On the 24th of February the Romanian Government has changed and amended the implementing rules of the law which governs on the organization and operation of gambling in Romania. The changes and amendments were added for both the online and the land-based rules in order to encourage economic operators in the industry to obtain a license in the Romanian market.
The new regulations establish instruments that ensure compliance of gambling operators and subsequently controlling the way of their application, consistent with the objectives of consumer protection, public security and compliance of tax laws.
Specifically, through the Decision which has been adopted on the 24th of February, there is a detailing of the criteria that operators must meet in order to obtain a license and an operating permit. This is in regards to the good development of their gambling activity, both for traditional and remote on the territory of Romania and includes online games as well.
Regarding remote gambling, the Normative Act defines and establishes the conditions of organization and operation in Romania. Remote operation is allowed only for economic operators registered in Romania or in a Member State of the European Union, a signatory State to the Agreement on the European Economic Area or the Swiss Confederation, which owns an organization license and operating permit issued by The National Office of Gambling(ONJN) in Romania.
Registered and authorized operators outside of Romania are obliged to designate an authorized representative in relation to the competent authorities of Romania.
In regards to setting the stage for stability of their business, licenses for the organization and authorization to conduct gambling activities are granted individually, are non-communicable and are valid for a period of 10 years from the issue date. Exception is made for the temporary gambling activities, where the validity of the license and, respectively, the operating license is granted for 3 a month period, starting from the date of issue.
The Methodological Norms also define and provide technical conditions of operation and, in addition to the Order of the President of Authority, determine the conditions for inclusion in a “black list” of sites / platforms / unauthorized gambling applications of operators who have conducted or promoted unauthorized remote gambling in Romania. Inclusion or exclusion of operators in this list is made by the Supervisory Board of ONJN(NGO)’ decision. The decision will be implemented mandatory and will be communicated to the all network providers and electronic communication services, via email or by posting on the ONJN(NGO)’ website: www.onjn.gov.ro.
Based on the obligations chapter, the operators should also take into account that the promotion of their activities are in line of respecting the principles of the protection of minors. This means that the promotional materials should not be placed within or near educational institutions, or socio-cultural/religious establishments and should contain a visible sign that bans minors to participate in gambling.
The value of stakes, the percentage of the total turnover amounts that were played, or the value of prizes for those games are considered for a minimum gain, of all proceeds must be displayed in Romanian language and in visible places. The stakes, limits and minimum percentage of the winnings are imposed both for slot machines and for new types of equipment (AWP-game machines with limited risk).
The Normative Act also clarifies the methods of payment for the obligations to the state budget for operators in the sector and are establishes specific deadlines for paying taxes. In addition, the enactment establishes general minimum percentage gain, with the role of ensuring consumers benefit by this imposing certain of winning. The Central Fiscal Authorities will inform the ONJN(NGO) about the failures that were caused by the operators regarding their declarations and payment obligations. The ONJN(NGO) will also be informed about the unsettlement in time or about the full value of collateral the covers the risk of default obligations to the general consolidated budget.
The Decision also establishes the penalties and contraventions the economic operators that are involved in the gambling industry would face if they are not complying with the law. Contraventions/Misbehavior is punishable by a fine between 10,000 and 50,000 lei(aprox. €2200- €12,000), depending on the seriousness of the facts and the consequences resulting therefrom. The new amendment introduces the possibility to pay half of the minimum fine set by the Methodological Norms within 48 hours from the drawing of the report of the offense or, as applicable, prior of its communication.
Parallel with the fining of the sanction, the official examiner will propose the Supervisory Committee, depending on the produced consequences and the behavior of the analyzed operator, according to the historical and potential risks, measures of suspending the approval / authorization to operate in the field of gambling up to 6 months for each game in the middle of some or all means playing situated in a location, or for location / specialized locations as well as areas / platforms of operators.
The rules will be completed in accordance with legal orders and instructions of the President of ONJN(NGO).
Mentionable that the Normative Act approved on the 24th of February by the Romanian Government is also considering changing the organizational structure of the National Office for Gambling (ONJN)(NGO) to improve its activity.
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The Government’s Decision adopted on the 24th of February amends the implementing rules of the law on the organization and operation of gambling, as amended in 2014 and 2015 successively.
