Romania's Gambling Ban in Small Towns Faces Constitutional Review

Romania’s Supreme Court has mandated a constitutional review of the restrictions imposed on brick-and-mortar casinos in towns with populations below 15,000. This decision comes after Prime Minister Marcel Ciolacu’s executive order to ban gambling in these small towns received approval from the parliament in April. The ban was passed with 243 deputies voting in favor of the legislation.

The Supreme Court of Cassation and Justice determined that the restrictions must be reviewed by the Constitutional Court of Romania before being enforced as criminal law. The proposed penalties for operating slot-machine gaming devices without a municipal license in towns with more than 15,000 inhabitants included imprisonment for three to twelve months or a fine. Additionally, issuing false population size certificates could result in a prison sentence of six months to three years.

The Supreme Court identified several constitutional flaws in the gambling restrictions, highlighting that the proposed measures violated the bicameral principle regarding the sanctioning of federal laws. One key issue was the law’s failure to specify which localities would be subject to the restrictions and how affected gambling venues would need to relocate.

The court also pointed out the lack of clear instructions on how to enforce the regulations, particularly in rural areas with limited resources. Stakeholders raised concerns about the absence of compensation for local businesses that would be negatively impacted by the ban.

I increased their taxes 10 times. – Minister Marcel Colacu

Despite these challenges, Romania’s government remains committed to stringent gambling regulations. Prime Minister Ciolacu is a strong advocate for protecting public well-being over economic gains from gambling activities. He views the new slot legislation as a comprehensive action to curb gambling exploitation in approximately 90% of Romanian localities. He believes gambling addiction is as harmful as alcoholism and drugs.

In early April, Cristian-Gabriel Pascu was appointed as the Vice President of the National Gambling Office, despite his lack of experience in gambling or government roles. The parliament remains confident that the ban will be upheld, even though the government has not proposed any compensation for the 27 licensed betting office operators in the country, which include prominent names like SuperBet, StanleyBet, and Casa Pariurilor.

The review by the Constitutional Court is essential to address the legal and practical issues identified by the Supreme Court. This review will determine the future of the gambling ban in small towns across Romania, ensuring that any measures implemented are constitutionally sound and effectively enforceable.

Romania’s Gambling Laws

The Romanian government has introduced several financial and regulatory measures targeting the gambling industry, especially under Prime Minister Marcel Ciolacu. An emergency ordinance approved in late 2023 raised the annual fees for gambling licenses significantly. For example, the fee for an online gambling license has increased to €500,000. Other measures include stricter advertising rules, a ban on alcohol in gaming venues, and a requirement for gambling businesses to have a fiscal headquarters in Romania. These changes are part of a broader strategy to enhance regulation and ensure that gambling activities contribute more effectively to the state budget while promoting responsible gambling practices.

Enforcement of these new laws is another critical area of focus. Controversially, Ciolacu appointed Cristian-Gabriel Pascu, a beauty salon owner with no prior experience in gambling regulation, as the Vice President of the National Gambling Office (ONJN). Despite criticisms, this appointment underscores the government’s commitment to stricter oversight and enforcement of gambling regulations. The ONJN will play a crucial role in implementing these new laws and ensuring compliance across the industry. Additionally, increased taxes and tighter controls on gambling operations reflect the government’s resolve to protect its citizens from the negative impacts of gambling.

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