register for tax purposes in Romania in order to declare and pay their annual license and authorisation fees .
Separately , operators are obliged to , individually , notify all players about how much they won from their gambling activities . Following this notification , each player must submit a statement to the tax authorities reflecting their winnings and the tax authority will determine the tax owed by the player .
Developments under way for the online gambling sector While it is true that online gambling in Romania has seen significant progress due to the 2015 legislation , this sector still requires further development and regulation .
Advertising of online gambling activities Presently , gambling operators can promote gambling on their own internet pages , without such activity being considered an “ advertisement ” under the law and hence subject to certain legal prohibitions .
However , a new draft law in Romania would introduce the following significant restrictions on the advertising of all gambling activities : 1 . advertising of gambling activities will be permitted only within the premises where gambling activities are organised and in gambling-specialised publications ; and
2 . audio-visual commercial communications regarding gambling activities will be prohibited .
Despite the draft law ’ s goal to protect vulnerable consumers and limit gambling addiction , it lacks clarity and substance and may prove to be insufficiently adapted to the realities of the gambling sector . Obviously its failure to explicitly address the use of online platforms to advertise gambling will result in confusion . Considering that the only means of advertising allowed under the draft law are those on the premises of gambling establishments and in gambling-specific publications , a plain reading of these provisions suggests that it outright prohibits online advertising of gambling activities . Also , the draft law may be understood as expanding the term “ advertising ” to include promotion on gambling operator ’ s own websites .
Whether the draft law allows advertising on online publications specialised in gambling is also unclear . Moreover , the draft law does not clarify whether the restriction applies only to audio-visual programmes licensed in Romania or also to programmes which are retransmitted in Romania but whose content is subject to the laws of a different jurisdiction , which may give rise to potential discrimination issues when the two types of programmes have similar content .
Anti-Money Laundering (“ AML ”) rules and potential impact on the gambling legislation Romania ’ s draft law implementing the fourth EU Anti-Money Laundering Directive is still in the pipeline . The current AML draft law contains stricter rules than those of the AML directive and has potential to negatively impact gambling operators .
The draft AML law requires all gambling operators to comply with the AML obligations , which include :
• obligations to report suspicious transactions , despite insufficiently clear criteria as to what type of information should be reported ;
• customer due diligence obligations covering extended circumstances , such as occasional transactions of EUR 15,000 , transfer of funds exceeding EUR 1,000 , and collection of winnings and casino related transactions exceeding certain thresholds ;
• client data recording obligations ( applicable for both new and existing clients ) which require collection of accurate identification information ;
• obligations to keep information , both in hard copy and electronic format , in a format which is admissible in judicial proceedings , for a period of five years .
Conclusion It is undisputed that through its recent reforms , Romania has established the necessary framework for a prospective online gambling industry , providing adequate tools for those interested in venturing into this sector . In light of the anticipated growth of the gambling sector in Romania , we expect further reform – as well as increased investment – in this sector over the next few years .
Ana-Maria Nistor is a senior associate in the CMS Commercial and Regulatory team in Romania . Ana-Maria coordinates our Gaming and Consumer Products sector group in Romania and is an active member of our pan- European TMT and Consumer Products industry-working groups . T + 40 21 407 3872 E ana-maria . nistor @ cms-cmno . com
Andrei Tercu is a senior tax specialist in the CMS Bucharest office with over eight years of professional experience advising a wide range of multinational and domestic businesses on both domestic and international tax , accounting , and financial reporting matters . T + 40 21 407 3854 E andrei . tercu @ cms-cmno . com
Laura Capătă is an associate in the CMS Bucharest competition and regulatory team , with broad advisory experience in general commercial , regulatory and competition law , including the gaming industry . T + 40 21 407 3825 E laura . capata @ cms-cmno . com
12 | European Gaming Lawyer | Autumn Issue | 2017