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Home » Romania gambling: municipalities gain veto powers

Romania gambling: municipalities gain veto powers

Bartosz Hrydziuszko by Bartosz Hrydziuszko
May 27, 2026
in Regulatory Compliance
Reading Time: 7 mins read
Romania's land-based gambling sector is in regulatory paralysis after GEO 7/2026 handed municipalities the power to ban slot halls and gaming venues outright.

Romania's land-based gambling sector is in regulatory paralysis after GEO 7/2026 handed municipalities the power to ban slot halls and gaming venues outright.

Romania’s land-based gambling sector has entered regulatory paralysis following a government emergency ordinance that transferred licensing authority from the national regulator to local councils, triggering a wave of ban proposals and leaving operators unable to plan, invest or in some cases continue trading.

The scale of the contraction is stark. Over the past two years, the number of slot machines in Romania has more than halved, falling from 80,000 to 36,000. An anonymous source at a major Romanian operator told iGaming Business the figure could fall to between 15,000 and 20,000 by year-end. “And this is the optimistic scenario,” the source said.

GEO 7/2026 and the Transfer of Power

The most disruptive change came on 25 February, when the government enacted GEO 7/2026. The emergency ordinance stripped the National Office for Gambling (ONJN) of its sole licensing authority over land-based venues and granted municipalities the power to restrict or ban slot machine halls and betting shops outright. Councils were also given the ability to set local zoning rules and impose new local taxes on top of existing national levies.

The move was not preceded by consultation or a transition period. Operators holding valid ONJN authorisations at the time of enactment were permitted to continue operating, but only until those annual authorisations expire. At that point they must either secure a local permit or cease trading. Official estimates put the number of localities likely to ban gambling at up to 200.

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Nine councils immediately drafted plans to prohibit slot halls, including Slatina, Brăila, Ploiești and Iași. Constanța signalled it would follow a similar path. In Bucharest, District 3 is pushing for a ban in the capital.

“The simplest solution is to eliminate these businesses entirely from the city. They are toxic for society.” — Mario De Mezzo, Mayor of Slatina

The decision also blindsided the councils themselves. Although the government set a 60-day deadline for drafting local proposals, only a handful of localities had formally announced their plans by the time that deadline passed in late April. There are currently no penalties for missing it.

Regulatory Catch-22

For operators on the ground, the immediate consequence is operational deadlock. Andrei Frimescu, director of communications at trade body Romslot, described the situation in direct terms.

“It has effectively become a Catch-22. We hold a valid national authorisation, but we cannot operate without a local permit. Yet in order to obtain the new local authorisation, we need that local permit and, in many cases, local authorities are not issuing them, so the industry is blocked.” — Andrei Frimescu, Director of Communications, Romslot

Political instability in Bucharest is extending the paralysis. A successful vote of no confidence ousted the sitting government, leaving the current administration as a lame duck with limited capacity to issue guidance. Clarity on the new local framework is unlikely to arrive quickly, and operators whose ONJN authorisations expire in the coming months face the prospect of falling into regulatory gaps with no clear route to reauthorisation.

This is the latest in a sequence of legislative pressures on the sector. In 2024, the government banned slot halls in towns with fewer than 15,000 residents and tightened zoning and advertising rules. In 2025, tax hikes raised online GGR levies to 27% and retail levies to 23%, and annual fees per slot machine increased by €1,000.

Patchwork Rules and Legal Risk

Councils facing these new responsibilities largely lack regulatory expertise. The responses emerging from different localities reflect that gap. Some are pursuing blanket bans. Others favour partial restrictions, such as prohibiting slot halls while allowing the national lottery and sports betting to continue. Several have proposed significantly higher local taxes, in some cases up to €1,500 per square metre, while others have attached conditions on the physical appearance of venues.

Dan Ghita, chairman of betting association Rombet, warned that this fragmentation undermines both national market coherence and the concept of the state lottery monopoly.

“The lack of a transition phase has amplified unpredictability, making it difficult for operators to plan investments or even maintain existing operations. If widely applied, this model risks creating inconsistent regulatory environments across the country, which undermines the concept of a unified national market and the concept of the state monopoly.” — Dan Ghita, Chairman, Rombet

Romslot argues that local councils are overstepping the powers actually granted to them by GEO 7/2026. Under the ordinance, councils may decide on taxes, zoning and whether to permit or ban gambling. They cannot selectively retain some gambling formats while banning others. Iași’s proposal to ban slot halls while keeping sports betting and lottery products will face a legal challenge on exactly that basis.

Narcis Bogoiu, a partner at commercial law firm BMA Legal, said extensive litigation is expected as operators challenge restrictive or inconsistent local rules. Romania’s regulators have previously demonstrated willingness to enforce hard boundaries in the market, but the new framework creates enforcement ambiguity that courts will need to resolve.

Consolidation and the Shift Online

Romania has been one of Eastern Europe’s largest gambling markets. In 2025, its land-based sector generated approximately €1.67bn annually, accounting for around a third of total market revenue, according to data from H2 Gambling Capital. The sector is built on approximately 1,310 gaming halls operated by around 69 licensed companies.

The current legislative environment is accelerating both closures and consolidation. Bogoiu cited Evoke’s acquisition of Winner.ro in 2024 and Super Technologies’ move to acquire MaxBet’s Romanian and Maltese operations as examples of an emerging pattern.

“There has been visible consolidation, especially around operators with online scale and strong local brands,” he said. “The main driver still looks commercial, but regulatory and tax pressures clearly amplify the logic of consolidation.”

At least one major operator has already closed 60 locations and plans to shut a further 100, with notices posted on closed venues directing customers to its online platform. Frimescu said around 160 venues in total are being withdrawn from the market.

The broader market data reflects this shift. Online gambling accounted for 52% of total Romanian market revenue in 2023. By current estimates, it accounts for 71%, according to H2 Gambling Capital. That share is expected to grow further.

Game World, a leading land-based operator, is reportedly considering launching an online operation. The urgency of that decision increased after February’s emergency ordinance. Rombet describes an omnichannel strategy as “essential” in the current environment.

“Purely land-based models can still survive, but they are becoming less resilient and more niche.” — Dan Ghita, Chairman, Rombet

Black Market and Tax Revenue Concerns

The ONJN’s own credibility is also a factor. The regulator faced multiple failed state audits in 2025 and was accused of failing to account for close to €1bn in gambling-related tax liabilities. ONJN President Vlad-Cristian Soare, who took over in May 2025, has outlined a 2026 programme focused on enforcement and transparency, and earmarked €5m for problem gambling prevention initiatives in partnership with local authorities. Whether that signals a constructive working relationship with the same councils that are now banning venues remains to be seen.

Legislation Still in the Pipeline

Two further measures are working through the legislative process. A bill to raise the minimum gambling age from 18 to 21 is under consideration, alongside a proposed advertising bill that could prohibit online gambling ads and the use of public figures in promotional material. Either measure would add further compliance pressure to operators already absorbing the effects of GEO 7/2026.

Bogoiu set out the specific factors the industry needs to monitor.

“Operators should watch: first, whether those two bills pass in substantially the same form; second, how municipalities draft their local gambling regulations inside the new 2026 framework; and third, whether ONJN issues further operational guidance around local authorisation.” — Narcis Bogoiu, Partner, BMA Legal

With a lame-duck government, a regulator rebuilding credibility after audit failures, and over 200 municipalities each arriving at their own conclusions about whether gambling should exist within their borders, Romania’s land-based sector is operating in conditions that have no clear resolution timeline. The answers to Bogoiu’s questions will define whether any significant land-based industry survives the current period.

Source: ONJN, iGaming Business, Ziarul Financiar, Romanian Parliament, Libertatea

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Bartosz Hrydziuszko

Bartosz Hrydziuszko

Bartosz Michael brings over a decade of expertise to the iGaming industry, specializing in European gambling markets, regulatory compliance, and operator analysis. With 233 published articles covering everything from licensing developments to market expansions across jurisdictions including the UK, Malta, Sweden, and emerging European markets, Bartosz has established himself as a trusted voice for industry professionals seeking actionable insights. His deep understanding of cross-border gambling regulations, responsible gaming initiatives, and compliance frameworks makes his content essential reading for operators navigating the complex European regulatory landscape. Throughout his 10+ years in iGaming journalism, Bartosz has developed extensive relationships with regulatory bodies, gaming authorities, and industry stakeholders across Europe. His investigative approach to covering licensing disputes, regulatory reforms, and market entries has helped operators, suppliers, and legal professionals stay ahead of legislative changes. Whether analyzing MGA directives, UKGC consultations, or Curaçao licensing reforms, Bartosz delivers comprehensive coverage that bridges the gap between regulatory complexity and practical business application, making him an invaluable resource for compliance officers and gaming executives alike

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