Local Administrations in Romania Push for Increased Autonomy Over Gaming Operations
Romania is taking significant steps to overhaul its gambling sector, with the government proposing a draft bill that aims to provide municipalities with greater control over the licensing and regulation of gambling establishments.
The initiative, spearheaded by Nelu Popa, the mayor of Reșița, is part of Romania's ongoing efforts to regulate the gambling sector more effectively. The reform is designed to be tailored to each community's specific context, addressing concerns about unregulated betting shops and gaming halls that have been a persistent problem in both physical and online spaces.
Under the proposed draft bill, municipalities would have the right to license or ban gambling establishments based on local development priorities, urban planning, public order, and public health. This shift in regulatory control would diminish the National Gambling Office's (ONJN) role in overseeing the sector, with the draft bill also introducing new licensing taxes.
The reform is intended to provide genuine public control over an economic activity with significant social risks. The ministry emphasized the importance of securing funding for social assistance, public safety, and local services, and the local councils aim to introduce a direct levy to help mitigate the social impact of gambling.
The surge of unregulated betting shops and gaming halls, where operators seemingly disregard the rules, has been a concern highlighted by Popa. In response, the government has also been working to increase its oversight of the gambling industry, as evidenced by the country's work with international companies to impose more control over the industry.
Last week, the ONJN added 30 gambling websites to its blacklist due to unlicensed operations. In June, Romania asked Meta and Google to block illegal gambling ads and to aid the state's efforts to curb unauthorized gambling operations.
The proposed reform comes at a time when Romania is actively working on laws related to the gambling sector. The new government is also working to reduce a budget deficit estimated at 30 billion lei (approximately $7.1 billion), and the additional taxation for local councils included in the draft bill could potentially contribute to this effort.
If passed, the bill would allow municipalities to regulate gambling based on their specific needs and circumstances, marking a significant shift in the country's approach to gambling regulation.
