Romania revamps its gambling legislation

The revamped legislation, published by ONJN (Oficiul Național pentru Jocuri de Noroc) on Monday, February 29, sets the rules and regulations which operators must comply with in order to obtain a license and authorization to ensure the good development of their remote or land-based operation.

Regarding remote gambling, the ONJN has stated that operators wishing to offer their services to Romanian gamblers must be residents of Romania, EU or EEA, they must obtain the relevant licenses and authorizations from the ONJN, and they must appoint a local authorized representative to deal with the competent authorities in the country.

The gaming and iGaming licenses are granted individually for a 10-year period, and they are non-transferable between operators. For temporary games, the license and authorization are granted for a period of 3 months. Once the certification has been obtained, it must be displayed either on the operators' website or in their land-based venue.

There is also a requirement that the value of stakes, the prizes for games and the value of prizes for those games that need to have a minimum payout percentage out of the total gains, be clearly displayed in Romanian language in prominent places. The stakes and limits are established both for slot machines and for AWP (Amusement with Prizes) machines. Moreover, the normative document also establishes minimum win percentages for these games in order to assure gamblers of a certain benefit.

“

“

One important point in the regulation is related to the promotional material operators are using to further their business. This must be done in strict compliance with the principles regarding the protection of minors.

”

The decision mentions also clear timetables for the paying of taxes and obligations to the state budget, as well as payment options available to the companies. The sanctions applicable to operators who do not respect the regulations are also listed, the fines ranging from RON 10,000 to RON 50,000 (approximately EUR 2,000 to EUR 11,000) depending on the contravention and on the consequences thereof. Nonetheless, if such operators provide payment within 48 hours, they will only need to pay half of the fee. Depending on the seriousness of the act, other sanctions, such as temporary suspension of license for up to 6 months, may also apply.

Reference is further being made to the blacklist which has been compiled, with more than 500 illegal online operators already on it. The Romanian internet service providers have the obligation to block access to all the names found on the blacklist. In what concerns land-based gambling, the ONJN has a centralized information system which allows it to monitor for example slots machines or betting operations at all times, making the organizing of illicit activities practically impossible. This centralized information system for land-based venues, together with the blacklisting of illegal online operators is especially opportune as it helps create a transparent industry which will benefit both operators and gamblers.

One important point in the regulation is related to the promotional material operators are using to further their business. This must be done in strict compliance with the principles regarding the protection of minors. Thus, no adverts or other marketing material must be displayed nearby schools, socio-cultural or religious establishments and such material must specifically forbid the participation of minors in gambling activities.

Another important provision of the legislation mentions the initiative to establish a foundation for social responsibility and a fund for the prevention and combating of gambling addiction, this being an area that has received increased attention over the years. Important organizations such as The Slots Organizers' Association ROMSLOT (Asociația Organizatorilor de Sloturi) and Romanian Bookmakers, which is the association of Romanian sports betting operators, already support the development of a similar program Joc Responsabil" (Responsible Gambling), aimed at offering as much assistance and help as possible to those fighting with gambling addiction.

The legal requirement that operators must support such foundations, as well as the demand that all gambling websites display their policy related to gambling addiction and allow access to a self-assessment tool, represent an important step further in modernizing Romanian online gambling and changing the negative view that some still have of it.

The undergoing changes in legislation have been a direct consequence for the Romanian National Lottery's decision of suspending pool betting services across the country. The National Lottery has announced on its official website that it will temporarily suspend its Pronosport and Prono_S services until the relevant licenses and authorizations will be obtained as per the new amendments to OUG 77/2009.

On February 29 , The National Lottery has assured its customers that the necessary applications for the said licenses have already been submitted to the ONJN so that they can continue offering its services to punters in the shortest time possible.