Legal Overview
The entire legislative framework revolves around key laws and their amendments. Namely, the Government Emergency Ordinance 77/2009 stands as the primary law for online and land-based games of chance.
They amended the law in 2013, which led to the establishment of the ONJN, the Government’s office for issuing licences to operators and overseeing the entire industry.
In 2016, certification guidelines for online gambling systems and their auditing were approved, paving the way for the growth of online casinos in the country.
By the orders of the President of the ONJN, in 2019, a set of decisions was made, focusing on the methods of calculating taxes, and rules for fighting money laundering and financing terrorism.
In 2020, order no. 404/2020, approved the minimum technical conditions for verifying gambling means, including all gaming machines.
Types of Licences
There are three types of gambling licenses issued in Romania:
- Class I license — This license, together with all related authorisations, is reserved for all online and land-based B2C gambling businesses in the country. To offer any gambling services in the country, a company must first obtain a Class I license.
- Class II license — A Class II license is reserved for B2B providers who supply online casinos and betting sites with gaming content, such as manufacturers, software providers, live dealer casino game providers, marketing affiliates, payment processors, and the like.
- Class III license — A lottery license reserved for the Romanian National Lottery.
The Class I license is valid for ten years and may be renewed for that same period, as the Class II counterpart, subject to annual fees.
License Taxes and Fees
License taxes and fees depend on the gambling license you want to pursue. Class I license holders pay an annual tax of EUR 15,600 for an annual turnover of EUR 500,000 or less to EUR 312,000 for an annual turnover of EUR 10+ million.
Class II license holders pay an annual tax of EUR 9,500. This does not include administrative costs of EUR 9,500 charged for the issuance of the licence itself. Also, the Government of Romania levies an authorisation tax worth 23% of the annual GGR. The minimum authorisation tax cap is EUR 120,000.
The Government of Romania has recently proposed changes in the withdrawal tax rules by updating the Fiscal Code. Namely, a 3% tax will apply to all withdrawals below RON 10,000 (approximately €2,000). A 20% tax will apply to all withdrawals between RON 10,000 and RON 66,750 (€13,500), which will also entail a one-time RON 300 (€60) fee.
Finally, a 40% withdrawal tax will apply to all amounts exceeding RON 66,750, plus a RON 11,650 (~€2,300) one-time fee.
Licensing Requirements and Procedures for Online Gambling
First of all, only operators based in the EU or countries members of the EEA, including Switzerland, can apply for a license and authorisation. You only need one authorisation for all gambling activities you intend to conduct on your gambling platform.
Besides the initial requirements, online gambling licensing mainly involves meeting technical requirements. All applicants must have their IT systems tested by the approved testing labs with a Class II license by the ONJN.
Also, if the main gaming server is located outside of Romania, safe mirror servers need to be established in Romania so ONJN can monitor all activities. Companies not based in Romania must appoint a Romanian national as a representative.
All license applications will be resolved within 30 days from the moment of the application.
Summary
The online casino and gambling industry in Romania is booming. The country is known for its ultra-fast internet connection, which is one of the preconditions for establishing a stable and prosperous industry.
However, preparing all the documents and following the application process can be a daunting task. This is where GamingLicensing experts can kick in. We have prepared this guide to help you out by giving you an overview of the entire process, but if you reach out to us, we can provide additional advice and take you through the entire process.
Contact us through email or the form available on the site, and we’ll be in touch shortly.
