GO no. 15/2022: modification of the licensing and authorization fees for gambling organizers

Government Ordinance no. 15/2022 amends and completes the Government Emergency Ordinance no. 77/2009 regarding the organization and operation of gambling and was published in the Official Gazette no. 716 of July 15, 2022 introducing the following changes:

• new rules regarding the promotion fee
• redefining remote casino and raffle games
• changing the term of payment of the contributions of the licensed gambling organizers
• modification of the ONJN notification period regarding the changes made to the data on which the license to organize games of chance or the authorization to operate games of chance was issued
• special rules for cases in which the economic operator no longer holds a gambling license or wishes to cease the activity
• changing the level of guarantees to cover the risk of non-payment

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1. A new regulation for the promotion fee:

Agreements for the promotion of brands, platforms, applications or gambling activities by placing advertising messages in cities and on public roads or through a television service, as well as any act that changes the value of the contract must be notified to the ONJN by the organizer of games of chance within 5 working days from the date of their conclusion. Agreements concluded by gambling organizers with sports entities or federations, which provide for the obligation of promotion in the stadiums or sports halls, do not fall under the scope of this new rule.

Gambling organizers owe promotion tax for gambling activities. In the case of advertising agreements having as their object the promotion in one of the ways provided above of gambling activities authorized on the territory of Romania, which are concluded by an entity that is not a gambling organizer, the fee is owed by the provider of advertising services, according to the contract.

The tax for the promotion of gambling activities represents 5% of the value of the advertising agreement mentioned above and will be paid to the state budget by the 25th of the month following the one in which the advertising contract was concluded. In the case of contracts that provide for periodic payments to the provider, the fee payment obligation becomes due on the last day of the month in which the periodic contractual rate is due.

The amount owed is calculated by the taxpayers and declared, until the payment deadline, in the tax declaration submitted to the competent tax authority. The model and content of the declaration are approved by order of the president of the National Tax Administration Agency, within 30 days from the date of entry into force of this ordinance.

For ongoing advertising contracts, the promotion fee is declared and paid within a maximum of 30 days from the date of entry into force of the order of the president of the National Fiscal Administration Agency.

2. Redefining the remote casino games and sweepstakes

Casino-type games – at distance (online) – represent all games of chance, defined in lit. c)-e), which are carried out entirely other than in the physical presence of the players, organized by the same operator, on the same game platform, which uses at least one internet domain and which are organized and transmitted by means of any communication system of internet type, fixed or mobile telephone systems and any other transmission systems and for which a gambling organizer has obtained a license and authorization from ONJN in Romania;

The raffle represents that activity of drawing numbers, letters or other symbols, regardless of the characteristics of the mechanical, electronic, digital or video devices used to generate them or to carry out the draws – cups, urns, wheels and other such means, where the prizes awarded are fixed and do not depend on the number and price of sold tickets, coupons, tokens and other means that certify participation in the raffle. Winners – a predetermined number of participants – will be determined by random drawing in accordance with a regulation posted in advance and approved by the ONJN Supervisory Committee. The raffles can be conducted as a remote game of chance or as a traditional game of chance with the possibility of physical presence of the players, and the prizes can only be in kind, their value cannot be less than 50% of the total value of the tickets issued for the purpose of carrying out the game.

3. Modification of the term of payment of the contributions of licensed gambling organizers

The terms of payment of the contributions of gambling organizers are changed as follows:

• for the first year of the degree, within 10 days from the date of approval of the documentation, and for the following years, until January 25 of each year;
• in the event of the termination of the validity of the license, for any reason, for the license year in which the factual situation occurs that has the effect of the termination of its validity, the annual contribution is due in full.

4. Modification of the deadline for notifying ONJN regarding the changes made to the initial data on which the license to organize games of chance or the authorization to operate games of chance was issued.

Economic operators organizing games of chance will notify ONJN, within 48 hours, by online submission or within 5 working days from the date of registration, for submission by post or at the ONJN registry, of any significant change made to the initial data on the basis of which the license to organize games of chance or the authorization to operate games of chance, respectively the second-class license, as the case may be, was issued. Significant changes will be established by order of the ONJN president. within 30 days from the date of entry into force of this ordinance.

5. Special provisions if the economic operator no longer holds any gambling license or wishes to cease activity.

If the economic operator no longer holds any authorization to operate gambling, the license to organize gambling loses its validity on the same date.

If a gambling organizer wants to stop the activity before the expiration of the validity of the organization license and the operating authorizations issued in his favor, he has the obligation to notify ONJN in this regard and at the same time to pay the outstanding fees related to the conduct of the gambling activity.

6. The Supervisory Committee of ONJN orders the cancellation of the license to organize games of chance or the authorization to operate games of chance,

as well the class II licenses for related activities, as the case may be, when it is found that on the date of granting of the license, the applicants have provided incorrect or inaccurate information, which, if known, would have led to the non-granting of the license to organize games of chance or the authorization to operate games of chance, as the case may be.

In this situation, a new request for authorization can be made after at least 5 years from the date on which the cancellation decision becomes final in the system of administrative appeals or from the date of the final court decision. The effects of the cancellation do not affect the prizes awarded to the participants of the games of chance who acted in good faith. In case of cancellation of the license or the authorization to organize games of chance, the amounts collected by the organizer/class II licensee will be confiscated and made income to the state budget.

7. The level of guarantees to cover the risk of non-payment is as follows:

a) 167 euros for each electronic machine with winnings or station, as the case may be, whose owner is the organizer, or 300 euros for each electronic machine with winnings, but not more than 60,000 euros at the level of a single organizer, including for gambling activities for which temporary exploitation authorizations are requested;

b) 10,000 euros for each gaming table on the premises of the casino, but no more than 175,000 euros at the level of a single organizer, including for gambling activities for which temporary exploitation authorizations are requested;

c) 5,000 euros for each hall where bingo games are organized, but no more than 7,000 euros at the level of a single organizer, including for gambling activities for which temporary operating authorizations are requested;

(…)

j) 33,000 euros for the Bucharest location of a poker club, 23,000 euros for the country location of a poker club, but no more than 55,000 euros at the level of a single organizer and 50,000 euros for the entire activity of the type game organizer Poker Festival;

k) 10,000 euros for the activity of the economic operator organizing raffle-type games of chance, for each location where the raffle is organized and operated – a traditional game;

l) 100,000 euros for remote raffle games – online.

8. The annex is amended and replaced by the annex to this ordinance.

ANNEX (Annex to Emergency Government Ordinance no. 77/2009)

1. Annual fees charged for gambling activities

I. Fees related to the license to organize games of chance (annual)

A. For lotto games: 135,000 euros
B. For mutual bets: 54,000 euros
C. For fixed odds bets: 100,000 euros
D. For counter bets: 100,000 euros
E. For games of chance characteristic of casinos: 115,000 euros
F. For the characteristic games of the poker club: 17,500 euros
G. For slot-machine type games: 75,000 euros
H. For bingo games held in gaming rooms: 11,500 euros
I. For bingo games of chance organized through the systems of television networks: 90,000 euros
J. For remote gambling, 3 categories of licenses are granted as follows:

Class 1 license for remote gambling provided in art. 10 para. (1) lit. i)-n) of the emergency ordinance. It is granted to remote gambling operators who have a direct contract with the player and is calculated according to the organizer’s turnover as follows:

Turnover	Annual fee
Up to 500,000 euros/year	15,600 euros
500,001-1,000,000 euros/year	62,400 euros
1,000,001-5,000,000 euros/year	156,000 euros
5,000,001-10,000,000 euros/year	249,000 euros
Over 10,000,000 euros/year	312,000 euros

Class 2 license for legal entities involved in traditional and remote gambling, as well as for conformity assessment bodies. Is granted to following:

1. operators providing management and hosting facilities on the gaming platform, other than providers of electronic communications networks and services, as defined in Government Emergency Ordinance no. 111/2011 regarding electronic communications, approved with amendments and additions by Law no. 140/2012, with subsequent amendments and additions, 9,500 euros/year;
2. economic operators who carry out the activities provided for in art. 20 para. (1) from the emergency ordinance: 9,500 euros/year;
3. payment processors: 9,500 euros/year;
4. companies producing and/or distributing software specialized in the field of gambling: 9,500 euros/year;
5. affiliates: 9,500 euros/year;
6. certifiers: 9,500 euros/year;
7. auditors: 9,500 euros/year;
8. conformity assessment bodies 9,500 euros/year.

3rd class license for lotto games – remote – state monopoly provided for in art. 10 para. (1) lit. h) from the emergency ordinance. Awarded to the operator of lottery-type games: 150,000 euros.

K. For the Poker Festival: 10,000 euros
L. For temporary casino type games (valid for 3 months): 25,000 euros
M. For temporary slot-machine type games (valid for 3 months): 6,500 euros
N. For temporary bingo games in the hall (valid for 3 months): 3,000 euros
O. For raffle type games – traditional game: 15,000 euros
P. For video lottery games – traditional game: 60,000 euros

II. Fees related to the authorization to operate games of chance (annual):

A. For traditional lotto games: 200,000 euros
B. For mutual bets – traditional: 21% of the revenues from games of chance, made at the level of the organizer, as defined in art. 11 of the emergency ordinance, but not less than: 100,000 euros
C. For fixed-quota bets – traditional: 18% of gambling revenues, made at the level of the organizer, as defined in art. 11 of the emergency ordinance, but not less than: 100,000 euros
D. For counterparty bets – traditional: 21% of gambling revenues, made at the level of the organizer, as defined in art. 11 of the emergency ordinance, but not less than: 100,000 euros
E. For games of chance characteristic of casinos:
i. for each table, in the city of Bucharest: 65,000 euros
ii. for each meal, in locations other than Bucharest: 35,000 euros.
F. For the poker club:
i. for each location, in the municipality of Bucharest: 75,000 euros
ii. for each location, in locations other than the municipality of Bucharest: 35,000 euros.
G. For each slot machine game:
i. slot machine class A: 4,600 euros
ii. limited risk electronic devices awarding profits class B: 2,000 euros
H. For bingo games held in gaming rooms: 7,000 euros for each room, as well as 5% of the nominal value of the cards purchased from the National Company “Imprimeria Națională” – SA, which is paid in advance at the State Treasury, upon presentation of the order of payment referred to by the treasury when picking up the cartons
I. For bingo games of chance organized through the systems of television networks: 23% of the revenues from games of chance, made at the level of the organizer, as defined in art. 11 of the emergency ordinance, but not less than: 130,000 euros
J. For distance games of chance class 1: 23% of the revenues from games of chance, made at the level of the organizer, as defined in art. 11 of the emergency ordinance, but not less than: 120,000 euros
K. For distance games of chance 3rd class: 23% of the revenues from games of chance, realized at the level of the organizer, as defined in art. 11 of the emergency ordinance, but not less than: 115,000 euros
L. For the Poker Festival: 25,000 euros
M. For temporary casino-type games – valid for 3 months: 20,000 euros for each table
N. For temporary slot-machine class A games – valid for 3 months: 1,000 euros
O. For temporary bingo games in the hall – valid for 3 months: 1,750 euros, for each location, as well as 5% of the nominal value of the cards purchased from the National Company “Imprimeria Națională” – SA, which is paid in advance at the State Treasury, with the presentation of the payment order referred to by the treasury when picking up the cartons
P. For raffle type games – traditional game: 75,000 euros for each location where the raffle activity – traditional game is organized and exploited, as well as 5% of the face value of the raffle participation tickets purchased from the National Company “Imprimeria Națională” – SA, which is paid in advance at the State Treasury, with the presentation of the payment order approved by the treasury when picking up the tickets.

2. The minimum amount of the subscribed and paid-up capital on the date of the application for the license to organize gambling*)

*) In the situation where the same organizer applies for a license to organize games of chance involving the use of several categories of gambling means, the condition of the existence of a minimum value of the subscribed and paid-up social capital on the date of the application for obtaining the license to organize games of chance are applied cumulatively.

A. For organizers who operate lotto games: minimum 2,000,000 lei
B. For organizers operating mutual bets: minimum 1,000,000 lei
C. For organizers operating fixed odds bets: minimum 1,000,000 lei
D. For organizers who exploit bets in return: minimum 1,000,000 lei
E. For organizers who exploit games of chance characteristic of casinos: minimum 1,000,000 lei
F. For the organizers who exploit the slot-machine type games: minimum 30,000 lei
G. For organizers who operate bingo games held in gaming rooms: minimum 100,000 lei
H. For the organizers who operate the online games of chance defined in art. 10 para. (1) lit. h)-n) of the emergency ordinance: minimum 1,000,000 lei
I. For the organizers who exploit bingo games of chance organized through the television network systems: minimum 1,000,000 lei
J. For organizers of temporary games: minimum 1,000,000 lei
K. For organizers of poker festivals: minimum 100,000 lei
L. For organizers of poker clubs: minimum 100,000 lei
M. For the organizers of raffle-type games of chance – traditional game of chance: minimum 100,000 lei

3. Special fees

A. For video lottery – VLT: 3% applied to the gambling income of the licensed operator. The tax is transferred in full to the state budget up to and including the 25th of the following month for the previous month.
B. Access fee – entry ticket:
i. for games of chance characteristic of casinos: 50 lei
ii. for games of chance characteristic of poker clubs: 30 lei.
C. Vice tax for slot-machine games of chance provided for in art. 10 para. (1) lit. e) point (i) and for the video lottery – VLT: 500 euros/authorized post/year, which is paid by the organizer together with the authorization fee, regardless of whether the authorized gaming device is in operation or not.
D. Administrative fees:
i. documentation analysis fee: 3,000 euros paid upon submission of the application for a remote gambling license, together with the submission of the documents provided for in the emergency ordinance;
ii. license issuance fee: 9,500 euros/license;
iii. 500 euro traditional gambling license request documentation analysis fee, upon submission of the request;
iv. 150 euro gambling authorization request documentation analysis fee, upon submission of the application for obtaining the exploitation authorization;
v. fee analysis documentation request integration of new games/recertification of games on the authorized remote gambling platform 150 euros, upon submission of the request.

4. The value in RON of both gambling fees and guarantees established in euro currency is determined by converting the amounts expressed in euro equivalents based on the exchange rate established on the first working day of October of the previous year, published in Official Journal of the European Union. This course is used throughout the following year.