• 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

    • 02 November 2017

      Malaysia Cracking Down on Illegal Gambling; New Law Possible

      Malaysian authorities are making good on their promise to crack down on illegal gambling operators, including online providers. The country's Common Gaming House Act 1953 was created before the advent of online gaming, and although still considered illegal, some operators have found ways to get around the act by using family entertainment center licenses and other means. One politician wants to close any loopholes that might exist. Latest Crackdown

      Read full article
    • 02 October 2017

      CasinoCoin Advisory Board Adds Senior Execs

      Last month it was announced that CasinoCoin (CSC) had relaunched and the Double C Foundation had been created in the Isle of Man to support the development of CasinoCoin. Today we learn that several senior industry professionals have joined the foundation's advisory board. What is CasinoCoin? CasinoCoin is a cryptocurrency, much like Bitcoin, that was created specifically for the online gambling industry.

      Read full article
    • 29 September 2017

      Bede Gaming Pursuing Future Partnerships

      Leading software giant in the gambling industry, Bede Gaming, has directed its forces on building stronger relationships with key operators, deeply widening the business network and strengthening its position. By working closely with proven casino establishments, the company is due to ensure higher performance ranks and further adjustment of the award-winning gaming platforms. Back-up Approach For Operators

      Read full article