Start to online gambling regulation in Romania

Online gambling in Romania

Organization and operation of gambling in Romania is regulated by Government Emergency Ordinance no. 77/2009 on the organization and operation of gambling, approved with amendments and completions by Law no.246/2010, with subsequent amendments and the Government Decision no. 870/2009 approving the Methodological Norms for the application of Government Emergency Ordinance no. 77/2009 on the organization and operation of gambling.

Practical application of current legislation has demonstrated the need for change in order to improve current regulations to better meet social and economic realities of the situation prevailing in this extremely active domain.

In the gaming market, a major segment is represented by online gambling, covered by the Government Emergency Ordinance no.77/2009 on the organization and operation of gambling that does not work now, so that Romania did not receive income from this business.

According to legal regulations, the operation of online gambling requires an entity to conduct monitoring activities in this field and the organizers of gambling online monitoring activity can be performed, by law, by a private operator or by an authority or institution of the state.

To date, although there is the legal authorization and activity of online gambling in Romania, it was not granted any license for monitoring and reporting operator to achieve technical control, monitoring and reporting online gambling activity. Nor was identified state authority or institution that is assigned to monitor and report online gambling.

The model implemented in a number of Member States of the European Union, which successfully operates gambling, is the authority for monitoring and reporting gambling.

In the context of developments in the field of gambling, it is necessary to create a legal framework to enable more effective exercise of the functions of monitoring, surveillance, control in this area (moving from the current model towards a consolidated and integrated model), by establishment of a structure that has the following objectives:

• strict supervision of the field and the industry, without tax or direct tax influences, focusing particularly on at least the following:
  • the uniform, fair and non-discriminatory legal provisions in force in gambling, taking into account the principles of legality, impartiality, active role and willingness to maintain a moderate level of participation in gambling;
  • the protection of minors and other vulnerable groups in order to avoid their addiction to gambling;
  • protection of participants so that gambling should be held in a fair, accountable and transparent way;
  • ensure compliance with the general and special laws of the state;
  • prevent possible interference with sports results to protect the sport movement.
• increase budget revenues, in particular by preventing and combating unauthorized gaming and designing the necessary authorization for online gambling operators.

Between the gambling games regulated by the Government Emergency Ordinance no. 77/2009, is bingo game systems organized via television networks.

Organized bingo games systems via television networks (bingo TV) were permitted during 1992 to 2002. With the entry into force of the Government Decision no. 348/2002 amending Government Decision no. 251/1999 on conditions for authorization, organization and operation of gambling, they were banned until 23.06.2009, the entry into force of the Government Emergency Ordinance no. 77/2009 on the organization and operation of gambling, when returned to the organization and development of this type of gambling. According to Art. 20 of O.G. 17/2012 has been repealed, from the Government Emergency Ordinance no. 77/2009, the provisions relating to the regulation of bingo gaming systems organized through television networks.

National Office of Gambling

Draft emergency ordinance establishing the National Office of Gambling (Oficiul Naţional pentru Jocuri de Noroc, ONJN) and amending Government Emergency Ordinance no.77/2009 on the organization and operation of gambling, with subsequent amendments – published on 21.03.2013, proposes establishment in Romania of the National Office for Gambling, specialized body of the central public administration, with legal personality, responsible, among other matters, with the supervision of gambling activities, exercise technical control, monitoring and supervision of online gambling, consistent application of specific legislation in changing gambling, which is the institutional model successfully implemented by other EU countries.

Also, establishing of the National Office of Gambling will allow:

• increase of budget revenues, in particular by preventing and combating unauthorized gaming and designing the necessary authorizing operators of online gambling;
• improved coordination, cooperation and exchange of information between institutions with relevant expertise to ensure potential to reduce tax evasion in the field.
• better coordination and supervision and control management of gambling.

In the explanatory memorandum to the development of such legislation it is argued the need of:

• unitary regulatory harmonization,
• creation of new jobs in the current economic crisis in Europe,
• increase budget revenues by paying licensing fees and licensing, taxes on income from gambling, tax paid by the organizers of gambling, as well as payroll taxes paid by employees organizers,
• elimination of barrier prohibiting gambling bingo systems organized through television networks from the gambling market, this situation led to the creation of a non-competitive environment, because in the current legislation was upheld organizing bingo gambling in rooms,
• avoid migration of players to unregulated gambling
• given the popularity enjoyed by this type of gambling, it is reinstated in regulated gaming category the organized bingo gambling systems via television networks.