Romania moves to ban gambling venues in small towns
By Shadrack Kairu
Stricter gambling laws are coming to Romania. The lawmakers have approved Prime Minister Marcel Ciolacu’s executive order that bans gambling venues in small towns and villages with populations not exceeding 15,000 residents. The so-called “law on slot machines” was reportedly passed by the Chamber of Deputies via a unanimous vote. Some 243 deputies voted in the ban’s favour, four were absent, while two did not vote. As traditional gambling venues face these new restrictions, many players may turn to online casinos as an alternative, seeking a regulated environment to continue their gaming activities.
This legislation is one of its kind in the history of gambling in Romania. It states that slot machines and gambling facilities should not appear near remote areas and sparsely populated towns. It effectively criminalizes gambling in localities with populations of less than 15,000 people.
Two main reasons given by the parliament were considered critical in justifying the passing of this legislation. These include tackling the issues of gambling addiction and mitigating the potential consequences posed by unregulated gambling in Romania.
Through this legislation, first and foremost, policymakers hope to reduce excessive gambling. Additionally, they aim to protect vulnerable communities from exploitation and put brakes on the rapid proliferation of gambling venues, primarily in small localities. As reported, this ban will affect almost 90% of all localities in Romania, signalling a noteworthy shift in the country’s approach to regulating its gambling sector.
Stats on gambling in Romania
Gambling in Romania officially took off in 1906 when the country installed its first democratic government. The dictator’s regime was overthrown to pave the way for introducing a liberal economy. Right now, gambling in this southeastern European country is conducted on a large scale.
The National Gaming Office, the state body that registers and approves the sector, states that the Romania gambling market consists of about 12,000 land-based gambling venues. It’s in these facilities that sports betting services, casino games, lotteries, bingo, and other gambling forms, are offered to the public. These venues pay taxes to the government in the form of license and advertising fees and ticket sales. The proceeds are used to fund public works and services.
It’s worthwhile to note that online gambling in Romania became legal in 2010. With that, trusted internet operators were entitled to receive a government license. Online gambling in the country had reached new levels by the early 2000s.
Online gambling operators contribute tax revenues to the government as do land-based venues. But in addition to annual licensing fees, online providers are to pay authorization fees, responsible gaming contributions, online gamers’ winnings, and miscellaneous fees.
Romania’s revenue in the online gambling market is projected to reach $809.50m in 2024, according to Statistica, with an annual growth rate of 5.6% from 2024-2029. It will thus result in a projected market volume of $1.063m by 2029.
Specifically, the user penetration in the online gaming market will hit 3.5% in 2024, indicating a remarkable surge in online gambling activity.
The proliferation of gambling across the country has prompted the government to tighten its gambling regulation measures. In 2015, Romania introduced its first comprehensive gambling law. This was intended to address the rapid spread of gambling and to ensure a secure, fair, and responsible gaming environment for its citizens.
As if that was not enough, in October 2023, the Romanian government introduced newer, stricter sets of restrictive measures for the gambling sector. Notably, the Ministry of Finance announced a huge hike in license fees for gambling operators. Operators will now pay €500,000/year for an online casino license, €200,000 for a lottery license, and €100 per machine for video lottery terminals licenses. Others are casino licenses costing €4,000 per table, bingo gaming halls costing €5,000, and poker costing €5,000 per club. Licenses for telecast bingo games will now cost €500,000.
But even as the government rolls out all these measures, there’s no recent data to show exactly how many Romanian citizens suffer from gambling addiction. According to Euronews, the last survey was reportedly done in 2016 and found that there were an estimated 100,000 addicted gamblers in Romania. However, the source cautions that the number today could be even higher.
Recent research by Save the Children shows that 1 in 7 children across the country spends money on gambling. Also, it shows that at least 10% of Romanian children have a parent who spends money on gambling.
What Legislators say about gambling
Proponents of the law say that the passing of the legislation is a major milestone towards curbing the negative influence of excessive gambling on vulnerable populations. Following the law’s passing, the PM took the opportunity to declare the coalition government’s victory over illegal gambling operations reaching remote and densely populated country areas. He reportedly said that this marks the end of the “good old days” for illegal gambling facilities as the ban will likely affect nearly 90% of such establishments in Romania.
Alfred Simonis, the leader of the Social Democrats, echoed the PM’s sentiments. “It is the first law adopted in Parliament in 30 years against this mafia that has controlled the political world until now,” he said.
He stressed the need to take decisive actions in controlling the pervasive influence of gambling in Romania. “Right now we are fighting an industry that has a total turnover of €10-12 billion”.
Meanwhile, some factions raised questions over the manner in which this legislation was formulated. Descending voices within the parliamentary chamber said the government could’ve taken stricter measures to address the detrimental impacts of gambling on society. They criticize the government for not consulting with stakeholders prior to its implementation or, respectively, question how the population figure of 15,000 was reached. Some even accuse the authorities of collusion with the gaming sector due to the perceived leniency of measures taken by the government.
Ionut Mosteanu, the leader of the opposition USR, is on record saying “They thought that slot machines only damage 15,000 people”. He further stated, “There was not even a debate to see how many townships qualify for this 15,000. Why not 16, 17, why not two million and you would ban them definitively?”
On the other side, industry players from the gambling sector remained optimistic that, through this new piece of legislation, the authorities will effectively stamp out the black market, which they said thrives in the absence of legal gambling options.
It is worth noting that this legislation was first introduced on 6 October 2023. Under the Romanian Constitution, it was supposed to go through both the Chamber of Deputies and the Senate for approval. However, the government through PM Ciolac signed an Emergency Ordinance that allowed the bill to move to the lower house of parliament for fast tracing.
Upon the parliament’s discretion, the legislation could be approved as it is, approved with amendments or rejected altogether. If rejected, it would no longer be effective.
Now that this ordinance has been approved, it rests with Romanian President Klaus Iohannis, who may decide to put it into law or send it back to parliament. If approved, the law states that it will take effect within 10 days of being officially enacted.
According to reports, once this ban comes into force, it will affect the operations of Romania’s 27 licensed sports wagering operators. Even market leaders such as SuperBet, Rizio, StanleyBet, Mozzart Kladionica, and Fortuna Entertainment, will be affected.
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