The Romanian government approved a Parliamentary proposal on July 4, 2025, raising taxes across several industries, including gambling. The decision is part of the government’s efforts to meet the country’s annual deficit target of 7% of its GDP, according to European Union standards.
Romanian Tax Increase: What It Means for Online Gambling
- The government approved an increase in standard VAT from 19% to 21% and the dividend tax rate from 10% to 16%. Online gambling operators will pay a 27% tax on their annual Gross Gaming Revenue (GGR).
- Slot machine venues will have to cough up an additional €1,000 annually per machine. Players’ winnings will be taxed at 4% at source, up from 3%, with no tax-free threshold.
- The Concordia Employers’ Confederation, whose members generate 30% of Romania’s GDP, is strictly against the tax hike. They claim the private sector is being unfairly overburdened with taxes.
Gambling Sector Reeling Under the Pressure of Taxes
Under Romania’s new fiscal package, online gambling operators will pay a 27% tax on their annual Gross Gaming Revenue (GGR), up from the previous 21%. Retail operators, on the other hand, will pay a 23% tax on the GGR. The government has also raised the standard VAT from 19% to 21% and the dividend tax rate from 10% to 16%.
Slot machine venues, which are already reeling under strict government oversight, including a ban on gambling ads, must now pay an additional €1,000 per machine annually in taxes. Players also come under the purview of the new tax regime, as all winnings, irrespective of the amount, will now be taxed at 4% at the source, instead of the usual 3%.
In the absence of any tax-free threshold, even small wins will be taxed at the new rate. This means players making small bets can lose money even if they win. In comparison, Romania’s neighbours, including Belgium, France, and Germany, do not tax gambling winnings, while Poland and Spain have generous tax-free thresholds.
However, the reformed tax slabs are far lower than the government’s initial proposal. In the initial draft, the law proposed a minimum tax rate of 10% on all gambling-related winnings, which has since been capped at 4% for winnings under €2,000. For winnings between €2,000 and €13,500, players must now pay €80 plus 20% on the amount above €2,000. For all winnings above €13,500, taxes are €2,350 plus 40% of the amount above €13,500.
Protests Erupt Within the Private Sector
Critics say that the steep taxes will have damaging repercussions by pushing players toward offshore gambling sites, where players might struggle with avoiding online casino fraud. Romania is already reeling under the pressure from unchecked gambling, and experts believe the crisis could deepen after the recent tax hike, especially with casual gamblers migrating to offshore platforms offering lucrative deals.
“We strongly oppose the new tax regime and consider it deeply unfair for the private sector to pay for the government’s mistakes in recent years,” said Dan Șucu, President of the Concordia Employers’ Confederation, which represents the top 20 sectors in Romania’s economy, including companies with 450,000 employees and an annual contribution of 30% to the national GDP.
Romania’s Economic and Social Council (ESC) has strongly opposed the government’s new tax regime, arguing that it unfairly burdens the private sector. However, Prime Minister Ilie Boloja’s government has deemed the tax hike necessary to restore the country’s economy.
The Romanian Gambling Regulator (ONJN) lost nearly €1 billion in revenue between 2019 and 2023 due to regulatory failures. An audit found serious lapses in the National Gambling Office’s IT infrastructure and monitoring systems, leading to operators underreporting revenue and underpaying taxes. It also accused the ONJN of failing to implement a 2% monthly fee on online gambling participation, introduced in 2019.
The ONJN has since been under immense pressure to remedy the situation. The national regulator recently made several efforts to enforce regulations and implement a mandatory self-exclusion database. The registry will be published on the regulator’s website and require operators to act on self-exclusion requests within 24 hours.