LEGISLATIVE CHAOS AND ITS EFFECTS ON GAMBLING 452a3o

Lawyer Prof. Marius PANTEA, PhD 1i2jc

A brief overview of the current events we are experiencing reveals a deeply complex and challenging period: a war at our borders lasting over three years, the onset of a trade war initiated overseas, stock markets displaying extreme volatility, and, to top it off, the cancellation of elections followed by a new electoral campaign. 6a3m2j

by Lawyer Prof. Marius PANTEA, PhD 5h423z

These developments have divided the Romanian society and are placing an extraordinary pressure on the finances of this country. To navigate these challenges successfully, we must understand that we are pro-American Europeans, and above all, we must pursue our economic and financial interests, as all democratic nations do. In this intricate and uncertain context, the government decisions must identify immediate and effective measures to reduce the budget deficit, and one such measure may be the proper regulation of the gambling industry, which has the potential of partially restore the sustainability of public finances.

We have previously signaled, through multiple articles, the fury with which the legislator and the executive have recently modified the legal framework regulating the gambling activities. After their publication in the Official Gazette, ONJN was supposed to implement them, which is why, since their adoption, it has not been possible to find solutions to put into practice the foolishness invented by the enlightened minds that have devised incomprehensible texts, which amend or supplement articles and which make neither reference nor are they linked to other articles which are contradictory. This may, perhaps, explain the results of the simulation of the National Assessment in Romanian language and literature, where 35% scored below ing grade, and perhaps most of them will end up as future lawmakers in a few years’ time.

One example is the obligation to pay contributions to the Fund for the promotion of compliance with the principles and measures on socially responsible gambling managed by ONJN, for slot machines. For the previous year, each operator was required to pay €300 annually for each authorized slot during 2024, and for the current year this amount being increased to €500 annually. The payment deadline is January 25 of each calendar year. The licensed operator should receive from the Office, according to Order 142/2023¹, a document entitled “Notification of Payment of Budgetary Claim“, which serves as the basis for making the annual contribution payment to the National Gambling Office. Unfortunately, the provisions of art. 10 para. (4) and (6) do not provide clarity on how to calculate the amount due when the number of authorizations issued during the year is variable. A gaming operator may, during the course of a calendar year, hold a minimum of 75 licenses and may license or take out of service an infinite number of gaming machines. What is the amount to be paid by January 25? How is this amount determined and why has ONJN not issued the documents required under Order 142? The specialized department within ONJN should have issued (by virtue of the fact that these amounts qualify as budgetary debts as of the collection date), prior to January 25, the “Notice of Payment of Budgetary Debt“, and subsequently, if the licensed gaming operator failed to pay the amount on the due date, the Office should have issued: “Notification – Writ of Enforcement”, “Summons” and finally “Decision on Accessory Budgetary Obligations Representing Interest and Penalties for Late Payment“, documents that had to be notified including to the National Tax Authority (NAFA), in order to enable the necessary enforcement measures in such cases.

¹ Order No 142 of August 7, 2023 for the approval of the models of some forms issued and used in the field of collection of the budgetary debt representing the annual contribution regulated under art. 10 para. (4)-(6^1) of the Government Emergency Ordinance no. 77/2009 on the organization and operation of gambling activities, as well as the characteristics of printing, dissemination, use and storage of these forms

GAMBLING

After January 25 of this year, it was established that DGAJN would no longer accept authorization files unless proof of payment of the amounts due to the fund was provided, first for the year 2024, and then for the year 2025, without the Office having issued any Notice of payment of the budget debt in this regard. This decision, unwritten, was communicated verbally to the gambling operators resulting in a situation where, by March 2025, some operators were able to reauthorize the slot machines, while others were not, while a third category was specifically required to submit a sworn statement (a kind of Payment Undertaking – invented by who knows who) whereby the Director undertakes to pay the amount due by April 25 of this year.

The ONJN Supervision Committee’s meeting on March 31, 2025, placed in an unprecedented situation, where some reauthorization files were approved while others were not, leaving the latter in highly challenging circumstances. As a result of the non-approval of the reauthorizations, companies are forced to shut down many of their operational sites due to falling below the minimum required number of authorized gambling devices/locations, pushing them to the brink of bankruptcy, due to a measure applied arbitrarily by the Responsible Gambling Promotion Service within ONJN.

On the other hand, the inconsistent application of legal provisions across all gambling operators can only lead to unfair competition within the traditional gambling market, this being the second instance of such an issue since the last legislative amendment. Specifically, we are referring to the forced cessation of gambling operations in localities with fewer than 15,000 inhabitants, followed by challenges to the measures ordered by the Supervisory Committee and their suspension by the courts which has allowed some operators to continue their activities until the expiration of their licenses, while others have been forced to shut down their gambling devices, resulting in significant financial and reputational losses.

We should also highlight the revolution in interpretation by certain individuals within the Office regarding long-established legal rules (in force for over 10 years). For example, the new stance that any delay, even by a single day, in paying taxes is no longer acceptable—despite guarantees amounting to millions of euros, which can be legally enforced by tax authorities, and for which there is a legally defined deadline for replenishment. Additionally, there is the issue regarding self-exclusion: the new interpretation states that if an individual self-excludes from one domain, they must automatically be excluded from all domains, despite the fact that the ONJN has yet to establish a comprehensive database for this purpose.

In conclusion, while the legal provisions establish an obligation to pay into the ONJN fund, the method of calculation remains unclear, the documents required by the Order of the President are not being issued, and operators are verbally required to pay certain amounts into the Office’s , under the threat that their files will not be submitted for authorization, while Committee are being misled by the provided documents, resulting in some operators receiving authorizations while others do not. Does no one see the chaos created in this area?

If, for years, not a single penny has been allocated to prevent and combat addiction, it may be time to allow operators to deduct a portion of the amount paid to the ONJN fund and use it for educational purposes, so we propose that part of these funds be directed towards educating the population, particularly in pre-university education, since Financial Education is a compulsory subject, we suggest training teachers to educate young people about the risks and benefits of gambling. It is crucial that gambling be viewed as a form of entertainment, not a means of getting rich quickly.