Romania Plans Major Overhaul of Gambling Taxation
The new Romanian coalition government has proposed a sweeping reform of the gambling industry’s tax system, expected to generate over €1 billion in annual revenue.
Changes to Taxation of Winnings and Operators
Finance Minister Alexandru Nazare announced the introduction of a progressive tax scale on gambling winnings. Replacing the current flat 3% rate, the new structure is as follows:
| Winnings Amount | New Tax Rate |
|---|---|
| Up to €2,000 | 10% |
| €2,001 to €13,500 | 20% |
| Over €13,500 | 40% |
Additionally:
- iGaming operator fees will rise from 21% to 27%.
- Bookmaker tax rates will increase to 23%.
- A 6.5% tax will be introduced on lottery revenues.
- The fee per slot machine will rise from €5,300 to €5,800.
- The “sin tax” on slots will double — from €500 to €1,000 per machine.
- The consumer tax will increase from 3% to 4%.
Legislative Timeline
The draft legislation is open for public consultation until July 13, with final parliamentary review scheduled for August 3. This marks the sixth major reform of Romania’s gambling sector since 2018.
Broader Fiscal Measures as Part of a Comprehensive Tax Reform
Alongside changes to gambling taxation, the government introduced a broader fiscal package:
- VAT increase from 19% to 21%.
- Introduction of a 16% dividend tax.
- A 2% turnover tax on banks (applicable from July to December 2026).
- Freezing public sector pensions and salaries in 2026.
- Mandatory healthcare contributions (CASS) on pensions above 3,000 lei until 2028.
Prime Minister’s Position
Prime Minister Ilie Boljan stated he takes full responsibility for the proposed reforms. He emphasized that Romania has one of the lowest tax collection rates in the EU — under 30% of GDP — and the measures aim to prevent a financial crisis and reduce the deficit.
“If Romania is downgraded to junk bond status, we will face higher taxes, rising prices, reduced purchasing power, and increased borrowing costs.” — the Prime Minister warned.
He stressed that the current measures are temporary and that the government will soon present a second package, which will include:
- Reform of special pensions and exemptions;
- Reduction in the number of board members in state institutions;
- Optimization of state-owned companies and agencies;
- Decentralization and digitalization of public administration;
- Faster access to EU funds and prioritization of strategic investments.
Public and Opposition Response
Several trade unions in the healthcare and education sectors have staged protests outside Parliament, expressing discontent with the reforms. The opposition has announced plans to file a motion of no confidence. Nevertheless, the Prime Minister called for unity:
“Instead of dividing the country, let’s improve solutions together. A divided country is a weak country.”
Conclusion
The sweeping fiscal reform — affecting gambling taxation, dividends, pensions, and other areas — aims to stabilize Romania’s economy. Despite criticism, the government remains confident these steps are vital for long-term stability and fairness.