Romania’s Gambling Crackdown Pushes Land-Based Operators Toward Collapse

Romania’s once-thriving gambling industry is facing one of the most severe crises in its modern history, as a wave of legislative reforms continues to destabilize the country’s land-based gaming sector.

What was once regarded as one of Eastern Europe’s strongest retail gambling markets is now struggling under mounting regulatory pressure, spiraling taxation, and growing political hostility toward the industry.

The scale of the contraction has been dramatic. In just two years, the number of slot machines operating across Romania has fallen from approximately 80,000 to only 36,000.

According to a source working for a major Romanian gambling operator, who requested anonymity, the decline may accelerate even further before the end of the year.

“And this is the optimistic scenario,” the source said, warning that the total number of machines could soon fall to between 15,000 and 20,000 nationwide.

The crisis did not emerge overnight. Romanian authorities have gradually tightened restrictions on gambling over the past several years. In 2024, the government introduced legislation banning slot halls in towns with populations below 15,000 residents. At the same time, stricter zoning rules and tighter advertising controls were implemented, significantly reducing the operational flexibility of gambling businesses.

The pressure intensified further in 2025, when the government approved major tax increases across both online and land-based gaming. Gambling taxes for online operators were raised to 27% of gross gaming revenue, while retail operators faced rates of 23%. Additionally, annual licensing fees for slot machines increased by €1,000 per unit.

However, industry stakeholders say the most damaging measure arrived in February, when the central government unexpectedly transferred authority over gambling licensing to local councils through an emergency ordinance. Under the new framework, municipalities gained the power to veto new gambling venues entirely, impose local bans, introduce additional taxes, and establish their own zoning restrictions.

The response from local authorities was immediate and aggressive. Within days, nine municipalities announced plans to prohibit slot halls altogether, including the cities of Slatina, Brăila, Ploiești, and Iași. Constanța indicated it was considering a similar path, while Bucharest’s District 3 also began pushing for restrictions within the capital.

“The simplest solution is to eliminate these businesses entirely from the city,” Slatina mayor Mario De Mezzo declared. “They are toxic for society.”

Despite the abrupt shift in authority, gambling venues were not automatically shut down when the law took effect. According to Bucharest-based commercial law firm BMA Legal, operators holding valid authorizations from Romania’s National Office for Gambling (ONJN) were permitted to continue operating temporarily.

The problem lies in what happens next.

Once those annual authorizations expire, operators will either be forced to seek approval from local councils or cease operations entirely if municipalities decide to prohibit gambling activity. Official estimates suggest as many as 200 localities may ultimately impose bans.

The sudden implementation of the law created confusion not only for gambling companies but also for local governments themselves. Municipal authorities were given just 60 days to prepare new regulatory proposals despite receiving little guidance and no transition period from the central government. Yet by late April, when the deadline expired, only a limited number of councils had formally clarified their positions.

“It has effectively become a Catch-22,” explained Andrei Frimescu, director of communications at gambling trade association Romslot. “We hold a valid national authorisation, but we cannot operate without a local permit. Yet in order to obtain the new local authorisation, we need that local permit and, in many cases, local authorities are not issuing them, so the industry is blocked.”

The uncertainty has been compounded by political instability in Bucharest following a successful vote of no confidence that toppled the government. With the current administration functioning in a caretaker capacity, stakeholders fear meaningful clarification may not arrive anytime soon.

As operators wait for local decisions, many face the prospect of falling into regulatory limbo as their licenses expire over the coming months. Industry representatives warn that this could trigger a slow and gradual collapse of businesses across the country.

According to Dan Ghita, chairman of the betting association Rombet, the absence of a coordinated transition framework has created severe unpredictability.

“The lack of a transition phase has amplified unpredictability, making it difficult for operators to plan investments or even maintain existing operations,” Ghita said. “If widely applied, this model risks creating inconsistent regulatory environments across the country, which undermines the concept of a unified national market and the concept of the state monopoly (on lotteries).”

The fragmented approach emerging across Romania has only deepened concerns. Some municipalities are advocating for complete prohibitions on gambling, particularly politicians aligned with the centre-right Save Romania Union Party, which strongly supported decentralizing gambling oversight.

Other councils have proposed partial restrictions, such as eliminating slot halls while preserving sports betting and national lottery operations. Some municipalities are reportedly considering imposing extraordinarily high local taxes, reaching as much as €1,500 per square metre for gambling premises. Others have introduced unusual ideas governing the appearance and placement of venues.

“The councils are coming up with some very interesting and diverse ideas, like confining gambling to outside of the city limits or to buildings with an attractive facade,” Frimescu noted. “But the fact is that the law doesn’t give the local authorities this kind of power.”

Romslot argues that municipalities are legally permitted to regulate zoning, taxation, or issue outright bans — but not selectively preserve certain gambling verticals while prohibiting others. As a result, cities such as Iași, which intend to ban slot halls while allowing sports betting and lottery operations, may soon face legal challenges.

BMA Legal partner Narcis Bogoiu expects a prolonged wave of litigation as operators seek to challenge inconsistent local regulations and contest blanket refusals from municipalities.

At stake is one of the largest gambling markets in Eastern Europe. According to H2 Gambling Capital, Romania’s land-based gambling sector generated approximately €1.67 billion annually in 2025, accounting for roughly one-third of the country’s total gambling market.

For more than two decades, much of that growth was fueled by the rapid expansion of slot halls. Romania currently hosts around 1,310 officially licensed gaming halls operated by roughly 69 licensed companies. But mounting taxes and regulatory pressure are now accelerating closures and driving consolidation throughout the industry.

“There has been visible consolidation, especially around operators with online scale and strong local brands,” Bogoiu explained, pointing to Evoke’s acquisition of Winner.ro in 2024 and Super Technologies’ purchase of MaxBet’s Romanian and Maltese businesses. “The main driver still looks commercial, but regulatory and tax pressures clearly amplify the logic of consolidation.”

As conditions worsen for retail gambling, many operators are increasingly shifting their focus toward online gaming. Some are actively transforming into omnichannel businesses in an attempt to survive the changing environment.

Game World, one of Romania’s leading land-based gambling brands, is reportedly exploring the launch of online operations, a move company representatives say has become increasingly urgent since the February reforms.

According to Rombet, adopting an omnichannel strategy has become “essential” in today’s market conditions.

“Purely land-based models can still survive, but they are becoming less resilient and more niche,” Ghita said.

Frimescu revealed that several operators have already begun abandoning large portions of their retail footprint.

“One major operator has already closed 60 locations and is planning to shut down a further 100,” he said. “In total, around 160 venues are being withdrawn from the market. At each closed location, notices have been posted on the facade informing customers that they have moved online.”

The migration toward digital gambling is already reflected in market data. Online gambling accounted for roughly 52% of Romania’s gambling market in 2023. Today, according to H2 Gambling Capital, that figure has risen to approximately 71%, with further growth expected in the coming years.

At the same time, industry stakeholders warn that excessive restrictions risk strengthening Romania’s illegal gambling market.

“International experience consistently shows that banning or excessively restricting a regulated activity does not eliminate demand – it redirects it,” Ghita warned. “In Romania, widespread local bans or excessive taxation would likely push players toward illegal, unlicensed operators, reduce tax revenues, lead to job losses and weaken regulatory oversight.”

Ghita described Romania as standing at a “critical turning point,” arguing that upcoming political and regulatory decisions will determine whether the gambling market remains sustainable or becomes excessively overregulated.

Already, many operators are pulling back from expansion plans and focusing primarily on compliance and survival.

“Operators are prioritising compliance over expansion, delaying or scaling down new investments, reassessing long-term strategies,” Ghita explained.

Further restrictions may still be on the horizon. Romanian lawmakers are currently considering raising the minimum legal gambling age from 18 to 21, while another proposed bill would significantly tighten advertising rules by restricting online promotions and banning the use of public figures in gambling marketing campaigns.

According to Bogoiu, the industry’s future now depends on several key developments.

“Operators should watch: first, whether those two bills pass in substantially the same form; second, how municipalities draft their local gambling regulations inside the new 2026 framework; and third, whether ONJN issues further operational guidance around local authorisation,” he concluded.

The answers to those questions may ultimately determine whether Romania’s gambling industry can adapt and survive — or whether the country’s once-dominant land-based gaming sector will continue its steady decline toward extinction.

By fLEXI tEAM