An emergency ordinance was issued by the Romanian government, which called introduced a new 2% tax on gambling revenue, which will directly impact the profits of operators in the country. The measure was voted and pushed along ahead of the Christmas holidays, with the government having long been warning for a new uptick in the tax levels related to gambling.
The turnover tax must be paid monthly by the country’s licensed iGaming companies, in addition to the existing 16% gross revenue tax, which has been in place since the country’s market opened to private operators in July 2015.
While the 2% turnover tax will be used to help fund government spending, GEO 114/2018 also imposes additional costs, namely a €5,000 fee for iGaming licencees, and an additional €1,000 charge on land-based gaming operators.
As a result of the new taxes, several operators have made announcements regarding their new decisions. CEO of Pokerfest Romania, Sorin Constantinescu said that the UK-based 888 Holdings had pulled out from organizing a live poker tournament which was supposed to happen in March in Bucharest. He added that the company will also stop “marketing activities” in Romania. Shortly after, 888 said that they aren’t planning to withdraw from the Romanian gambling market.Follow us on