Sports betting market in Romania and the new vision of GSBET
The dynamics of innovation in the online market in Romania
By GSBET
The Romanian betting landscape has evolved significantly in 2023, challenging entrenched stereotypes in the approach of the actual betting agencies, on the “land based”. But despite complex legislative challenges and bureaucratic uncertainties, the Romanian market demonstrates remarkable resilience and adaptability.
The turning point was the outbreak of the pandemic, an event that, despite its catastrophic scale, sparked a growing affinity for online experiences. Before the pandemic, online gambling was already popular, but landbased restrictions and limitations have boosted interest, seeing a 300% increase in online gambling account openings.
Despite the challenges of 2020, characterized by the closure of betting centers and slot-machine halls and the suspension of many sports competitions, the gambling market has regained its momentum, returning to pre-pandemic levels and maintaining steady growth year on year.
The most frequent draft law, which is still being talked about in the market, the one initiated by the PSD, which eliminates land based locations from cities or limits them to a certain number of inhabitants, seriously contravenes the right of people from smaller towns to access this form of entertainment, perfectly regulated in Romania. We can’t help but wonder, what is the fault of those people that they were not born or live in bigger cities than the ones decided by the politicians? Based on which analysis is the operation of this economic activity allowed or not depending on the number of inhabitants? How do we determine who has and who does not have the right to have fun?
The alternative for these people will be to move to bigger towns or they will start playing from their phone to online. So the project is not meant to remove gambling from small towns, but to bring online to the villages!
Let’s not talk about the fact that the population numbers in the localities have not been updated for a very long time, which means that a locality that has recently developed as an economy, attracted new residents and achieved the performance of not losing those existing, to be affected by this at least fantastic regulation.
Therefore, the project, apart from the necessary populism in the pre-election year, will not remove gambling from the localities and from the habits of the players, but will leave it in the phone in their pocket, facilitating a 24/7 access. And this principle also applies to most other legislative projects in Parliament. It seems that, this year, the parliamentarians competed in developing projects aimed at this field (12!).
Until the finalization of this much-discussed draft law, the Romanian Government has already reacted to this trend with an increase in the gambling addiction prevention tax, increasing the annual contribution from 1,000 euro to 200,000 euro for operators authorized by ONJN, with the aim of combating the problem generated by excessive gambling and the financing of the state fund. Despite the fact that the organizers’ payments to the responsible gambling fund, collected over the years, already amount to approximately 8,000,000 euro and that no such actions were taken.
The tax increase was done without any justification, without any impact study justifying the 200-fold increase (eg: you can lay the foundations of a special addiction prevention center/regional centers, you can pay for psychotherapy sessions or any other project intended to help customers who request specialist help).
Also in the Ordinance of October 6, 2023, the Government of Romania decided that the license fee, a fee that is paid annually, should increase from 100,000 euro to 200,000 euro, despite the fact that it was increased 9 months before, from 25,000 euro to 100,000 euro, in the same way, without any justification. So an 800% increase in less than a year.
And the last change refers to the increase of the authorization fee, from 16% to 18% and then, in the same 9 months, to 21%. So the Romanian state considers that 21% of all money remaining from the actual game is justified and bearable by the operators. How did he come to this conclusion?
Unfortunately, all these tax increases of up to 200 times are not enough to be able to operate further and achieve a multi-year business plan. The level of the guarantee for the risk of non-payment, which is currently at the level of 100,000 euro, increases to 500,000 euro for the year 2024 and 1,000,000 euro for the year 2025. With application, attention!, from January 2023. That means the organizers have only two months to increase the guarantee fund from 100,000 euro to 500,000 euro. Where have you heard that before?
It should be noted that banks do NOT give letters of bank guarantee because the product is included in the Credits category, or credits are prohibited in the field of gambling by the BNR. It is also worth mentioning that any licensed economic agent who has debts of more than 30 days will have his license revoked, that is, the business will be closed, without being able to generate any more debts to the state budget. Or, if the level of monthly taxes of an economic agent is, let’s say, 60,000 euro, what sense does it make to block (if you have it from where!) 500,000 euro when after non-payment of the 60,000 euro you will be closed? The same judgment does not apply to large companies that have monthly debts of, say, 2,000,000 euro and this guarantee of 500,000 euro means absolutely nothing and will not hinder them in any way if they somehow become insolvent. The Romanian state will not have enough money in the guarantee to cover the taxes anyway.
Didn’t it make sense for this guarantee to be calculated two or even three months from the average fees of each individual company, taking into account an average value specific to each company, over the last 12 months? In this way, the risk of non-payment, at any level of an organizer’s receipts, would have been absolute 0.
However, this legislative change generated concerns among small and medium-sized operators on the Romanian market. Restrictions and increases in licensing costs create an ultra-competitive environment, jeopardizing the presence of all but the largest operators.
Sports betting market in Romania and the new vision of GSBET
GSBET’s strategic change
In 2023, the desire for innovation and the desire of passionate players from the offline market to embrace online is clearly emerging, creating a business dynamic increasingly oriented towards the continuity of player engagement. Rebranding operations and new partnerships are at the heart of this change, as well as the emergence of groups of entrepreneurs eager to maintain their presence in the sector.
Legislative and bureaucratic changes, along with new partnership scenarios, are fueling the demand for innovative platforms with an increasing focus on white labels. This solution is becoming increasingly attractive to many companies, allowing them to come online and mitigate economic exposure due to government developments.
GSBET, hitherto known for its presence in offline retail, is now gearing up to cross the digital threshold with an innovative online platform. This strategic step is motivated by the desire to adapt to market dynamics and offer customers a new gambling experience.
The company has several technology partners and is counting on their expertise and innovation to drive this change. Sorin Gheorghe, the founder and owner of GSBET, is the driving force behind this transformation, bringing to the sector his experience and vision for a technology-oriented future.
The transition from offline to online is crucial: challenges and opportunities
With the growth of online betting in Romania, the transition from offline to online is a strategic and bold move, but also inevitable, especially because it aims to change the habits of a well-established public and therefore delicate in its mechanics. This is why GSBET is committed to bringing customers from offline to online by offering its business partners a new affiliate program and marketing strategies aimed at the end player, using state-of-the-art platforms already present in various international markets.
Key to this transition is adaptability to players’ needs, guaranteeing a personalized gambling experience thanks to Gamification, which allows users to be engaged and retained with unique initiatives.
How: New affiliate program and Gamification
Activities dedicated to the online world of GSBET will begin in the first quarter of 2024. A revolutionary technological portal will be launched, with the help of which commercial partners will be able to enjoy all the new advantages dedicated to them, and at the same time, players will be able to enter in the application “GSBET” (the name will be revealed later) where Gamification, understood as the integration of playful and motivational elements in the betting dynamics, aims to make the user interaction more engaging, rewarding. All this while respecting all the principles of player protection, prevention of excessive gambling and social responsibility.
This often leads to sophisticated loyalty programs where players accumulate points or levels through regular betting. In exchange for these results, prizes, exclusive bonuses or free bets are offered. This approach will not only increase customer satisfaction, but also boost retention, as users feel motivated to stay loyal to the platform that provides tangible benefits.
In short, Gamification and affiliation are two powerful levers for the transition to online. Gamification makes the betting experience more rewarding for users, while affiliation provides an effective marketing channel.
Marketing and branding strategies: GSBET in a new context
GSBET recognizes that technological innovation alone is not enough. The marketing and branding strategy is focused on positioning the company as a modern and trusted brand in the online sports betting industry. An inspiration for users without underestimating the concrete needs of reliability and aggressiveness of its offerings.
Significant investments will be made to create market impact with partner and VIP collaborations, cutting-edge communication and targeted advertising campaigns. GSBET is committed to establishing itself in an increasingly competitive market through a reasonable presence.
The new visual identity: a logo that conveys clarity and belonging
Starting as a refresh of the existing GSBET brand, the new logo is proposed as the first key element of this change. Unlike the usual challenge of representing acronyms in logos, which often causes illegibility, the approach taken focused on improving readability. “Without a doubt, this is GSBET.”
Inspired by the dynamism and stereotypes of well-known brands, especially in the United States in the 1980s, the GSBET logo aims to communicate clarity and belonging without neglecting the importance of safety and reliability.
Graphic and dynamic elements inspired by famous brands like ESPN, CNN, CBS SPORT, FOX NEWS and sports brands like NIKE, ADIDAS, MIZUNO, help to create a hyper-readable logo with almost zero margin of error.
Color choice: meaning and readability
The selected colors, red, white and, in the background, anthracite black, not only follow a pattern of simplicity and recognition, but carry with them an intrinsic meaning of ease of reading. White and Red, the colors of luck in Romania, together with Anthracite Black, create a magical trio of colors that in the history of branding have proven to be extremely effective and that are easy to recognize and remember for consumers.
Pay Off: “Have Fun”
Pay-Off, “Have fun” reflects a key approach of GSBET in not focusing the user on gambling in a negative way, but as a playful exercise of great responsibility and reflection.
“The call to have fun for its users is a targeted strategic approach that the company wants to give to its audience with a strong signal. GSBET wants to maintain a healthy and light panorama, to make people understand the philosophy that is its own and which is part of its foundations”, comments GSBET CEO Sorin Gheorghe.
Brand refresh: modernity and innovation
GSBET’s brand renewal goes beyond aesthetics. This process is a strategic investment that aims to convey modernity and innovation. The logo, inspired, as already mentioned, by an era of technological renaissance and the beginning of the current digital era, fits GSBET’s vision to become a cutting-edge brand in the Romanian online betting market.
Through dynamic shapes that emphasize continuous movement (you can see the rightward tilt of the logo, synonymous with speed) and a clean style, the logo communicates GSBET’s commitment to provide a modern and non-stop experience, always in step with the needs of the technological market . The use of light and solid (strong) colors underlines GSBET’s intention to be a distinctive and easily recognizable brand in the online sports betting landscape.
We will retain the land-based venues and upgrade them to the highest standards, in line with recent legislative requirements, so as to show the market that we too understand the importance of greater investment in sports betting venues and, in particular, that gambling operators with years of experience behind them are open to change, adjustment and sustainable development, in accordance with the principles of social responsibility.
A future driven by innovation
With the support of new technology partners, the company aims to shape the future of online sports betting in Romania. The brand refresh is only the first step in this adventure, which will make GSBET a name in the online industry as well, offering an unprecedented gambling experience enriched by a modern visual identity. GSBET is set to capture the attention of a new generation of punters, promising fun, clarity and limitless innovation.
Conclusions
GSBET is preparing for a significant renewal of land-based locations to build its position on the Romanian sports betting market. With the shift from offline to online, the company is committed to providing an unprecedented gambling experience through a technologically advanced platform. With the support of new technological partners and the vision of founder Gheorghe Sorin, GSBET is positioning itself as a next-generation brand, ready to capture the attention of a new generation of bets.
About GSBET
Specialized in bookmaking, sports betting, virtual games, betting cafes, casinos, and betting shops we brought for the first time in Romania self-service betting terminals.
With vast experience in the sports betting industry, we operate more than 3.000 self-service betting terminals in more than 1.000 shops. Adding 20 years of experience, we can say that we are providing excellent service to our customers nationwide.
Sports betting market in Romania and the new vision of GSBET
The dynamics of innovation in the online market in Romania
