• Romania Creates Questionable Retroactive Tax Policy for Online Gambling

    19 May 2015

    Romaniataxpolicy

    Romania has been a trouble area for online gambling legislation for a while, and for the past several years, they have been trying to get together some kind of comprehensive plan to create a better situation for licensing and regulation of the industry. All of that is finally over, and all that's left is the president's signature. However, one particular part of the soon-to-be law involves retroactive taxes for companies that were operating in the country since 2009.

    The Retroactive Tax Choice

    The idea here is that Romania hasn't ever had a legal framework for online gambling, and this means that companies were able to offer their services to Romanian citizens without any kind of government interference. However, it also meant that the Romanian government was not getting a piece of the pie. Along these lines, they think that it's only fair that they receive 20 percent of revenue for play in their country since 2009. However, there are some major problems with this approach, and this short-sighted thinking will hurt them in the long run.

    Operator-Friendly Environment

    If the whole point of regulating the industry is to generate revenue for the government, then they'll want to have as many high-quality operators as possible applying for licenses. When you create an environment that's friendly for operators, then better operators apply for licenses, and this means more of a draw for players to enjoy games regulated in Romania. However, when you provide incentives for the better operators to stay out of the country with things like retroactive taxes, then you create a situation where the better operators do not have Romanian licenses. In turn, this provides incentives for players to bet with unlicensed sites, and that will not build revenues for the country.

    Enforcement Issues

    Once this overall framework is in place, they're going to be looking at strong methods of enforcement like website blacklists and interfering with transactions. They're really taking their licensing seriously, but it looks like they're going to provide the wrong types of incentives for their new regulated environment to be successful in the long run since all of the better providers will have plenty of reasons to steer clear.

    Related News

    • 11 September 2017

      Mr Green Proactive on Problem Gambling; New Tool

      Mr Green Casino announced today that is has launched a predictive tool to help players gain insight into potentially risky gambling behaviors. Casino managers can also use the Green Gaming tool to detect when players may be moving from healthy entertainment into risk. The tool will first be available to Mr Green's UK customers before rolling out to other markets in the fall. Per Norman, CEO of Mr Green & Co.

      Read full article
    • 05 September 2017

      Romanian Gaming Licenses Awarded to Kiron Interactive

      Romania's national regulator, Oficiul Naţional pentru Jocuri de Noroc (ONJN) has awarded a Class II license to virtual sports company, Kiron Interactive. Kiron now has the right to distribute their virtual sports and numbers games in the newly regulated marketplace of Romania. The license grantor, ONJN regulates all forms of gambling in the country since Romania announced in 2015 that the country's online and on land gambling laws would be reformed.  Leader in Virtual Sports Products

      Read full article
    • 24 August 2017

      What is the Internet Gambling Amendment Bill?

      All legal online casino gambling and real money poker play will soon become a thing of the past for Australians. On August 9 the Senate passed The Interactive Gambling Amendment Bill 2016. The writing had been on the wall since the bill was introduced on the floor of the House of Representatives of the Australian Federal Parliament on November 10, 2016. The bill amended the Interactive Gambling Act 2001 (IGA).  Where did the IGA Amendment Bill Come From?

      Read full article