Romania Enforces Tiered Tax Increase on Gambling Winnings Amid Deficit Drive and Regulatory Scandal

Romania has implemented a new progressive tax structure on gambling payouts, coming into force from 1 August 2026 as part of a broader fiscal tightening strategy under Prime Minister Ilie Bolojan.

The policy shift forms a cornerstone of Bucharest’s efforts to rein in a national budget deficit currently sitting at 7 per cent of GDP—the highest across Central Europe and well above the threshold mandated by European Union fiscal rules. In a bid to satisfy commitments made to Brussels, the administration has introduced a three-tier withholding tax that ratchets up the state’s cut on player winnings across all income brackets.

Under the updated framework:

• Payouts up to RON10,000 (€2,000): Taxed at 4 per cent, up from the previous 3 per cent rate.

• Payouts between RON10,001 and RON66,750 (€13,350): Subject to a fixed base tax of RON400 (€80) plus a 20 per cent charge on any amount exceeding RON10,000.

• Payouts exceeding RON66,750: Incur a substantial levy of RON11,750 (€2,350) alongside a 40 per cent tax on the surplus amount.

Bolojan Anchors Fiscal Agenda Around Gambling Reform

Prime Minister Ilie Bolojan has placed the gambling sector at the heart of his initial tranche of economic reforms, pairing the customer tax hike with broader increases to value-added tax (VAT) and fuel excise duties.

Following their election in 2025 alongside President Nicu?or Dan, the administration has used its mandate to accelerate a sweeping reorganisation of the country’s betting laws and licensing protocols. The agenda is being driven by a broad four-party coalition comprising the PSD, PNL, USR, and UDMR—though each partner brings competing policy demands to the table.

The liberal USR party has proven to be the fiercest critic of the existing regulatory apparatus, demanding that the National Office for Gambling (ONJN) be stripped of key supervisory powers following troubling audit revelations last year. Concurrently, the social-democratic PSD has pressed for tighter public health protections, including raising the minimum legal gambling age from 18 to 21, though the measure has yet to secure legislative approval.

Anti-Corruption Drive Targets Gambling Regulator

The rollout of the new tax regime arrives at a turbulent moment for the ONJN, which is facing renewed corruption allegations.

National Anti-Corruption Directorate prosecutors have accused deputy director general Ana-Maria Badea of taking bribes to expedite regulatory approvals for commercial gambling products. Law enforcement authorities have formally petitioned the court for a 30-day preventive detention order, alleging that the transactions formed part of a systemic pattern of corrupt activity within the regulator. Investigators allege that Badea accepted €2,500 to fast-track operational authorisations. Her husband and several field inspectors have also been placed under judicial control as the probe expands.

The scandal has intensified scrutiny on ONJN president Vlad-Cristian Soare, who publicly confirmed that four officials across the agency’s control and authorisation divisions are under active investigation.

The developments follow the arrest in June of former ONJN chief Odeta Nestor, who stands accused of facilitating a €100,000 bribe linked to anti-money laundering infractions. Nestor, who subsequently served as head of the Association of Remote Gambling Operators, was placed under house arrest. The ONJN’s institutional standing was already heavily compromised after a damning 2025 audit disclosed that approximately €1bn in uncollected gambling tax revenue had slipped through state hands, prompting the resignation of its previous chief executive.

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