Romania’s government, under Prime Minister Ilie Bolojan, has enacted a sweeping fiscal package that includes a controversial increase in gambling taxes, effective July 4, 2025. This decision aims to bolster national coffers and align Romania with the European Union’s 2025 deficit target of 7% of GDP, but it has ignited fierce opposition from across the gambling industry.

Among the broader fiscal measures, the standard Value Added Tax (VAT) will rise from 19% to 21%, and the dividend tax rate will jump from 10% to 16%. However, it is the direct impact on the gambling sector that has caused particular alarm.

Dual Impact: Higher Taxes for Both Operators and Players

Under the newly approved regime, online gambling operators will now face a 27% tax on their gross gaming revenue (GGR), a significant leap from the previous 21%. Retail operators are also impacted, with their GGR tax rate increasing to 23%. Slot machine operators, who are already grappling with a ban on venues in smaller communities, will be hit with an additional €1,000 annual fee per machine, according to reports.

Players themselves will also feel the immediate effects of this fiscal shift. All winnings from gambling activities, regardless of the amount, will now be subjected to a 4% tax applied directly at source, up from the previous 3%. Critically, with no tax-free threshold in place, even nominal winnings of just a few dozen lei (Romania’s currency) will be subject to deductions. Local media has highlighted the punitive nature of this change for casual bettors, noting that “For players, the new blow comes in the form of a 4% tax applied directly at source on any winnings, even those of just a few dozen lei, which, in the context of taxation from the first leu, means that players with small bets can lose money even when they ‘win’.” This contrasts sharply with other European jurisdictions, where countries like Germany, France, and Belgium do not tax gambling winnings at all, and others like Spain and Poland only apply taxes after a more generous threshold is met.

The winnings taxation system has seen recent adjustments. While the newly adopted version sets the 4% rate for winnings up to 10,000 lei (approximately €2,000), it escalates to 400 lei (approximately €80) plus 20% of the amount over 10,000 lei for winnings up to 66,750 lei (approximately €13,350), and 11,750 lei (approximately €2,350) plus 40% of the amount over 66,750 lei for higher winnings. This adopted version is less severe than an original government proposal, which had initially suggested a minimum tax rate of 10% on all winnings.

Industry Warns of Black Market Migration

Critics are voicing strong concerns that these measures could have the unintended consequence of pushing more players towards unlicensed, offshore operators. A local industry executive, quoted in a report, noted that “There is already anecdotal evidence of players shifting to offshore platforms to avoid excessive taxation.” They emphasized that “These taxes make regulated play unattractive, especially for casual players.”

Dan Șucu, president of the Concordia Employers’ Confederation, a prominent industry body representing 20 key sectors and over 450,000 employees contributing 30% to national GDP, has reacted vehemently. In a statement, Șucu declared categorical opposition to the tax increases, deeming it “deeply unfair for the private sector to pay again for the irresponsibility of governments in recent years.” The Romanian Economic and Social Council (ESC) has also been vocal in its opposition to the fiscal package, asserting that it unfairly burdens the private sector.

However, the government maintains that the tax increases are crucial for restoring balance to the country’s economy. Authorities highlight that Romania lost nearly €1 billion in gambling taxes between 2019 and 2023, largely due to systemic regulatory failures at the National Gambling Office (ONJN). An audit reportedly accused the ONJN of operating with outdated IT systems, failing to monitor licensed entities, and not properly enforcing the 2% monthly tax on online gambling participation fees introduced in 2019.

ONJN Joins European Regulators’ Forum

In a separate, positive development for Romania’s regulatory landscape, the National Gambling Office (ONJN) has officially joined the Gambling Regulators’ European Forum (GREF). This accession brings GREF’s membership to 44 regulatory authorities, strengthening the European organisation’s collective expertise and capacity to address the evolving challenges of gambling regulation across the continent. This development signifies Romania’s commitment to international regulatory cooperation despite domestic tax policy debates.

The new gambling taxes in Romania underscore a clear government strategy to address fiscal deficits, but industry warnings suggest that the increased burden on both operators and players could inadvertently empower the black market and deter legitimate engagement, creating a challenging environment for the regulated sector.