Romania’s right-wing political party, Alliance for the Union of Romanians (AUR), has made an interesting parliamentary proposal that could revolutionise the country’s gambling sector and boost tourism simultaneously. A faction of party members backed a new draft law that seeks to align gambling operations with the national tourism industry. The idea is to form a collaborative framework between the two sectors, creating leisure hubs and boosting casino tourism.
Romanian Lawmakers Suggest Aligning the Country’s Gambling and Tourism Industries: A Quick Overview of the Key Points
- Signed by 37 members of the right-wing Alliance for the Union of Romanians party, the draft law aims to align Romania’s gambling industry with the tourism sector to capitalise on the vast potential that leisure travel holds.
- The draft legislation proposes amending Romania’s Gambling Act to accommodate its integration with the tourism sector. Lawmakers are exploring all possible avenues to offer gambling services at the 56 licensed resorts in Romania.
- Supporters of the bill believe the amendment will create economic opportunities for local communities by attracting investment, creating employment opportunities, and generating tax revenue.
Casino Tourism Could Establish Romania as Europe’s Premium Entertainment Hub
Lawmakers in Romania are making a fresh effort to revolutionise gambling regulations in the country. 37 members of the right-wing Alliance for the Union of Romanians political party submitted a proposal in the parliament to amend the Gambling Act. Supporters believe that bringing the two industries together will create massive economic opportunities for the country, generating the funds for community development.
The draft proposal aims to reform Romania’s existing gambling laws to accommodate new regulations aligning the country’s gambling and tourism sectors sustainably. The AUR plans to find a feasible way to incorporate the gambling sector with the country’s 56 licensed resorts.
Gambling in Romania is heavily regulated, with the National Office for Gambling (ONJN) overseeing remote operations. The increasing popularity of offshore gambling sites, such as licensed Czechia online casinos, has motivated Romanian lawmakers to maintain strict oversight. However, while remote gambling in Romania is thriving, land-based operators are stuck in time. The AUR’s proposal aims to breathe new life into the sector.
Supporters of the bill argue that aligning Romania’s gambling and tourism strategies will lead to significant development in both areas, a concept they refer to as “balanced territorial development.” The party believes this will help leverage the economic opportunities presented by both industries and develop Romania into Europe’s premium entertainment hub.
Lawmakers have already taken several measures to reform Romania’s gambling industry. Earlier in July, Prime Minister Ilie Bolojan announced that the government had been working on draft legislation granting city halls total freedom to regulate gambling activities within their municipalities. Local leaders have widely praised this decision.
The AUR’s latest proposal has several economic benefits, including investments in “hotels, restaurants, conference centres, and other related services.” Casino tourism would not only generate additional revenue for the Romanian government and local communities but also create sustainable employment opportunities.
If the law is enacted, existing casino resorts will gain a competitive edge, while new operators will find attractive growth opportunities. For clarity, under Romania’s existing Gambling Act, casinos and betting venues are prohibited in municipalities with fewer than 15,000 residents.
Lawmakers Highlight the Potential for Economic Growth and Measures for Responsible Gambling
The AUR’s assessment also demonstrates that promoting casino tourism will not only attract investments but also draw in foreign crowds, increase the average duration of stays, and increase per-person spending. The draft legislation proposes to retain existing tax brackets, although fund redistribution may be necessary to benefit municipalities with higher tourist activity.
This hints at favourable tax conditions for casinos or gambling venues within tourist resorts. The Romanian government recently announced a tax hike, in which the standard VAT was increased from 19% to 21% and the dividend tax rate from 10% to 16%. Gambling operators must now pay 27% taxes on the annual Gross Gaming Revenue (GGR).
The AUR proposal also covers sensitive topics such as gambling harm. However, there is room for clarity. For example, while the AUR proposes employing trained staff and installing specialised infrastructure to identify early signs of gambling addiction among patrons, finding standardised indicators may pose significant challenges.
The rational question here is: How does trained Romanian casino personnel identify symptoms of gambling addiction in a guest from Ireland? Situations like these highlight the importance of standardised gambling regulations throughout the EU, as the European Gaming and Betting Association (EGBA) had earlier suggested.
The proposal also mentions tourist resorts helping protect low-income individuals from “exposure to disproportionate financial risks”. However, this assessment is not entirely accurate since low-income individuals can easily access online gambling sites from a hotel room instead of visiting brick-and-mortar casinos.
This chain of reasoning also applies to another AUR statement, which claims a “reduction of indirect social costs generated by compulsive gambling problems in local communities”. However, the draft acknowledges a potential increase in the concentration of physical gambling venues if the law takes effect.
The AUR claims that the draft law complies with established European Union protocols. The bill’s supporters are currently waiting for parliamentary approval. If the Romanian Parliament enacts the draft legislation, it would mark the beginning of a new era for gambling regulations in the country.