About the state of the industry with Dan Alexandru Ghita, President of ROMBET
Dan Alexandru Ghita: We do not ask for financial aid or tax exemptions!
The beginning of the year came with many novelties in the gambling industry, but, most importantly, it also brought the long-awaited reopening of traditional gaming locations.
We asked Dan Alexandru Ghita, President of the ROMBET Association, voted “Man of the Year 2020 in the Romanian Gambling Industry” for his opinion on all of this.
What would be the aspects to mention in the industry?
I would like, first of all, to list a few things that, on the one hand, are very important for public opinion and for those who do not understand the gambling industry so well, and on the other hand, which shows how strict and transparent are things in the industry.
The gambling industry is an industry that contributes to the state budget with an average of about 2 and a half million euros per day, almost 1 billion euros per year, which has about 45,000 employees and has a degree of collection on taxes almost 100%, tax evasion being zero.
It is a specifically regulated industry, which contributes 0.5-0.6% to GDP and needs dedicated attention when it comes to any change in legislation.
Employees and business owners in the field must have a clean record and have the approval of the police.
The taxes are collected in advance, it is like an investment made by the operator, later he will recover or not this money from the income he is going to have.
In the current context, we asked that these taxes be collected in advance every month and not for 3 months because you can no longer have predictability considering the current pandemic and the fact that no one knows how things will evolve. I addition there is always the scenario where you pay for 3 months and stay closed due to the evolution of the virus.
Another important aspect of the industry is that there can be no debts longer than 30 days, if they existed, the operator’s license would be suspended.
We contribute to the promotion of culture and the development of the film industry by redirecting 4% of the taxes collected to the state budget.
Revenues are declared in real time, the computer systems of the operators being connected to the National Gambling Office, the authority being able to verify at any time the situation of each operator in terms of income.
The industry contributes and promotes through specific actions responsible gaming programs, the social involvement being a very active one through donations in all fields where this is necessary such as health, education, culture, sports, etc.
How do you comment on the resignation of the ONJN president – Cătălin Constantin Voinea-Mic, how do you analyze his mandate and what do you think about the interim leadership?
I do not want to comment on his resignation or his term.
I am a construction man, I learn from the past but I always look to the future.
We are waiting for a new leadership with which through a constructive dialogue we can contribute with our expertise to the projects started, to initiate new projects that are pending, for example Responsible Gaming, and to clarify all the issues that have been gathered, and are not few.
Regarding the interim leadership, my opinion is that Mr. Teodor Tiberiu-Alin Ion is a person with experience in the field and who is open to dialogue, two strengths that are very important for this position and that make the difference between effective leadership and one without notable results.
About the state of the industry with Dan Alexandru Ghita, President of ROMBET
In the area of legislation, what is the industry facing?
First of all, I would like to recall the efforts we are making in the dialogue with the authorities to find the best solutions so that the industry does not suffer losses.
We are currently in advanced talks with the Ministry of Finance on some measures that would help the industry not to collapse.
I want to emphasize very strongly that these measures are administrative measures and not fiscal measures. We have not had and do not have any initiative to ask the state for financial aid or tax exemptions!
One initiative I would refer to, and which is a great danger to the industry, is that proposal which seeks a certain distance between gambling locations and educational institutions. The initiative is somehow strange, as minors are not allowed to enter gambling locations.
It should also be mentioned the initiative which provides for the obligation to store databases of self-excluded persons and to carry out the operation of knowing customers at the entrance to locations, which is almost impossible to do for practical reasons.
The technical order was recently issued by the president of ONJN, what can you tell us about this subject?
In principle, an order like this should be welcomed by the industry because it clarifies some very important things and does nothing but make it transparent and strengthen the industry.
Of course, anything can be improved, and this order could be complemented by some measures to come to the aid of both parties, state-private.
As I said before, we are in advanced discussions with the Ministry of Finance on several administrative scenarios, which are normal and prevent the closure of companies in the field, this closure means, in addition to business loss and loss of taxes and duties on the state budget.
In the business area, how do you see the gambling market?
The year 2020 has changed the ‘game’ for many people and for many industries. The gambling industry is no exception.
The application of social distance or the total prohibition of activity caused significant damage in all areas, and in the field of gambling this situation only led to retail activity at the edge of the abyss, the vast majority of companies not having a plan for immediate relaunch or development due to the fact that things are not clear and it is very difficult to predict what will happen in the near future.
This closed and open ‘game’ is very difficult to manage in retail, companies being subjected to a heavy test.
Probably this year will be a very difficult one for retail.
Things are a little different online because everything that means online has grown.
As I said before, my opinion is that the desire to socialize will always exist and when things get back to normal and restrictions are lifted, retail locations will recover. It is difficult to say how much they will recover and when they will reach the volumes before the pandemic.
The pandemic has determined some retail operators to obtain a license online, this move being somehow natural, activating in both environments gives you an advantage.
Technology plays a very important role in both retail and online, whoever invests in new and innovative solutions, in my opinion, will have a competitive advantage. The gambling market is in a continuous dynamic and depends largely on technology.
About the state of the industry with Dan Alexandru Ghita, President of ROMBET
I also want to remind you what plans we have for 2021, namely a 3-level approach: social responsibility, relaunch and legislation, all of which benefit both parties, the business environment and the state budget.
Social responsibility – we will try to get as involved as possible and deliver social responsibility programs to the highest standards.
Relaunch – we will try to get a package as dedicated to the industry as possible, which on the one hand will help a quick relaunch and on the other hand, will help to avoid situations in which companies could close.
Legislation – together with the decision makers we will try to correct and improve all the unclear or outdated aspects related to legislation that has been confusing the industry for some time and that can create the premises for abuses or approaches that are no longer adapted to the times we live.
I want to thank for their dedication and involvement to the team I work with and to all our collaborators who have a major contribution in all the projects we carry out. Together we are strong!
I want to end on an optimistic note, wish everyone every success and I am convinced that things will slowly recover.
“Life is that riding a bike, to be able to keep your balance you have to keep pedaling,” said Albert Einstein.
More news about the gambling industry you van read HERE.
