Odeta Nestor, President of AOJND: “Adopting legislative changes without honest consultation with the whole industry affects the market”
Odeta Nestor, President Remote Gambling Organizers’ Association (AOJND) returns to the pages of our magazine with a serious message, a wake-up call to all those involved in the gambling industry. The lack of willingness for dialogue and cooperation on the part of the authorities generates a lack of trust among operators. Also, increasing taxes at short intervals and without an impact study will affect the predictability of the Romanian gambling business, while the imposition of a legislative and regulatory framework without prior consultation with the members of the industry will lead to negative effects of these measures that will be felt by the players and the state budget. The risk of witnessing a migration of players to the black market is a major one. All this and many other issues concerning the gambling industry in Romania are discussed in the following material.
Odeta Nestor
Given your involvement in the gambling industry, with a focus on remote gambling, please tell us how this branch of the economy is doing with the legislative changes last year?
As we have consistently pointed out over the past year, the adoption of legislative changes without honest consultation with the whole industry negatively impacts the market. Operators have had to rethink their business strategies and I believe that more than ever the lack of willingness for dialogue and cooperation on the part of the authorities has led to a lack of confidence among operators, which have become more cautious, more reserved about their development plans.
How have online gambling operators received the legislative changes? What are the dangers they face? Is there a risk that in the coming period there will be operators closing their operations in our country?
As far as the members of AOJND, the association I lead, are concerned, we are talking about large operators, in many cases part of international companies, with solid businesses and long-term investment plans. Their expectations are to have a transparent, predictable and fair regulatory framework. This means real consultation but also an understanding by decision-makers of their legitimate business development needs. The adoption of decisions such as, for example, the imposition of safeguards does not fall into this area and has no substantiated support in relation to the work carried out so far in the field of remote gambling.
Class 2 licensing fees have tripled recently. Do you think it still pays to run a business at this level of taxation?
We have constantly stressed over the years that Romania is off to a good start in terms of gambling regulation, being one of the countries with the best gambling regulation. This has generated interest in licensing from big companies. In recent years, the authorities’ decisions or, in some cases, their lack of decision have had a negative impact, but the fundamental framework remains good.
In the specific case to which you refer, the operators with a class 1 licence have made efforts and have borne this increase for related services. However, for some of those who had a class 2 licence and this was their only activity, the increase in fees could not be covered by the revenue they made, so they gave up this business in Romania.
Is the number of players playing on online gambling platforms on the rise? What do you think has caused this?
First of all, if we are talking about licensed operator platforms, I have to mention that they represent a safer environment for players. The big operators have made significant technical investments in their platforms so that they guarantee exclusion of minors but also of people who present a risk profile (e.g. automatic removal from the platform after a certain time or the fact that the player can access and check the time and amounts played). In addition, the online domain makes compliance with the self-exclusion register much safer. They also offer players more guarantees in terms of amounts paid and amounts to be cashed out, as well as more varied experiences and higher satisfaction.
I would also like to point out that from the authorities’ perspective, the online domain also has major advantages in terms of ensuring transparency and traceability of amounts paid and/or cashed.
In view of the new taxes and guarantees imposed on gaming operators (traditional and remote), do you think there will be companies that will close down? What do you think will be the impact on the state budget caused by these new changes?
There are companies that have chosen to close down. However, the negative effects of these measures will also be felt by the players and the state budget. The risk is that players will migrate to the black market, where there is no security and no quality offers. There is also a negative impact here on the state budget, which over time will collect less money.
In which European country do you think we find the best gambling legislation? Why is it so good compared to Romanian legislation?
Here I would like to refer to two aspects.
On the one hand, I think we are talking about an unfavourable situation at the moment but, fundamentally, the Romanian gambling legislation is very good, very balanced. I have said it on every occasion – Romania has long been a model of successful gambling legislation. So the foundation is solid and good.
On the other hand, if we are talking about models, I would say that Malta was and is an example to follow because the authorities work closely with gambling operators in the interest of properly regulating a niche market such as gambling.
We have a request for you to translate yourself into the role of the legislator (the State), taking into account the budgetary needs, what would be the legislative/taxation changes that you would make in order for the gambling industry in our country to function at the optimal level?
I wouldn’t want to speculate by putting myself in a role that is not mine. But I would like to remind you that from 2013 to 2017 I headed ONJN and, in this capacity, I had a direct contribution to the drafting and adoption of legislation and put Romania at the forefront of countries with very good regulation, as has been proven in the years that followed. I brought all parties to the negotiating table, held broad consultations and considered and analyzed all the views expressed, seeking to create a fair environment that would be beneficial in the long term for all parties. Looking at the dynamics of the subsequent changes, I am convinced that if we had not regulated online gambling then, it would not be regulated today.
Odeta Nestor, President Remote Gambling Organizers’ Association (AOJND)
The state has always justified changes in taxes and tax increases by the desire to protect the player. Do you see any change in the direction of safe gambling/responsible gambling from the State? Are you aware of any projects being carried out by the State with the increasingly huge budgets it has available on this issue? Have you been contacted to develop any joint (public-private) project in this regard?
I have noticed that there is more attention in the public space given to the issue of responsible gambling, but I am not aware of any project run by the State on this area and AOJND has not been contacted or asked for any project.
But if we are talking about responsible gambling, I would like to reiterate the undeniable advan-tages of online gambling. Licensed online gambling platforms, thanks to significant technical investments, are increasingly incorporating high-performance filters to encourage responsible gambling.
How do you see the future of your industry? (If you can, please send us an optimistic message at the end – ….)
On the one hand, if we refer to the legislative framework, what gives me hope is the fact that, beyond certain shortcomings at the moment, the legislation has a good, correct basis.
I am also optimistic about the development of online gambling. I expect this field to continue to develop at an accelerated pace and I believe that in the coming years artificial intelligence will be used more widely with a positive impact both in terms of protection measures for players, prevention and the gaming experience as well as transparency and traceability of payments and receipts.
EGBA
Actions to promote responsible gambling
In 2023, the European Gambling and Betting Association (EGBA) – the association representing the interests of gambling and betting operators in EU countries in Brussels – has stepped up its actions to make gambling safer. The EGBA successfully proposed to the European Committee for Standardisation the implementation of a European standard on risk indicators in online gambling. AOJND, which is a member of EGBA, was one of the first supporters of this initiative, voting in favour of the implementation of this standard, which aims to ensure a safer environment for players.
