts (CCR), responsible for auditing government agencies, found that between 2019 and 2023, ONJN failed to properly enforce compliance standards, leading to potential tax liabilities between €630 million and €900 million.
Uncollected Fees and Tax Discrepancies
The audit exposed shortcomings such as a failure to monitor gambling operator transactions, a lack of auditing data on licensing fees, and inadequate enforcement of penalties. Furthermore, ONJN did not utilize its IT monitoring terminal to verify reported figures from operators, despite having the necessary access credentials.
One of the most pressing concerns highlighted in the audit is ONJN’s failure to ensure accurate tax and licensing fee payments. The report found that the regulator did not verify discrepancies in Return-to-Player (RTP) rates submitted by operators, which could have led to significant underpayment of fees.
In particular, the audit identified that operators licensed in Romania but registered in Malta had not been properly assessed for compliance with local regulations. This resulted in an estimated €365 million in uncollected authorization fees over the audit period. Additionally, from 2019 onward, ONJN failed to conduct even minimal reviews of newly imposed fees, creating further financial discrepancies.
Leadership Instability and Weak Oversight
The ongoing governance issues within ONJN are further exacerbated by frequent leadership changes. Since 2018, the regulatory body has seen five different presidents, making it difficult to maintain consistent enforcement policies.
Industry experts have pointed out that these governance challenges have weakened Romania’s regulatory credibility. Ivan Kurochkin, Partner at 4H Agency, emphasized that inadequate oversight not only results in tax revenue losses but also raises concerns about the overall integrity of Romania’s gambling market.
The Need for Reform
The findings from the audit are likely to increase pressure on the Romanian government to implement more stringent regulatory measures. There is growing concern that the lack of compliance monitoring could expose the sector to further risks and reduce investor confidence.
According to Kurochkin, the current regulatory framework lags behind other European markets, and Romania may soon be forced to modernize its monitoring and enforcement systems. While these changes would require operators to invest in more detailed reporting mechanisms, they could also contribute to a more structured and competitive gambling industry.