Romanian Gambling Regulator Under Fire

Romania’s gambling watchdog is facing unprecedented scrutiny.

A damning audit report accuses the ONJN of financial mismanagement, potentially costing the state up to €900 million in lost gambling taxes.

Despite calls for accountability, ONJN President Gheorghe-Gabriel Gheorghe refused to appear before Parliament to answer lawmakers’ questions.

With mounting pressure, the government now faces tough choices on reforming gambling oversight to prevent further financial and regulatory failures.

Romanian Gambling Regulator Under Scrutiny After Rejecting Parliamentary Summons

Key Developments in the ONJN Scandal

• ONJN President Gheorghe-Gabriel Gheorghe refused to appear before Romania’s IT Committee to address regulatory failures.
• An audit found ONJN’s lack of oversight may have cost Romania between €630 million and €900 million in lost tax revenue.
• Lawmakers propose replacing ONJN’s role with the National Tax Agency (ANAF) and the National Bank for tighter gambling supervision.

Gambling Regulator Under Fire for Financial Oversight Failures

The Romanian National Office for Gambling (ONJN) is facing serious allegations of regulatory mismanagement and financial oversight failures following a damning audit by the Court of Accounts (CCR).

The report revealed that the ONJN failed to properly audit gambling licenses, enforce tax collection, or verify return-to-player (RTP) compliance, leading to potential massive tax losses for the state.

Despite calls for accountability, ONJN President Gheorghe-Gabriel Gheorghe refused to appear before Parliament’s IT Committee, questioning the authority of the Save Romania Union (USR) to summon a regulatory agency.

Parliament Demands Answers, Gheorghe Declines to Appear

Diana Stoica, a USR deputy, had called for Gheorghe to testify regarding the audit’s findings, which recommended a criminal investigation into the ONJN’s actions.

However, Gheorghe dismissed the summons, claiming the IT Committee lacked the expertise to interpret the CCR’s findings and that ONJN had already implemented corrective measures.

“ONJN is subordinate to the Romanian Government and, according to the Constitution and the laws in force, is accountable to parliamentary control. However, it seems that President Gheorghe Gabriel Gheorghe is not aware of this,” said Ciprian Rus, chair of the IT Committee.

Audit Uncovers Major Financial and Regulatory Failures

The CCR’s audit report painted a troubling picture of ONJN’s financial and regulatory oversight:

• Failure to Monitor Gambling License Fees – The ONJN failed to enforce licensing fees, allowing operators to underreport or avoid payments.
• Lack of RTP Compliance Checks – The regulator did not verify that operators met return-to-player standards, potentially leading to unfair practices.
• Inaction on Financial Data Verification – Gambling companies submitted unverified revenue reports, meaning the government could have lost up to €900 million in taxes.

ONJN blamed its outdated IT systems for its inability to properly monitor gambling transactions, but the CCR countered, saying it was the agency’s responsibility to modernize its technology.

Proposed Reforms: Calls to Strip ONJN of Its Oversight Role

In response to the scandal, the USR has proposed significant reforms to Romania’s gambling regulatory framework:

• Handing over land-based gambling supervision to ANAF (National Tax Agency).
• Placing online gambling regulation under the National Bank for stricter financial oversight.
• Introducing a cap on gambling spending – limiting players to 10% of their monthly income for both online and land-based gambling.

The proposed changes reflect a growing push for stricter gambling regulations in Romania to prevent further financial losses and social harm.

What’s Next for ONJN and the Romanian Gambling Industry?

• April 2024: Lawmakers will continue debating whether to restructure gambling oversight, possibly replacing ONJN with other regulatory bodies.
• Mid-2024: The government may introduce new gambling spending caps and financial restrictions to protect consumers.
• Potential Legal Action: The CCR’s call for a criminal investigation could lead to legal proceedings against former and current ONJN officials.

Will Romania Reform Its Gambling Industry?

Romania’s gambling oversight scandal has raised serious concerns about financial mismanagement and regulatory incompetence.

With billions in lost tax revenue at stake, the government must act decisively to restore public trust. Whether that means replacing ONJN, imposing stricter financial controls, or prosecuting those responsible, one thing is clear: change is coming for Romania’s gambling industry.