Romania’s National Gaming Office (ONJN) announced that it has revoked the license of the Bucharest-headquartered operator Betting Frenzy. Signed by Mihail-Silviu Pocora, president of the ONJN, the decision will void the company’s license because of tax-related issues. As a result, the company will no longer be able to legally offer slot games in the country.

According to the ONJN, the decision was taken after the regulator carried out controls and found out that the gambling company failed to properly declare and pay its taxes for the first three quarters of 2023 in the provided time frame. The ONJN understood that Betting Frenzy had not declared nor paid around $704,000 in gambling taxes.

To make matters worse, the operator not only failed to money but also did not provide the proper documentation to the relevant bodies. According to the ONJN, Vochitoiu Mihaela, a representative of Betting Frenzy, could not prove that she had sent the required documents to the relevant bodies.

The ONJN has now required the operator to pay back the money it owes. The company’s license will be taken away and it will be required to pay an $11,000 fine. However, the company can try to appeal the regulator’s decision within 30 days of the ruling.

The Romanian Market Continues to Grow

Romania has one of the fastest-growing casino markets in Europe and is constantly attracting new companies. Some of the latest licenses issued by the ONJN were handed to Soft2Bet and ELA Games. In April, the regulator also provided a license to RubyPlay.

As a result of this influx, the ONJN has to work overtime to ensure that its licensees are compliant with the rules outlined in Romania’s gambling laws.

July saw a number of foreign suppliers ink deals with local companies and expand their presence in the Romanian iGaming market, further cementing the country as an attractive European destination for gambling firms.

One of the latest deals saw the Bulgaria-headquartered supplier 7777 gaming supply NetBet Romania with over 50 new games. Around the same time, Pragmatic Play agreed to provide live casino content to Superbet, another Romanian operator.

Speaking of Superbet, the gambling company also secured a bespoke SuperLiga game thanks to an agreement with Gaming Realms.

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The Baltic nation’s new government is keeping true to its planned gaming reforms. Its newly proposed taxation policy update outlines small but incremental hikes across all forms of gambling. Estonia currently sports one of the lowest industry tax rates in Europe. The planned minor increase should still allow the sector to remain attractive despite tightening regulations.

Operators Will Still Pay below Average

Estonia has fully embraced the rising European trend of tightening gambling regulations and increasingly stringent customer protection measures. The country’s coalition government has predominantly rallied behind the cause, evident by the newly proposed Tax Laws Amendment Act. The document envisions sweeping changes across the private and corporate sectors, with a special section dedicated to gambling.

According to the draft legislation, gambling companies will face sweeping tax increases. The 3% hike on lotteries should not affect private operators since the national lottery is a state-owned monopoly. This measure primarily targets retail companies organizing marketing initiatives and consumer games to promote their products.

However, the planned increase in betting and online gambling means that Estonia will no longer tie with Malta as the lowest-taxed jurisdiction. The current 5% rate will jump to 6% in 2024 and 7% in 2026, contributing €8-13 million annually to the government’s coffers. Even with the increase, Estonia will remain among the most promising markets, meaning the gambling sector should retain its attractiveness.

The Country Tightens Its Grasp on the Industry

The low tax rate is one of the primary factors behind the explosive growth of Estonia’s gambling industry. With nearly 30 operators competing over the country’s population of just 1,33 million, the authorities have become increasingly concerned regarding the rise in gambling-related harm. The nation has followed the European trends towards more stringent gambling regulations, proposing a complete ban on advertisements.

Industry representatives have rallied against these measures, calling for a more nuanced approach. They drew attention to the delicate relationship between sports stakeholders and operators, urging government officials to meet them for further discussions. However, the consensus between the ruling parties and the threat of rising societal costs seems sufficient for the authorities to proceed with their plans.

Overall, the planned tax hikes and tightening regulations spell the end of the honeymoon period Estonian operators have been enjoying until now. If implemented, the measures will likely cause a temporary downturn, but examples from other European countries show that the industry can thrive even with similar restrictions.

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