Romanian government urged to ditch 300% tax hike on customer withdrawals
Industry trade body AOJND argues consumers, operators and the state would all suffer if proposal goes through
Romania’s Association of Remote Gambling Organisers (AOJND) has urged the Romanian government to reconsider its proposed 40% tax on gambling withdrawals.
The potentially damaging move is part of a raft of changes to the country’s fiscal code that are being drawn up by the Romanian government.
The increase in tax – from its current 10% – is primarily an attempt to reduce the number of online gamblers in Romania, which is a regulated market, yet the AOJND has argued the policy will fail to achieve this aim.
In a statement, the AOJND said all parties will lose out should the 300% hike be implemented, with players, licensed operators and the government bearing the brunt of such heavy taxation.
Odeta Nestor, president of the AOJND, pointed out that the sums withdrawn by the majority of players in the Eastern European country were not indicative of a customer base that required such heavy deterrents.
She said: “Online gambling is purely an entertainment industry, not a source of revenue for gamers.
“According to AOJND data, over 80% of those who withdraw money after participating in gambling withdraw amounts up to LEI1,000 (£173.76). In essence, these are mostly cases in which the player does not pursue victory at any cost but the pleasure of playing.”
The trade body, which represents the main remote operators, also pointed to the current success of Romania’s model, highlighting the approximate 90% channelisation rate – one of the highest in Europe.
A shift of customer base to unlicensed operators would reduce the tax paid by gaming operators by an estimated 50%, says the AOJND
It has also been suggested that Romanian sport would suffer as the gambling industry sponsors a number of teams across a range of sports including football clubs CFR Cluj, Dinamo Bucharest and FCSB.