Poll results: Back tax requirement will harm Romanian market
Majority of readers believe stringent requirement will put off operators from entering the soon-to-be regulated market
Last week’s decision by the Romanian government to attach a back tax amendment to the country’s Gambling Act will reduce the size of the market, according to the majority of respondents to this week’s eGaming Review poll.
Reaction to the move suggested that the requirement for operators to pay back 20% of revenues generated in the country since online gambling was banned 2009 would discourage firms from seeking a licence.
And an overwhelming majority of eGR readers agreed that the amendment will reduce the size of market, with more than three quarters (78%) saying that the stringent requirement is likely to have an adverse effect.
The response matches comments by senior executives from several operators, who have told EGR they would now reconsider the commercial value of obtaining a licence in Romania.
Even with the 90-day grace period offered by authorities for the payment of the taxes, just 22% of readers believe operators won’t at least reconsider their plans for Romania, in spite of a similar back tax scheme having seemingly little effect on the number of operators who sought a Spanish licence in 2012.
Despite the reservations, it appears operators who want a slice of Romania’s market will have to pay up, after the ordinance was submitted to the country’s Constitutional Court this week for review, and will enter into effect once it is signed off by the President.