Introduction

In recent years, Romania’s gambling industry has faced increasing legal uncertainty due to frequent amendments in legislation. The rapid changes have led to inconsistencies that challenge both the predictability and stability of businesses operating in the sector. One of the most pressing issues is the requirement for gambling operators to continue paying taxes even after their licenses are revoked.

Frequent Amendments and Legal Instability

From October 2023 to July 2024, Romania’s gambling laws saw multiple revisions, each iteration bringing new complications. The primary legislative framework, GEO 77/2009, was amended three times in quick succession, leading to an unpredictable business environment. The GEO 82/2023, initially meant to organize gambling operations, was further modified in April 2024 (Law 107/2024) and then again in June 2024 (GEO 80/2024).

This constant flux has resulted in:

• Lack of clear regulations regarding tax obligations.
• Confusion over self-exclusion rules for players.
• Unclear obligations for gambling operators with Class II licenses.
• Disputes over license revocation penalties.

Unfair Taxation: Paying Even Without Operating Rights

A major controversy in the gambling industry revolves around Article 12 (5) and Article 17 (9) of GEO 77/2009. These provisions require gambling operators to continue paying authorization fees, even when their licenses have been revoked or suspended.

According to the law:

“An economic operator who no longer holds a valid gambling license, regardless of the reason for its termination, is still required to pay the corresponding authorization fees.”

This means that even if a gambling company loses its right to operate, it must still meet financial obligations for a service it can no longer use. This has been interpreted by many legal experts as a form of expropriation, contradicting constitutional principles.

The Constitutional Challenge

Romania’s Constitutional Court Decision No. 448/2013 previously ruled that taxes must be linked to a service or benefit received. In the gambling sector, however, operators are being forced to pay fees without being able to generate revenue, violating Article 16 of the Constitution, which ensures equal treatment of taxpayers.

Key legal points:

• Taxes should apply only when income is generated – If a business is no longer operational, the obligation to pay should cease.
• Article 45 & 136 of the Romanian Constitution protect private property and ensure free trade – yet the gambling laws contradict these principles.
• The tax structure contradicts international legal norms, discouraging fair economic activity.

Consequences for the Gambling Industry

This legal paradox has already led to financial instability among gambling operators:
✅ Increased risk of lawsuits against the government.
✅ Potential for foreign investors to withdraw from the Romanian market.
✅ Casinos, slot rooms, and betting operators struggling with debt accumulation.
✅ Suppliers and partners facing delayed payments due to financial distress in the industry.

Despite industry protests, authorities continue to enforce these controversial tax laws, prompting many businesses to seek remedies through the Constitutional Court.

Conclusion: Is There a Solution?

With the regulatory landscape becoming increasingly unpredictable, Romania’s gambling industry faces an uncertain future. The need for legal clarity and stable taxation policies is critical for maintaining investor confidence and ensuring a sustainable gaming market.

Until reforms address these inconsistencies, gambling operators will remain in a legal battle for financial justice, hoping for a resolution that aligns taxation with constitutional principles.