Romania Gambling License

Romania offers companies that specialize in the gambling business a well-regulated and promising market. This country offers a wide range of licenses, which means you can choose the one you need to run your business legally.

In this article, we will look at obtaining a gambling license in Romania from different angles – from the advantages of this step to the requirements of regulatory authorities to the owners of online casinos and other gambling establishments.

Benefits of Obtaining a Gaming License in Romania

Whether your company is registered in Romania or abroad, and whether you specialize in betting, gambling, or gaming software, a gaming license in Romania will provide you with a number of benefits.

Legal Market Access

There is a special regulatory body that oversees the activities of gambling companies – the National Office of Gambling in Romania (ONJN). Romania’s gaming license allows entrepreneurs to avoid claims from this organization and conduct legal business within the territory of the country.

Financial Opportunities

Romania’s economy is steadily developing – recently, it has been showing an annual growth rate of 4-6%. This creates a huge potential for various business areas, and gambling is not an exception. Together with a quality legislative framework and a variety of available services, the high standard of living of the population allows providers to attract a large target audience and make good profits.

Tax Advantages

Every gambling and sports betting operator in Romania must pay mandatory taxes and fees to the country’s treasury. However, there are several privileges that the owners of Romania Gaming License receive.

For example, providers whose companies do not have a physical presence in the state are exempt from paying corporate and gambling taxes. Another plus is that the income of land-based casinos and other similar establishments, which does not exceed €13,500, is not taxed. Also, gambling companies and betting offices are not burdened with the payment of VAT.

Regulatory Protection

As we mentioned above, in Romania, the activity of gambling companies is regulated by ONJN. This body not only controls the gambling business, but can also provide its owners with guidance and assistance in solving problems with compliance with the established requirements.

Also, the activities of companies working in the field of betting and gambling are strictly regulated by various laws and regulations, so that each operator has a guarantee of respect for his rights and freedoms. We will talk about this in more detail below.

Legal Framework for Obtaining a Gambling License in Romania

Romania has a developed system of regulations in the gambling business.

1. Law № 124/2015 is the main normative act that regulates the industry and determines the tax obligations of providers.
2. Emergency Decree № 77/2009 – establishes the rules for the organization and conduct of gambling.
3. Emergency Ordinance № 20/2013 and Ordinance № 298/2013 – regulate the activities of ONJN.
4. ONJN Presidential Orders No. 47/2016, 48/2016, 93/2016, 89/2018, 179/2018 and others – deal with various aspects of online and land-based gambling operators, including certification, reporting, and taxation.
5. Law No. 129/2019 – legislative act on preventing and combating money laundering and terrorist financing.
6. Decision No. 15/2022 – communicates changes to license and permit fees for gambling operators.

In order to operate legally on the territory of Romania, it is necessary to follow the changes in the legislation of this country and strictly comply with the requirements of the regulations.

Types of Gambling Licenses in Romania

Depending on what kind of services your company is going to provide, you need to obtain a certain type of license:

Class 1 License

This license must be obtained by B2C providers, whether they operate remotely or own land-based gambling facilities.

Class 2 License

This license and associated permits are required for the B2B sector of the gambling industry that works with B2C companies. This sector includes:

• Organizations whose activities are related to gaming equipment (relevant for land-based gambling businesses);
• developers of digital products;
• vendors providing hosting and online resource management services;
• online casino providers;
• laboratories involved in the certification of software products;
• payment systems;
• marketing services.

Class 3 License

A license is issued to the Romanian National Lottery, which has the exclusive right to conduct any type of lottery.

Slot Machine License

To obtain this type of license, several conditions must be met:

• Each machine must be certified and undergo regular inspections to ensure that it is not damaged. If it is a virtual slot, it must be audited and pass the Random Number Generator (RNG) Certificate.
• The owner of this business must be more than 23 years old.
• The applicant must not be in public service and must not have a criminal record.
• It is prohibited to place vending machines in public places. Exceptions are cafes and shopping centers, but such establishments must have a separate entrance for the gaming hall.

Betting License

In order to obtain a betting license, a company must also comply with some requirements of the Romanian legislation:

• The installation of video surveillance cameras in the gambling hall and the cash desk is mandatory. It is also necessary to store the recordings for 10 days for the resolution of disputes.
• The owners of a betting shop are not authorized to gamble.

Bingo License in Romania

In Romania, there is a distinction between licenses for land-based casinos offering bingo games and online platforms with such a service.  In order for this type of license to be granted, the applicant must comply with the operating standards, provide the required reporting in a timely manner and comply with the laws of the country.

Online Gambling License

In order to obtain an eGambling License in Romania, the operator must fulfill several requirements:

1. The game server must be located in Romania, another EU or EEA member country, or Switzerland. If this is not possible, the company must host mirrored and secured servers in Romania.
2. All infrastructure used must be provided by B2B providers with a class 2 license.
3. The operator must have a certificate issued by a laboratory with a class 2 license.

In order to operate in accordance with the Romanian legislation, it is important to obtain the type of license that suits the specificities of your business.

Requirements for Obtaining a Gaming License in Romania

To obtain an ONJN license is not enough to simply provide gambling or sports betting services. The company must also fulfill certain conditions.

Company Registration

In order to operate a licensed gambling activity in Romania, you must establish a legal entity in Romania.

Financial Sustainability

Another mandatory requirement of the ONJN is for the company to prove that it has sufficient funds to effectively manage its gambling activities.

To prove financial sustainability, the owner of the company can provide up-to-date financial statements, bank statements, tax returns, a business plan including financial projections and other documents.

Technical Requirements

It is also mandatory for the vendor to comply with the technical requirements for gaming equipment, software and other infrastructure required for the operation.

Requirements for Online Casino Operators

Above, we have looked at the general requirements for applicants who want to obtain a gaming license in Romania. Now, let’s talk about the rules that entrepreneurs who provide their services online must comply with. In other words, applicants applying for an eGambling License in Romania.

1. All IT infrastructure must be tested in a specialized laboratory. It is mandatory that the laboratory has a Class 2 License.
2. Digital products used for conducting drawings, random number generation, etc., must be certified accordingly. Only the Class 2 License holder is authorized to carry out certification.
3. If the game server is located outside Romania, the business owner must set up a full copy of it in the country – the so-called mirror server. Its purpose is to track any activity of the gaming platform related to the Romanian market. Such a server must contain detailed reports on the activity and financial results of the provider.

Thanks to clear requirements, Romanian legislation guarantees the protection of both gambling operators and their customers. Therefore, this jurisdiction is optimally suited for the gambling business.

Steps to Acquire a Gaming License in Romania

Obtaining a license to conduct business in the field of gambling involves a number of actions, which can be divided into five stages:

Company Formation

For business registration in Romania, the first step is to choose the preferred legal form of the company. You can become a founder of a Limited Liability Company (SRL), Joint Stock Company (SA) and others.

After that, it is necessary to register the company with the Romanian Trade Register. For this purpose, you should prepare and submit to this organization a package of documents, which includes the articles of association of the organization, data on the management of the company, a document confirming the address of the office registration, etc.

It usually takes 5-7 working days to set up a company in Romania – provided that the registration authority has no claims to the submitted documents.

As a reminder, it is not necessary to register a local company in Romania if you plan to provide gambling or betting services.

Documentation Preparation

Once the company is registered, you should take care of preparing the required documents. Depending on the type of license, the legal entity may have additional requirements, but there is a general list of documentation that includes:

1. A completed application form for a license of the required type.
2. Company registration documents, including articles of association, certificate of incorporation, etc. depending on the type of organization you have registered.
3. A document showing the organizational structure of the company.
4. Information about the shareholders.
5. Financial documents to prove financial stability.
6. Technical documentation detailing the IT infrastructure used and certificates issued by an official laboratory.
7. Identity cards of business owners and key personnel of the company.
8. Receipts for payment of the registration fee and other required contributions.
9. Document confirming that the main persons of the company have no criminal record.
10. Documents that confirm the provider’s compliance with the rules of gambling on the territory of Romania and the European Union.

To make sure that you have the list of documents up to date at the time of application, consult ONJN or ask for help from Lawrange’s qualified lawyers. We will not only provide you with a comprehensive consultation, but also assist you in preparing documents for quick registration.

Anti-Money Laundering (AML) Procedures

In order to obtain a gambling license in Romania, all providers are obliged to take a responsible approach to anti-money laundering. They need to prepare an AML policy and develop customer verification procedures.

Among other things, they should:

• keep records of customer transactions;
• report suspicious transactions to the appropriate authorities;
• implement internal controls to ensure compliance with AML rules;
• work to train staff;
• file appropriate documentation in a timely manner.

License Fee Payment

Obtaining a license to open a casino in Romania is not free of charge.  The regulator will take into account the type of document to be issued and the scope of services the operator plans to provide, and will set the license fee. This varies from €2,500 to €300,000+.

Here is a list of license fees applicable to different types of licenses:

Thereafter, providers are obliged to pay an annual fee for the renewal of the license.

Another type of expense, without which the opening of a gambling establishment in Romania will not do, is the permit fee. The amount to be spent also depends on the type of activity of the operator. It ranges from €650 (for a temporary Class A gaming machine) to €180,000 (for traditional lottery games).

Final Approval and Launch

Once the company has completed all the previous steps, the ONJN will carry out the necessary checks on the legal entity’s documents and activities and give a verdict on the license application.

If everything is done clearly and without remarks, it will take 30 to 60 days. However, this period may be extended by additional requests of the registration authority or insufficient completeness of the submitted data.

Taxation of Gaming Companies in Romania

Representatives of gambling businesses are obliged to make such contributions to the state treasury:

• Tax on online gambling. Its rate varies by type of service and ranges from 1% to 16% of gross national income.
• Authorization tax. This is a tax imposed on the owners of land-based casinos. Its rate is 21% of the gross gaming revenue (GGR).
• Annual license tax. The amount depends on the type of games and ranges from €15,000 to €200,000.
• Participation fee tax. It is levied at a rate of 2% of the monthly amount cashed out for participation.
• Advertising Tax. It is logical that every gambling company invests money in its promotion. This process is also taxed in Romania. Its rate is 5% of the advertising contracts.

• Property tax. Owners of video lottery terminals and slot machines will have to pay €500 per year.

• Corporate income tax. Gambling companies are subject to this tax at the standard rate for all firms – 16 % of net profit.

As you can see, Romania has a rather complicated taxation structure for gambling business, so to avoid problems with the tax authorities of the country it is better to entrust the payment of the necessary fees to professionals.

Software Requirements and Reporting

The software used in the gambling business is strictly controlled to comply with established technical standards. Among other things, operators must comply with such requirements:

1. Obtain certification from a licensed laboratory and submit the relevant documents together with an application to the ONJN.
2. Ensure the safe storage and transmission of financial and user data.
3. Guarantee the integrity of the game through timely audits and RNG certification.
4. Ensure the localization of the operator’s servers on the territory of Romania or other admissible countries, or install mirrored and secure servers in the country.

Regarding reporting, Romania also has clearly defined obligations in this matter. Providers must file:

• regular financial reports;
• reports on compliance with AML policies;
• reports on activity on the platform, which include the actual number of users, transaction volume, problems encountered, etc.;
• a report on measures taken to encourage the responsible game;
• tax returns.

Operators should also be prepared to provide any additional reporting requested by the regulator.

Why You Should Contact Lawrange

Obtaining a gambling license in Romania is a process that requires the applicant to know the exact requirements for the package of documents, the technical specifications of software and equipment, the subtleties of taxation and reporting.

To avoid license refusal and problems with Romanian legislation, it is better to entrust this procedure to professionals from Lawrange.

We have hundreds of successful cases of cooperation with clients all over the world and 10+ years of work in the field of law. We guarantee a personalized approach to each client and a list of services that is exactly what you need.

Contact our experts, and you will be able to start a profitable business in a promising market quickly and legally.

Conclusions

Registration of Romania Gaming License is a prerequisite for companies that want to operate in the territory of the country in the field of gambling or betting.

To do so, the operator must contact the regulator, ONJN, and provide the required documentation package. It will also be mandatory for the company to be inspected for compliance with basic technical and legislative requirements.

To ensure that your license application is not rejected due to paperwork problems and all inspections are passed smoothly, seek help from the professional lawyers at Lawrange. Contact our expert and get answers to all your questions.

FAQ

How frequently must a gambling license be renewed in Romania?

Romania Gaming License is valid for one year. Accordingly, it must be renewed annually. To do this, you need to apply to ONJN and pay a renewal fee. Its size will depend on the document you possess.

What Is the cost of a gaming license in Romania?

The cost of a gaming license in Romania depends on its type. For example, a Class 1 License costs between €15,600 and €312,000 depending on the operator’s turnover. Class 2 License – €20,000, Class 3 License – €200,000.

What are the common reasons for the rejection of a gambling license application in Romania?

The ONJN may refuse to issue a gambling license in Romania in case of certain problems and inconsistencies. Among the most common of these are: incomplete package of documents, errors in documentation, non-compliance with technical, legal and regulatory requirements, insufficient financial stability of the company. An entrepreneur who has had reputation problems or a criminal record will also be denied a license.

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