Romania Set to Overhaul Gambling Tax Regime Under New Coalition Government

Romania is poised to implement sweeping changes to its gambling tax framework, with major reforms outlined following the installation of the new Bolojan Cabinet on 23 June 2025. The reform push comes as part of a broader fiscal consolidation plan introduced by Prime Minister Ilie Bolojan and backed by the Pro-European Alliance—a coalition formed by the National Liberal Party (PNL), Social Democratic Party (PSD), and Save Romania Union (USR), with minority party support.

Finance Minister Alexandru Nazare, reinstated to his former post under the new administration, has been tasked with spearheading the overhaul. In a government briefing, Nazare cited the urgent need to clean up a sector long marred by loopholes and regulatory ambiguity. “We are increasing the authorisation fees and all other related taxes on gambling in a very significant amount. Upon authorisation, they increase by almost 30%… We want to give a very important signal regarding the taxation of gambling, which we know very well how harmful it is,” he stated.

A key feature of the reform package is the replacement of the existing flat 3% tax on player winnings with a progressive scale based on earnings. Winnings up to 10,000 lei (roughly €2,000) will now be taxed at 10%. For amounts between 10,001 and 66,750 lei (up to €13,500), players will pay a base of 1,000 lei plus 20% of the excess over 10,000. Winnings exceeding 66,750 lei will be taxed at 12,350 lei plus 40% on any amount above that threshold. This marks a departure from the previous system, which capped taxes at 11,650 lei plus 40% for top earners. To address concerns of tax compounding on high-stakes play, the government has included a deductible threshold in the new framework.

“Players who have winnings up to 10,000 lei will now have 10% withheld instead of 3%,” Nazare confirmed. “We want to send a very important signal regarding the taxation of gambling, which we know very well how harmful it is to vulnerable communities when left unchecked.”

Operators are also bracing for increased licensing and operational costs. Online gambling authorisation fees will rise from 21% to 27%, while retail betting authorisation will move up from 21% to 23%. Slot machine fees are increasing from €5,300 to €5,800 per unit, and the vice tax on slots is doubling from €500 to €1,000. Lottery proceeds will now be taxed at 6.5%. Although the government claims that the tax burden has been distributed fairly between consumers and operators, industry analysts caution that high taxation on winnings could drive players toward unlicensed platforms. “Players will always follow net returns,” one analyst noted. “If licensed sites become less competitive, the state loses control.”

The revised gambling framework is projected to contribute over €1 billion annually to state revenues and plays a central role in achieving milestones under the National Recovery and Resilience Plan (PNRR). These fiscal reforms, outlined in the Draft Law on Fiscal-Budgetary Measures, are currently under public consultation through the Ministry of Finance and are part of a broader package that includes increases to VAT, health contributions, and excise duties, as well as the phasing out of long-standing exemptions.

However, coalition partner USR has signaled that tax reform alone will not suffice. Following a series of scandals and supervisory failures within the Office for Gambling (ONJN), the USR has called for the creation of a new, independent regulatory body with greater oversight and enforcement powers. A recent audit revealed that ONJN failed to collect €900 million in unpaid licensing fees between 2019 and 2023. In response, USR is advocating for sweeping regulatory changes, including a new national gambling authority and the implementation of consumer protections such as a monthly gambling cap set at 10% of individual income, to be monitored by the Tax Authority (ANAF).

“USR’s position is clear—without robust oversight and player protection, we risk losing control of this sector again,” a party representative emphasized. The USR has also secured coalition support for strengthening the national self-exclusion system, advocating for real-time monitoring, stricter entry criteria, and expanded operator responsibilities.

While the Draft Law on Fiscal-Budgetary Measures has yet to take effect, the consultation window remains open until 13 July, with final government reviews expected by 3 August 2025. Policy analyst Stasya Yautodzyeva of 4H Agency noted that while some revisions may still occur, “core tax increases are unlikely to be rolled back.” She warned that the bill, if passed, would constitute the sixth major revision to Romania’s gambling tax laws since 2018. “There is a slim chance that a strong and coordinated industry response may influence certain aspects of the bill, potentially softening some of its harsher measures,” Yautodzyeva observed. “However, experience across multiple jurisdictions shows that restrictive fiscal and regulatory changes—especially when not paired with incentives or consumer protections—often push both operators and players towards offshore markets.”

“Sustainable regulation must strike a balance between enforcement and accessibility; otherwise, Romania’s well-intentioned reforms may unintentionally undermine the very goals they seek to achieve.”

By fLEXI tEAM