Romanian Govt To Increase Taxes On Gambling, Almost Four Times For Casinos

The Romanian Government plans to significantly increase taxes on gambling, by up to four times in the case of casinos, and will make having a license and a minimum share capital mandatory, according to a draft emergency ordinance developed by the Finance Ministry and obtained by MEDIAFAX.

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Imaginea articolului Romanian Govt To Increase Taxes On Gambling, Almost Four Times For Casinos

Romanian Govt To Increase Taxes On Gambling, Almost Four Times For Casinos

The taxation system will also cover the National Lottery, which will keep its exclusive right on certain gambling.

The draft provides for an annual gambling tax of 800,000 lei (EUR1=RON4.1811) for lottery games and RON400,000 for mutual bets, while fixed quota bets will be taxed at 5% of the organizer’s revenue, but no less than RON300,000.

Gambling in casinos will be taxed annually by RON250,000 per table in Bucharest, and RON150,000 per table in casinos outside Bucharest.

Every slot-machine will incur a tax of RON4,800 and bingo games will be taxed by RON45,000 per room, as well as 5% of the nominal value of the tickets bought from the National Printing Office.

Current legislation imposes annual authorization taxes computed per casino table or electronic winnings machine. Machines are taxed by RON1,669.5 per year, while tables are taxed depending on the game.

For a roulette table, the annual authorization tax is now RON99,124.4 in Bucharest and RON53,200 in the country, while a card or dice game table is taxed by RON66,800 in the Capital and RON33,400 in the country.

The draft ordinance also stipulates a fee on the license to organize gambling, from RON25,000 for slot machines, to RON50,000 for bingo games held in bingo rooms, to RON200,000 for mutual and fixed quota bets, up to RON500,000 for lotteries and casinos. A minimum share capital will also be a condition for the issuance of a gambling license.

The minimum capital will be between RON30,000, in the case of entrepreneurs providing slot machines, RON100,000 for bingo games, RON500,000 for mutual bets, RON1 million for fixed quota bets and casinos and RON2 million for lotteries. The minimum amounts are added together if the same organizer requests a license to hold several types of gambling.

The gambling organizing license is valid for five years, while the gambling use license is valid for one year.

Romanian authorities reckon their yearly revenue will increase from RON101.2 million in 2009 to RON202.4 million in 2010, RON222.6 million in 2011, RON244.9 million in 2012 and RON269.4 million in 2013. Right now, license fees bring in around RON118.8 million.

At the moment, 1,163 firms hold 57,809 electronic winnings machine licenses, 14 firms operate bingo rooms, 22 firms operate casinos, with at least 10 special gambling tables, 24 provide sports bets, 4 firms provide gambling through predictions, lotteries, raffles, interactive games held through telephone or other communication methods, and one firm operating games broadcast through television.

When the draft emergency ordinance will be adopted, the number of such firms is expected to drop to 798.

The need for new rules derives from the fact they no longer comply with economic, technical and “conceptual” realities in gambling.

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