The Changes of the legal regime after the Government Emergency Ordinance no. 82/2023
By: Teodora Luca, Senior Lawyer
Mihai Cătălin Luca Law Office
Romanian Prime Minister has publicly declared that it is a high priority of the State to amend the legislative framework for the operation of gambling in Romania.
Following the declaration, Draft Law was published for transparency on the 04.10.2023 and the Government has approved fast, through an emergency procedure the Emergency Ordinance for the amendment and completion of the current legislation for gambling activities.
The Official Act is now available, it is already officially published; as announced, the Draft Law was approved without major changes.
The Changes of the legal regime target mainly the financial obligations of the companies, as follows:
I. SLOT MACHINES
Contribution to the fund against gambling addiction
i) For the slot machines authorised during 2023, companies shall be obliged to pay an extra contribution of 100 Euro, proportionated with the period remained until the end of the year.
Calculation: 100 Euro: 12 months = 8,33 Euro/ machine x Y (number of months until the end of the year 2023) x Z (number of machines authorised in 2023).
ii) For 2024, the contribution shall have the value of 300 Euro/machine
iii) Starting with 2025, the contribution shall have the value of 500Euro/machine
Except 2023, for which the amount will be due immediately after the publication of the Law, starting with 2024, the contributon is due yearly, in advance, on 25th of January of every year; for the machines authorised during the year, the contribution is due within 10 days after the approval of the application.
With regards to payment of the contribution (deadlines), it is expected that the Gambling Authority will issue instructions/clarifications.
License tax – 150.000 Euro
Tax is due on yearly basis, not later than 10 days before the expiration of the license.
Authorisation tax – 5300 Euro/ machine
Tax will be due on monthly basis:
For the first month – not later than on the 25th of the month following the approval; authorisation will enter into force as of the 1st of the month following the payment
For the other 11 months –in advance, not later than on the 25th of the month for the following month.
Companies that will perform the payment in advance for the whole period of valability of the authorisation shall benefit of discount of 10% of the tax. Payment must be executed not later than on the 25th of the month following the approval of the application.
Vice tax – 500 Euro/machine
Tax will be due on monthly basis.
For the first month – not later than on the 25th of the month following the approval of the application;
For the other 11 months –in advance, not later than on the 25th of the month for the following month.
No discount is available for the vice tax.
Guarantee fund
For 2024, the company shall constitute the guarantee fund, depending on the turnover, as follows
Turnover (EUR): Up to 5 million
Guarantee (Eur): 500.000
Between 5 million and 20 million: 800.000
Above 20 million: 1.000.000
Starting with 2025, the level of guarantee shall have the value of 1.000.000 Euro, regardless of the level of turnover.
Guarantee may be constituted by:
– Deposit to the State Treasury
– Bank Guarantee Letter
– Insurance policy, issued by a company incorporated in EU, EEA or Swiss Confederation.
ONJN shall ensure that all slot machines are included in a registry that will be available publicly that will report the name and details of the licensed companies, address of the venues and all machines that are operated in each location.
ONJN shall create and keep a registry of self-excluded players; requests of the players will be submitted directly to ONJN or to the operators, the latter being obliged to notify the authority about such request within 2 business days.
II. ONLINE GAMBLING
1. Online gambling activities will be permitted only to Romanian companies or to companies from EU or EAA that have a permanent establishment registered in Romania
Licenses that are held by foreign companies shall be transferred to Romanian companies within 6 months period after the law will become effective.
Within 6 months the companies holding the license shall register the subsidiary or the permanent establishment and shall request the transfer of the license.
The procedure regarding the license’ transfer shall be regulated by ONJN, by Presidential Order, within 15 days since the new law will become effective.
Contribution to Responsible Gambling Fund – shall increase to 500.000 Euro
Guarantees:
Online betting:
Starting with 2024:
Turnover (EUR): Up to 5 million
Guarantee (Eur): 500.000
Between 5 million and 20 million: 1 million
Above 20 million: 2 million
Starting with 2025, the level of guarantee shall be 2 mil. Euro, regardless of the value of the turnover.
Online casino:
Starting with 2024:
Turnover (EUR): Up to 5 million
Guarantee (Eur): 1 million
Between 5 million and 20 million: 2 million
Above 20 million: 5 million
Starting with 2025, the level of guarantee shall be 5 million euro, regardless of the value of the turnover.
Guarantee may be constituted by:
– Deposit to the State Treasury
– Bank Guarantee Letter
– Insurance policy, issued by a company incorporated in EU, EEA or Swiss Confederation.
License tax – value of the license tax shall be 300.000 Euro/year, regardless of the turnover of the company
Authorization tax – value of the tax shall be reduced to 21% of GGR, but the minimum value shall be increased to 400.000 Euro/year
Outdoor advertising shall be limited to 35 m2/ billboard.
iv) Class II license
License tax – 20.000 Euro/ year
Tax is due yearly, not later than 10 days before the anniversary of the license.
Contribution to RG Fund – 15.000 Euro / year
Tax is due on yearly basis, not later than on the 25th of January.
The Government Emergency Ordinance entered into force on October 6, the day when it was published in the Official Gazette.
