The Romanian gambling industry is experiencing a significant regulatory shift with the enactment of Order 771/2024 by the Romanian National Office for Gambling (Oficiul National pentru Jocuri de Noroc, ONJN). This new order, effective from August 29, 2024, outlines the framework for joint operations between gambling companies, marking a pivotal moment in Romania’s gambling regulatory landscape.
Order 771/2024: Key Changes and Their Implications
Order 771/2024 introduces a structured approach to joint ventures within the Romanian gambling sector, primarily focusing on how companies with Class I and/or Class II licenses can collaborate. The order mandates that joint ventures be formalized through written contracts, clearly specifying the responsibilities of each party involved. This requirement is intended to enhance legal clarity and operational transparency.
This new regulation builds upon recent amendments to Romania’s gambling laws, which previously allowed land-based operators to partner with entities lacking a B2B license. The introduction of Order 771/2024 aligns with these amendments by restricting such partnerships to B2B providers holding a Class II license. The order repeals any conflicting provisions from prior regulations, simplifying the legal framework governing joint operations.
Despite its clear intent, the order has drawn some criticism for its broad and somewhat vague language. According to Andrei Cosma, a Partner at Baciu Partners, the order falls short of providing detailed guidelines on structuring joint ventures between B2C operators and B2B providers. Instead, it reiterates general terms already present in existing legislation, potentially leading to varied interpretations and practical challenges for operators.
Market Response and Continued Growth
The Romanian gambling market has demonstrated remarkable resilience and attractiveness, even amid regulatory changes. Recent months have seen a surge in interest, with companies such as Oddsgate, ThrillTech, and 3 Oaks Gaming securing licenses or launching operations in Romania. Additionally, Wazdan has expanded its footprint through a partnership with Winmasters, underscoring the market’s ongoing appeal.
This growth trajectory has persisted despite recent regulatory and tax changes. For instance, a notable increase in gambling operation taxes in October 2023 did not deter foreign companies from pursuing Romanian licenses, highlighting the market’s robustness. The enduring interest from international brands suggests that while Order 771/2024 introduces new regulatory requirements, it is unlikely to impede the market’s expansion.
Navigating the New Regulatory Landscape
The introduction of Order 771/2024 presents both challenges and opportunities for operators in the Romanian gambling market. The emphasis on written contracts aims to provide clarity and prevent disputes in joint ventures. However, the order’s broad language may require operators to navigate legal uncertainties and adapt their strategies accordingly.
Operators will need to ensure that their joint venture agreements comply with the new requirements, which may involve renegotiating existing contracts or structuring new partnerships. Understanding the order’s implications and addressing potential legal ambiguities will be crucial for maintaining compliance and capitalizing on market opportunities.
Order 771/2024 represents a significant development in Romania’s gambling regulatory framework, bringing both clarity and complexity to joint operations. While the order aims to streamline regulatory oversight and enhance transparency, its general terms have sparked discussions about practical implementation.
As the Romanian gambling market continues to evolve, industry stakeholders will need to stay informed about regulatory changes and adapt to the new requirements.