Betting Frenzy’s License canceled in Romania

In a recent development, the Bucharest-based operator, Betting Frenzy, has had its license revoked by Romania’s National Gaming Office (ONJN), following an investigation into the company’s tax payments. The probe revealed that Betting Frenzy had failed to fulfill both its declaration and payment obligations concerning taxes.

Irregularities in Tax Payments Lead to License Revocation

As per Romanian legislation established in 2022, operators engaged in games of chance are obliged to make certain contributions. These include a 1% payment to the Romanian Olympic and Sports Committee and a 0.2% fee to the National Paralympic Committee. However, Betting Frenzy was found to be non-compliant with these requirements.

The ONJN discovered that Betting Frenzy had accrued a considerable sum of LEI 3.2m ($706,000) in specific gambling taxes. Additionally, it was determined that Betting Frenzy failed to provide any verifiable documentation indicating the submission of the necessary paperwork to the National Games Office. While the company had submitted a total of 17 documents to the National Betting Office, none were accompanied by supporting evidence to demonstrate an intent to pay taxes.

Immediate Effect and Consequences of License Revocation

Following the investigation, the ONJN has effectively revoked Betting Frenzy’s license. This decision restricts the company from offering slot games in Romania. As per the report, this revocation will remain in effect until 2032.

The consequences of this action are significant. Betting Frenzy has been penalized a total of LEI 100,000 and is required to repay the full amount of owed taxes. The decision, signed by Mihail-Silviu Pocora, President of the ONJN, has taken immediate effect.

Betting Frenzy has a 30-day window to appeal the decision if they choose to do so.

This incident occurs amidst increased activity in the Romanian gambling market. Notably, Pragmatic Play has extended its partnership with Superbet to expand its live casino games offering. This serves as a reminder of the stringent regulatory environment within which businesses operate, underlining the importance of adherence to tax laws and other legal obligations.