Audit Reveals ONJN Failed to Monitor Online Operators

Can regulatory failures cost a country billions in gambling revenue? A damning audit of Romania’s National Gambling Office (ONJN) suggests just that. The Romanian Court of Accounts has found that ONJN failed to monitor online gambling operators, allowing possible tax evasion and lost state revenue. The lack of regulatory oversight has raised serious concerns about unpaid fees, financial irregularities, and compliance failures. If urgent action isn’t taken, Romania risks further losses and growing loopholes in its iGaming sector.

Audit Exposes ONJN’s Failure to Monitor Online Gambling Operators in Romania

Key Points:

1. ONJN Failed to Monitor Online Gambling Operators

   • Since its establishment, ONJN never implemented proper monitoring systems to verify operator-reported revenue.
   • Auditors found RON 79m (€16m) in unpaid fees for 2022-2023 alone, with total losses potentially exceeding RON 1.8bn in 2023.

2. Regulatory Gaps Allow Operators to Potentially Underreport Revenue

   • Most online operators serving Romanian players are registered in Malta, where the minimum RTP requirement dropped from 92% to 85%.
   • Lower RTP values could allow operators to increase profits while underreporting taxable revenue.

3. ONJN Lacks a Structured Control System and Enforcement Plan

   • In 2023, ONJN operated without an annual control plan and failed to conduct tax verification actions.
   • The Responsible Gambling Promotion Service collected revenue but did not implement proper programs to prevent gambling addiction.

Audit Exposes ONJN’s Oversight Failures in Romania’s Gambling Sector

Romania’s National Gambling Office (ONJN) is under heavy scrutiny after a report from the Romanian Court of Accounts found that the regulator had failed to properly monitor online gambling operators, potentially leading to billions in lost state revenue.

The audit, published on February 21, 2025, revealed that since its creation, ONJN has never fully implemented its legal obligations to supervise remote gambling operators. This lack of regulatory oversight has opened the door for potential underreporting of gambling revenues and unpaid licensing fees.

Court of Accounts Statement:
“Since its establishment, the National Gambling Office (ONJN) has never monitored or controlled the activity of remote (online) gambling organizers and has not fulfilled its legal duties.”

Massive Revenue Discrepancies Uncovered

One of the most concerning findings in the audit was the failure to verify operator reports, leading to significant revenue discrepancies.

• RON 79 million (€16 million) in undeclared and unpaid authorization fees was uncovered for 2022-2023 alone.
• With penalties and interest, the total losses exceed RON 116 million (€23 million).
• The audit suggests that total lost state revenue may have reached RON 1.8 billion (€366 million) in 2023 and RON 1.2 billion (€244 million) in 2022.

Without direct access to operators’ servers, ONJN relied entirely on self-reported data from gambling companies, creating a high risk of financial misreporting.

Malta-Based Operators and the RTP Loophole

Most online gambling operators serving Romanian players are registered in Malta, which in 2021 lowered its minimum Return to Player (RTP) requirement from 92% to 85%.

This created a potential loophole that allowed operators to:

• Adjust payout percentages to increase profits while reporting lower revenue.
• Potentially avoid paying full authorization and licensing fees to Romanian authorities.

This regulatory gap may have contributed to hundreds of millions in lost tax revenue, according to the audit.

ONJN’s Lack of Compliance and Responsible Gambling Failures

The ONJN audit uncovered serious regulatory inefficiencies, including:

1. No Tax Verification Measures:

   • Despite holding regulatory authority since 2014, ONJN never conducted a single tax control on remote gambling operators.

2. No Annual Control Plan in 2023:

   • The regulator operated without a structured plan, leaving compliance checks uncoordinated and ineffective.

3. Failure to Enforce Responsible Gambling Initiatives:

   • ONJN’s Responsible Gambling Promotion Service collected funds but did not implement meaningful programs to prevent addiction or protect minors.

4. Failure to Implement Monitoring Systems:

   • ONJN did not set up secure data terminals required by law to access real-time gambling operator data.

The audit recommends immediate implementation of secure regulatory access to operators’ servers, urgent control actions, and increased enforcement measures.

Legal Consequences and Government Response

The Court of Accounts has indicated it may refer the case for criminal investigation, stating that it is analyzing the possibility of notifying prosecution bodies regarding ONJN’s failures.

If further legal action is pursued, senior officials within ONJN may face accountability for financial mismanagement and regulatory negligence.

ONJN was established in 2013 under Government Emergency Ordinance No. 20/2013 and has been responsible for overseeing licensing, compliance, and market supervision of Romania’s gambling industry.

However, the audit findings highlight a decade-long failure to implement effective regulatory control, leading to potentially billions in lost state revenue.

What’s Next for Romania’s Gambling Industry?

With massive financial discrepancies and regulatory failures now public, Romania’s gambling sector is likely to face increased scrutiny from lawmakers and enforcement agencies.

Moving forward, the government will need to:

1. Implement real-time monitoring systems to access operator data directly.
2. Conduct urgent audits and tax verification actions to recover lost revenue.
3. Strengthen gambling compliance measures to prevent further financial losses.
4. Hold ONJN accountable for its failure to regulate the market effectively.

Industry experts believe a major regulatory overhaul may be required to restore public trust and ensure fair market oversight.

ONJN Faces Major Accountability Crisis Over Regulatory Failures

The Romanian gambling industry now faces a critical moment, with billions potentially lost due to ONJN’s failure to enforce proper oversight.

As the government considers legal action and regulatory reforms, the question remains: Will Romania take decisive action to fix these regulatory shortcomings, or will the industry continue to operate with minimal oversight?