Romania to Abolish Regulator “ONJN” Due to €1 Billion Losses
The Romanian government decided to dismantle the National Gambling Office (“ONJN”) after an audit revealed unpaid license fees amounting to $16.8 million for 2022–2023, as well as $24 million in missed payments including fines and interest.
Reasons for Abolishing ONJN
The Court of Accounts audit showed that Romania lost nearly €1 billion in gambling tax revenues between 2019 and 2023. These losses are attributed to ONJN’s ineffective performance, including:
- outdated IT systems;
- lack of control over RTP (return to player);
- incomplete accounting of licensed operators and their payments;
- difficulties implementing the 2019 tax reforms (introducing a 2% monthly tax on online gambling participation).
These issues led to a loss of public and political trust in ONJN.
Reform Attempts Under Vlad-Cristian Soare
Recent attempts to reform ONJN under the leadership of Vlad-Cristian Soare, appointed with hopes of “restoring order,” yielded no tangible results.
Despite claims of “integrity” and professionalism, actual changes proved ineffective. Soare proposed:
- modernizing internal systems;
- improving staff recruitment processes;
- collaborating with the National Agency for Fiscal Administration (ANAF).
However, these initiatives were deemed too late for an agency that had already lost credibility.
Legislative Reforms That Didn’t Happen
Among the planned reforms under ONJN’s supervision was the creation of a national self-exclusion system — allowing players to opt out of gambling through the regulator’s website. This would have marked a significant improvement over current procedures.
But implementation stalled again: the Senate’s Legal Committee postponed discussion of two bills, citing the need for additional legal expertise. Topics under review included:
- whether self-exclusion could be revoked;
- setting spending limits based on players’ income.
Meanwhile, lawmakers publicly stated that ONJN was failing in its responsibilities and proposed transferring its powers to the Ministry of Finance and ANAF.
Growth of the Shadow Market and Player Risks
While reforms stall, vulnerable players remain unprotected. According to addiction specialists and human rights organizations, delays in implementing responsible gambling measures are pushing users toward illegal operators, who:
- do not guarantee the protection of player data and funds;
- operate beyond the reach of local regulators.
This poses a threat of rapid growth in Romania’s illegal gambling market.
What’s Next: Powers to Be Transferred to Other Agencies
As a result of ONJN’s failure, the government decided to transfer its functions to the Ministry of Finance and the tax agency ANAF. This is expected to improve:
| ONJN Problem | Solution After Transfer |
|---|---|
| Lack of tax oversight | Enhanced supervision by ANAF |
| Outdated IT systems | Implementation of digital solutions by the Ministry of Finance |
| Lack of process transparency | Centralized oversight by the Ministry of Finance |
Thus, authorities aim to restore lost control over the sector and boost tax revenues.
Conclusion
ONJN failed to fulfill its core responsibilities in regulating the country’s gambling industry. Delayed reforms, weak IT infrastructure, and lack of public trust led to billions of euros in losses.
The new control model — involving the Ministry of Finance and ANAF — is expected to ensure stricter and more effective oversight.