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Romanian authorities introduce changes to taxes and fees for the gambling industry

July 2022

The taxation regime in the gambling industry has undergone significant changes following the adoption by the Romanian Government of Government Ordinances no. 15/2022 and 16/2022, respectively, in July 2022.

An outline of the main provisions introduced by the Government Ordinances no. 15/2022, amending Government Emergency Ordinance no. 77/2009 on the organization and operation of games of chance these new government ordinance, is included below:

  1. Advertising contracts for the promotion of gambling brands, platforms, applications or activities through the placement of advertising messages in localities and on public roads, or using a television service, as well as any act modifying the initial value, must be communicated by the operator to the Romanian National Office for Gambling (Oficiul National pentru Jocuri de Noroc) (“NOG”) within five (5) working days from the date of signing. Contracts concluded with sports entities or federations which entail advertising in stadiums or sports halls do not fall under this requirement;
  2. Operators owe a 5% tax (please note that this is a new tax) from the value of the above advertising contracts, payable by the 25th day of the month following the one during which the contract is concluded. In case of those contracts entailing recurring payments/installments, the payment obligation of the new tax is due in the last day of the month when the installment is due. The tax authority must issue an order regulating how this new tax needs to be reported (technically, this order should be issued within 30 days as of Monday, June 18, 2022). For contracts that are already in place, the new 5% tax shall be paid within 30 days from the entering into force of this order to be issued by the tax authority. It is however unclear at this stage who should pay this tax (e.g., operator, advertising agency etc.);
  3. The definition of remote casino games is modified to clarify that the games cover also online slot-machine gaming and may be performed via one or several platforms (the new provision comes to correct a mistake of the legislator back in 2015 when online slots have mistakenly been left out of the definition of casino games – in practice they were however included in this category);
  4. The new ordinance also completes and further details the regime for raffle/tombola games (in the past the NOG pointed out that the legislation needs to be updated to be able to issue licenses for this type of game);
  5. The deadline for the annual responsible gambling contribution (“RG”) is changed: now the deadline is January 25th of each year for existing licensees. For operators obtaining a new license, the RG contribution for the first year is due within 10 days from the approval of the application;
  6. The regime for notifying changes to the initial licensing data is changed. The new ordinance states that this obligation applies to both B2C operators and B2B providers. Further on, the ordinance sets forth that operators/providers must notify “significant changes” and that the NOG must issue within 30 days an order clarifying what “significant changes” mean;
  7. The regime/concept of “blacklist” is expanded to “websites / platforms / brands / trademarks / logos / gambling applications” of unauthorized operators (until now, only websites were included on the black list). Same goes for “websites / platforms / brands / trademarks / logos / gambling applications” that promote unlicensed gambling;
  8. It is further clarified that the sanctions of cancellation and revocation applies also to B2B providers (until now the texts referred expressly only to B2C operators). In case of cancellation, the new ordinance stipulates that the amounts of money obtained shall be seized;
  9. The ordinance introduces an exception from the general regime of minor offenses in the sense that the sanction of warning as well as the benefit of settling a fine by paying half of the amount is not applicable for offenses provided by the gambling legislation.

For ease of reference, the new taxes adopted for the online gambling industry, as well as the increase of the current taxes, are listed in the table below.

LawChange / New level of tax
GO no. 15/2022 amending GEO no. 77/2009 on the organization and operation of games of chance Authorization tax (B2C operators)
 
Monthly authorization tax: 23% on GGR (increased from 16%).
 
! Besides the monthly authorization tax, operators need to pay also an advance authorization tax for every new year of authorization, in the context of the authorization renewal procedure.
 
Based on the practice enforced by the regulator so far (even though not expressly backed up by the law) the amount of this advance authorization tax (correlated with the new levels of taxation) should be:
 
EUR 120,000 in case 23% of the GGR obtained in the 11th month of the authorization year does not exceed EUR 120,000
 
or
 
 23% of the GGR obtained in the 11th month of the authorization year in case 23% of this GGR exceeds EUR 120,000
GO no. 15/2022 amending GEO no. 77/2009 on the organization and operation of games of chanceLicense tax (B2C operators)

Turnover of (EUR/year):

up to 500,000: EUR 15,600 (increased from 6,000 EUR)

500,001 – 1,000,000: EUR 62,400 (increased from 24,000 EUR)

1,000,001 – 5,000,000: EUR 156,000 (increased from 60,000 EUR)

5,000,001 – 10,000,000: EUR 249,000 (increased from 96,000 EUR)

exceeding 10,000,000: EUR 312,000 (increased from 120,000 EUR)

Please note that, based on our experience, the regulator considers that the turnover represents the amount of the total bets on a global level of the licensed operator.
 
License tax (B2B providers)
 
EUR 9,500/license/year (increased from EUR 6,000/license/year)
GO no. 15/2022 amending GEO no. 77/2009 on the organization and operation of games of chanceAdvertising tax (B2C operators)
 
5% of the value of the advertising contracts for TV and outdoor (sport sponsorships or online advertising not included).
GO no. 15/2022 amending GEO no. 77/2009 on the organization and operation of games of chance
Tax for documentation analysis (reauthorization application)

150 EUR payable at the moment of submitting the request and documentation for granting the authorization to operate
GO no. 15/2022 amending GEO no. 77/2009 on the organization and operation of games of chanceTax for documentation analysis (integration of new games or recertification of games)

EUR 150 for each request/application, payable at the moment of submission.
GO no. 16/2022 amending the
Fiscal Code
New level of taxation for players revenues

Gross income thresholds | Tax (RON)

* up to 10,000 (including): 3%
* over 10,000 – 66,750 (including): 300 + 20% for the amount exceeding 10,000
* over 66,750: 11,650 + 40% for the amount exceeding 66,750

For any further details on the topic, please contact:


Cosmina Maria Simion
Managing Partner

Ana-Maria Baciu
Managing Partner

Andrei Cosma
Managing Associate

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