Romania introduces new additional turnover tax on egaming

Egaming operators in Romania could soon pay an additional 2% tax on turnover under emergency proposals introduced by the Romanian government.

Initial proposals published by the government called for an additional 10% tax rate on turnover, however these proposals were revised to a 5% for online and 3% for land-based operators following lobbying by Romanian operators just prior to the Christmas period.

As part of an emergency ordinance, proposals were then revised again to reduce that taxation to a 2% rate for online operators with land-based operators now paying an increased amount of €3,600 per annum rather than the previous €2,600. Land based operators have to pay an additional €400 so-called ‘vice tax’ for slot machines and video lottery terminals per anum.

However, EGR understands the final taxation basis has yet to be agreed by both the government and the National Gambling Office.

At present online operators already pay a 16% tax on gross gaming revenue, while their land-based counterparts pay a combined €3,000 annual tax per year (inclusive of the vice tax).

The measures were introduced as part of a so-called “greed tax” which targets the banking, retail, alcohol and tobacco industries in Romania, imposing new taxes in these areas as a way of furthering social reforms in the country.

A total of 22 online operators are currently licensed by the Romanian National Gambling Office, including The Stars Group, Unibet, Greentube Malta and Stanleybet. Fellow operator bet365 was blacklisted and had its licence cancelled by the regulator in 2015.