The Romanian Ministry of Finance has published its latest Fiscal Code draft featuring a massive 40% tax on casino withdrawals. The fresh code that contains additional updates to other important tax laws in the country has already sparked controversy among trade bodies in the industry. Among them, the Association of Remote Gambling Organizations (AOJND) voiced its opinion on the new tax on casino withdrawals.
Players May Turn to Illegal Gaming Websites
AOJND believes that provided the new tax would come into effect, it would force many players to direct their attention to operators outside the law, in an attempt to escape the huge tax. As a result, the country’s online gambling industry may pay up to 50% less in taxes because of the expected drop in activity. The association’s president Odeta Nestor called Romania ”a success story” in regards to its gambling legislation, adding that the government needs to promote an “attractive legislative and fiscal framework” to keep the same state of things in the future.
The association anticipates the losses would be present on all fronts, for players, licensed operators, and the government whose revenues would drop in the short- and medium-term.
According to AOJND data, over 80% of players who withdraw gambling winnings do not usually cash out more than 1.000 RON ($208), with most players cashing out only a few hundred RON (less than $100). Most players are not in it for the wins, but for the thrill of playing and getting rid of the daily stresses, stated Nestor.
Statistics also show that approximately 90% of the total online games in the country are played via licensed gambling websites.