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Romanias progress in online gambling regulation
Wednesday May 4,2016 : ONE YEAR ON, ROMANIA ONLINE GAMBLING REGULATION PROGRESSES (Update)
Requirement for operators to have a physical presence in the country dropped, but the taxes remain hefty.
The Romanian media reviewed the country's progress in online gambling regulation and licensing this week as the one year anniversary of government’s decision to open up the market passed.
The reports noted that the delays in implementation have not been entirely the national government's fault, due to time spent in liaising with the European Commission to ensure compliance with European Union principles.
One of the most important concessions made by the Romanians during this process has been the abandonment of a requirement that licensees have a registered physical presence in the country.
The EC was not the only interested party to bridle at this condition...operators based in more tax-friendly jurisdictions proved reluctant to seek licensing, and ultimately the government dropped the requirement in favour of a triple tiered taxation system for the online gambling market based upon gross gaming revenues and structured thus:
* 1 percent tax on GGR between Euro 133 and Euro 15 000
* 16 percent between Euro 15 000 and Euro 100 000
* 25 percent on GGR above Euro 100 000
Government has projected tax revenues of around Euro 100,000 on this basis.
Online operators will still be required to run a mirror site within Romania to ensure appropriate regulatory and financial oversight by the authorities.
Applications will not be accepted from EC casino companies in countries such as Switzerland, Norway, Iceland and Liechtenstein.
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