European Gaming Lawyer magazine Autumn 2017 | Page 9

G
Ana-Maria Nistor
Andrei Tercu
Laura Capătă
ambling is a growing industry in
Romania. According to a
Euromonitor survey, Romania’s
gambling revenues ranked 47th in
the world and 4th in Eastern Europe
out of 100 countries, with estimated total revenues of
EUR 153 million for 2016. According to the same
source, the gaming sector in Romania will reach about
EUR 200 million in 2020; Romania’s compounded
annual growth rate of 7% (CAGR), outpaces the
global market which will grow by 6.2% (CAGR).
Th e growth of Romania’s online gambling industry
can be traced back to the 2015 reform of Romania’s
current legislation for online gambling.
Prior to 2015, Romania had been under constant
criticism from the European Commission and
industry stakeholders because of cumbersome
requirements applicable to EU and EEA gambling
operators interested in operating gambling activities
in Romania. Romania’s failure to create an authority
responsible for online gambling licensing was also
a problem. By adopting the current legislation,
Romania’s National Offi ce for Gambling (the “Offi ce”),
was able to address these criticisms and remedy the
irregularities that had prevented gambling operators
from establishing online gambling businesses in
Romania.
Th e change resulting from the 2015 gambling
legislation was radical. Th e new legislation introduced
functional licensing and authorisation requirements
for online gambling, as well as related activities such
as the sale, lease, production, distribution, marketing
and maintenance of gambling activities. Here is
what you should know about Romania’s gambling
legislation:
Online gambling products defi ned
Under Romanian law, gambling, referred to as “games
of chance”, require the following four elements: (a)
participation based on a fee; (b) potential material
winnings off ered by the organizer; (c) award of the
winnings based on chance or risk; (d) Offi ce approval
of the rules governing the award of winnings. All
games of chance meeting these criteria which are
made available via a communication system (e.g.
internet, mobile or landline) are considered “online
gambling”.
Romanian law expressly regulates “common”
gambling products and provides straightforward
legal requirements. Th ese expressly regulated
products include: online betting (fi xed odds betting,
pari mutuel betting and exchange betting); online
casino games (including online poker and online
slot-machines); remote bingo games; online tombola
(raffl es); keno games, and remote lottery games.
However, the law is still insuffi ciently adapted for
new types of gambling - such as e-sports and daily
fantasy sports games - which do not fall clearly into
one particular category of online gambling. For
example, the law inadequately defi nes the “risk”
element – making it diffi cult to determine whether
certain skill games also constitute gambling activity.
Romanian law does not distinguish between various
types of risk or whether the participant’s skill was a
factor in obtaining the winnings. Consequently, given
the broad defi nition of gambling under Romanian
law, a skills game which includes an element of
risk (irrespective of the type of risk or contribution
of the participants in the fi nal result) may qualify
as gambling and be subject to the regulatory
requirements provided by the law. However, it is
debatable whether skill games played through online
platforms would qualify as online gambling when
the risk element is insignifi cant compared to the
participant’s skill in obtaining the winnings.
Licensing and authorisation requirements
Although the law generally establishes a state
monopoly over the organization and operation of
gambling activities, any private operator has the right
to carry out online gambling in Romania, subject to
prior authorization and licensing by the Offi ce.
Th e Offi ce is active in monitoring gambling
operators’ compliance and regularly sanctions
gambling operators - who are included on offi cial
blacklists - for their failure to observe licensing and
European Gaming Lawyer | Autumn Issue | 2017 | 9