The 4H view: Everything you need to know about Romania

EGR has partnered with 4H Agency to bring its readers a series of long-form articles on the requirements and key facts and figures for a host of emerging markets throughout the world.

Tapping into 4H’s talent pool of expert, the articles will outline the regulatory framework and entry requirements for interested parties, as well as an insider’s view on how the market could shape up in the coming years.

Here, the series continues with Romania, with commentary from 4H’s head of Eastern Europe desk and partner Ivan Kurochkin.

Market overview

Romania, a country in southeastern Europe, is bordered by Ukraine to the north, Moldova to the northeast, the Black Sea to the southeast, Bulgaria to the south, Serbia to the southwest, and Hungary to the west. 

As of 2024, the country’s population stands at approximately 19.06 million people, with a GDP of $351bn (£271bn). Romania ranks 63rd in Transparency.org’s Corruption Perceptions Index with a score of 46, placing it near Kuwait and Montenegro.

Gambling in Romania was legalised in the early 1990s, following a period of prohibition under Soviet influence. The first land-based casino opened in 1991 and online gambling became legal in 2010, allowing operators to apply for government-issued licences. 

But it was as recently as 2013 that Romania established a dedicated body, the National Gambling Office (ONJN), which took on the responsibility of overseeing and regulating the industry. This marked a significant step in structuring and further legalising the gambling market,

In the last year, Romania’s gambling market has shown consistent growth, driven by both land-based and online operators. Amendments to gambling regulations in recent years, particularly in 2023, have influenced the market dynamics. Despite some heavy financial burdens imposed on licensees, the market continues to attract foreign operators.

Regulations

Licence types

In Romania, licences are available for various gambling verticals, including:

• Land-based casinos
• Online gambling
• Land-based sports betting
• Slot machines licence
• Lottery games (monopoly of Loteria Romana)

In addition to licensing, there is an authorisation regime that varies by the type of activity. For instance, slot machines require individual authorisation for each machine, whereas land-based casinos receive authorisation for the specific location where they operate.

Licence requirements 

General requirements for both land-based and online gambling licences include:

• B2C operators must either be based in Romania or in the EU, EEA or the Swiss Confederation
• Non-Romanian operators must establish a permanent establishment in Romania
• Applicants must provide clear criminal certificates and identification of all beneficial owners and prove that resources come from legitimate and traceable sources
• Authorisation shall be obtained and paid annually for each specific gambling activity
• Certification is required for random number generators, the registration and player identification system, payment methods and, depending on the situation, game rules and terms and conditions
• If the primary server of online gambling operator is located outside Romania, mirror servers must be placed within the country to allow government monitoring
• Minimum number of slot machines to be located in the slot machines hall or casino is 75.

Licence costs and taxation

Land-based casinos (Term: 10 years)

• Annual licensing fee: Approximately $160,700
• Bank guarantee: Approximately $3.17m
• Taxation: Approximately $74,120 per table in Bucharest and roughly $42,360 per table outside Bucharest

Online gambling (Term: 10 years)

• Annual licensing fee: Approximately $323,000
• Bank guarantee:
  • From about $540,000 to $2.1m for online betting depending on the income level (will be $2.1m from 2025 without consideration of the income level)
  • From about $1m to $5.4m for online casinos (will be $5.4m from 2025 without consideration of the income level)
• Taxation: 21% of GGR (minimum of roughly $430,000 per year); 2% monthly tax on total participation fees (deposits)

Land-based sports betting (Term: 10 years)

• Annual licensing fee: from $68,640 to $211,200 depending on the types of betting
• Bank guarantee:
  • From approximately $540,000 to $1m depending on the income level (will be $1m from 2025 without consideration of the income level)
• Taxation: 21% GGR but not less than either $211,200 (fixed odds betting) or roughly $126,720 (mutual betting)

Slot machines licence (Term: 10 years)

• Annual licensing fee: Roughly $160,000.
• Bank guarantee:
  • From about $540,000 to $1m depending on the income level (will be $1m from 2025 without consideration of the income level)
• Taxation: Approximately $5,600 per slot machine; additional ~$540 per machine and 4% GGR for VLT machines

Advertising restrictions

Key advertising restrictions in Romania include:

• Sending unsolicited electronic messages containing information about games and outdoor advertising for gambling exceeding 35 sq m in size is prohibited
• Sending advertising materials to self-excluded players from online gambling is prohibited
• Advertising of gambling services that are not licensed in Romania is prohibited
• Outdoor advertising cannot be placed within or near educational institutions, socio-cultural or religious premises
• Bonuses granted by online operators can only be advertised on limited channels (ie, the operator’s own website(s), licensed affiliate’s website(s), or messages to active players from the operator’s database)
• It is forbidden to display the values or goods granted through bonuses, promotions or jackpots outside gambling locations
• Advertising cannot be included in programmes aimed at minors or incite them to participate in gambling activities

AML regulations

In Romania, all payments made to players participating in online gambling must go through a payment processor that holds a relevant licence from the ONJN, even if that payment processor is already approved under other financial regulations.

When it comes to preventing money laundering, the ONJN is the main authority overseeing compliance in the gambling industry. According to the AML rules, operators have a few key responsibilities:

• Dedicated AML personnel: Operators must assign specific staff members to handle AML obligations. These duties should be part of their job descriptions, and operators must provide regular training on AML procedures, both at the start of employment and at least once a year. Authorities can request proof of this training at any time.
• Recordkeeping: All AML-related records and documents must be kept in a way that can be used in legal proceedings and must be made available to the authorities upon request.
• Know Your Customer (KYC) measures: Operators are required to perform KYC checks on both players and business partners (like service providers or B2B suppliers).

Market specifics for entry

Despite the growing financial burdens due to additional payments, such as the mandatory contribution to Romania’s gambling addiction prevention fund or minimum share capital for the operators, the Romanian market remains attractive to foreign operators.

As of 2023, 475 B2B licences have been issued, including more than 140 for software and game suppliers, 25 of which were issued in 2023 alone.

Current numbers of issued licences:

• Land-based casino: three
• Online gambling: 32
• Land-based sports betting: 14
• Slot machines halls: 107

The 4H view

The Romanian gambling market continues to present promising opportunities, though recent regulatory changes have imposed stricter requirements on operators. 

In August 2023, licensing fees were significantly increased. For example, the cost of B2B licences for ancillary services jumped by over 110%, while online gambling operators faced a substantial rise in the responsible gambling tax. 

These changes reflect Romania’s intent to enforce stricter financial responsibilities on gambling operators, ensuring the stability and transparency of the market.

Furthermore, in October 2023, new regulations restricted the locations of slot machine halls to localities with populations exceeding 15,000 people, while also limiting advertising opportunities. In 2024, additional amendments introduced heightened financial guarantees for gambling operators, which further raised the bar for market entry, especially for smaller players.

Despite these challenges, the Romanian gambling market has seen dynamic growth. For instance, in August 2024, evoke acquired 51% of New Gambling Solutions, which operates the Winner.ro brand.

The deal, worth €10m, signals the continued confidence of major players in the Romanian market. This acquisition demonstrates the attractiveness of Romania’s gaming industry, even with increased operational costs and regulatory burdens.

In addition, the National Liberal Party has proposed a ban on gambling advertisements as part of its legislative agenda for the fall parliamentary session starting in September 2024. This proposal, if enacted, would further reshape the advertising landscape and impose new challenges for operators. 

Nevertheless, the Romanian gambling market remains a valuable target for expansion, especially for companies with the resources to navigate its evolving regulatory framework.

Ivan Kurochkin is one of the founders of 4H Agency, partner and head of the Eastern Europe desk at 4H. After 10+ years’ experience in consulting every type of clients from the testing laboratories to global operators and B2B providers on a variety of matters related to the gambling operations, Ivan has proven himself to be a business-oriented multijurisdictional advisor for entering new markets across the globe.

Ivan’s background helps him to choose the best and most efficient scenarios for expansion to new market or for bringing existing operations of 4H’s clients to a significantly new level. Ivan is also an expert in the field of responsible gambling and frequent author for industry media.