Romania Government’s Stance On Winnings Tax: What You Need To Know

In a major blow to gamblers in Romania, the government recently approved a significant tax increase on player winnings at online casinos and other similar gambling sites from 3% up to 40%. This new multi-tiered ‘withholding tax structure’ was announced as recently as July 15th, 2022. Gambling sites that are licensed by the National Office for Games of Chance (ONJN) must impose these tougher new regulatory changes from August 1st.

A quick look at the tax hikes coming into effect regarding casino and betting winnings

The first tier of the new tax withholdings will start at 3% on all winnings below RON10,000 (which is the equivalent of €2,000). The second tier will see a 20% charge on winnings between RON10,000 and R66,750 (€13,600) and the top tier will see a whopping 40% tax on players’ winnings above RON66,750. The aim is to increase the tax contribution from Romania’s gambling sector, and it has been met with wide criticism.

In comparison, since 2016, players’ winnings above RON445,000 (€110,000) were taxed at 25%. There was a 16% tax imposed on winnings between RON66,750 and RON445,000 and a 1% tax on player winnings below RON66,750. In addition, the ONJN – the regulatory authority that oversees licensed gambling activities in Romania, will be introducing a new renewal fee for its licensees. The new price has jumped from €120,000 to €320,000.

Romania’s Remote Gambling Trade Association (the AOJND) has opened talks with the government in an attempt to put these steep new taxation measures on hold for a while. In the meantime, they will be looking to see if any other tax alternatives can be considered for the operators that currently hold a licence with the ONJN. Based on recently gathered market data, the AOJND also highlighted that among the players to be impacted the most by these new changes were the recreational players that make up 80% of gamblers, all of whom tend to win less than RON1,000 (€200). You can learn more about how certain countries tax players on their winnings by checking out this useful guide about taxes on slot machine winnings.

What types of gambling are legal in Romania?

Today in Romania, a variety of gambling forms are permitted, and it’s legal to gamble at land-based gambling venues and online gambling sites that are licensed by the ONJN. It’s also possible to gamble at foreign-controlled gambling sites that are licensed offshore by various other major licensing authorities, such as the Alderney Gambling Control Commission (AGCC), the UK Gambling Commission, the Gibraltar Regulatory Authority, and the Malta Gaming Authority.

Romanians can also sign up to and gamble in the real money mode at sites that are licensed by the Kahnawake Gaming Commission, the Isle of Man Gambling Supervision Commission, and the Directorate of Offshore Gaming in Antigua and Barbuda, to name just a handful of top-tier licensing jurisdictions/authorities. The official websites for each of these regulators provide further information for players who are looking to learn more about who actually controls the gambling sites that are licensed by them.

The main types of gambling that are currently permitted in Romania include various land-based betting forms, such as bingo halls, lotteries, poker, blackjack, roulette, sweepstakes, slots machines/fruit machines, as well as similar online betting services (e.g., online casinos, online poker rooms, online sports betting sites, and online bingo). Each subgroup requires separate licensing. At the time of writing, there are around 20 licensed land-based casinos and lots of online casinos, poker sites and sports betting sites to choose from.

Are online casinos in Romania free to sign up to?

Yes. Romanian-player-focussed online casinos are free to sign up to, and when you register a new account for the first time at any licensed online casino, you can generally claim some kind of guaranteed welcome bonus. The online registration process takes less than a few minutes to complete, and you can play the games at these sites either on desktop or mobile. The two main types of welcome bonuses you can take advantage of are a matching deposit bonus (which can usually only ever be claimed on your first deposit), or X amount of free spins to try out a selection of online slot machines.

What types of games are available at Romanian online casinos?

You can generally find upwards of 1,000 state-of-the-art online casino games at most sites, many of which have been developed by and supplied to the casinos by various leading online casino software providers, such as Microgaming, Playtech, NetEnt, Blueprint Gaming, Red Tiger Gaming, IGT, Play’n GO, Pragmatic Play, Yggdrasil Gaming, iSoftBet, Thunderkick, and ELK Studios. The main game categories include Slots, Table & Card Games, Progressive Jackpot Games, and Instant Win Games, plus you can also now find a variety of live dealer games that are supplied by Evolution Gaming, Pragmatic Play, NetEnt and Playtech.