Romania’s Tax Hike Threatens Regulated Gambling Stability

Romania’s gambling industry is facing increased pressure following new signals from the government regarding higher tax rates on licensed online operators. The Romanian Remote Gambling Operators Association (AOJND) has publicly raised concerns that further tax hikes could weaken the local market rather than strengthen state revenues.

According to AOJND, operators already contribute up to 30% of gross gaming revenue through various tax mechanisms. Raising this further could disrupt market dynamics, reduce platform competitiveness, and unintentionally boost the appeal of unlicensed gambling sites.

Higher Taxes Could Shift Players to Offshore Sites

The AOJND argues that increased financial strain on regulated operators may force changes to their business models. These could include reduced payouts, fewer bonuses, or the removal of player-focused features—all of which could make legal platforms less attractive.

A recent study by the association found that 14% of Romanian players admitted to using unlicensed sites, often due to fewer restrictions and more generous offers. These platforms escape Romanian regulation entirely, offering no responsible gambling safeguards or income verification systems.

Revenue Drops Raise Policy Effectiveness Questions

Data from Romania’s National Office for Gambling (ONJN) shows a 17% drop in gambling tax revenue in 2024, totaling approximately €689 million. While multiple factors may explain the decline, the timing aligns closely with previous tax increases. This correlation raises questions about the effectiveness of current fiscal policy.

The AOJND stresses that taxation strategies must be balanced. Raising costs for legal operators without addressing offshore competition creates a regulatory loophole, undermining both revenue collection and consumer protection.

Player Protection and Market Oversight at Risk

Licensed operators in Romania must follow strict rules, including tools for self-exclusion, spending limits, and income verification. These controls aim to detect and reduce harmful gambling behavior. Unregulated platforms, by contrast, are free from such requirements.

Odeta Nestor, President of AOJND, has warned that further tax increases could accelerate the shift toward offshore sites. This would weaken Romania’s ability to track player behavior and enforce responsible gambling standards across its market.

Call for Balanced Policy, Not Deregulation

The AOJND is not opposing taxation itself. Instead, the group calls for a more sustainable approach—one that protects market viability while maintaining strong regulatory oversight. Without alignment between tax policy and player behavior, the legal sector may become less competitive.

If Romania aims to secure long-term gains from its gambling industry, it must ensure that licensed operators can operate fairly against unlicensed rivals. A tax-heavy strategy, without parallel enforcement against offshore platforms, could backfire.