Odeta Nestor, President of AOJND: “If the state continues to stifle licensed operators through legislation and taxation instead of combating illegal operators, then the industry’s future looks bleak”
Ms. Odeta Nestor, president of Association of Remote Gambling Organizers (AOJND) returns to the pages of Casino Inside magazine with an exclusive article in which we learned her views on the current state of the gambling industry, the impact of the black market on the gambling industry and the fact that it must be combated together with the Romanian State by all means, we also addressed potential political discussions regarding a “ban” on online gambling and the disastrous impact it would have on the economy, the risks faced by players who access unlicensed gambling sites and many other interesting topics.
Odeta Nestor
Over the past year, the gambling industry in our country has faced a multitude of problems caused both by the “concentrated attack” from the political class and the mainstream media, as well as by overregulation. Given your experience in the gambling sector, could you please provide us with a brief overview of the industry and how it has been over the past year?
The picture is complex and contradictory. On the one hand, it has become clear that online gaming now generates the majority of the industry’s total revenue. Remote gambling operators licensed in Romania generated over 2 billion RON in revenue for the state budget in 2024, representing more than half of the total amounts collected by ONJN, thus confirming this sector’s role as a significant contributor to the state budget.
On the other hand, the hostile attitude coming from the political class and the media, to which you refer, is real and places undeserved pressure on the online gambling industry. The causes are many, but I would point first and foremost to populism. It is easy to condemn an entire industry as a whole, without explaining its nuances, how it operates, and its limitations. But it is not fair, and in the long run, it is not beneficial either.
As for the legislative pressures you mention, they have indeed been significant over the past year and stem primarily from the same lack of understanding of the gambling industry that I mentioned earlier. There is a constant reliance on simplistic measures – block bans and constant increases in taxation. Our message to the authorities is that gambling can remain a significant source of revenue only if the conditions for the sector’s proper development are met – balanced taxation, fair regulation, combating the illicit market and promoting responsible gaming as the sole method for developing a sustainable industry in the long term.
Once the authorities “resolve” the issue of land-based gambling, do you think they will turn their attention to online gambling? What are remote gambling operators doing or what should they be doing, to protect players and thus prevent more aggressive measures from state authorities, measures that could irreversibly affect the smooth operation of their business?
Licensed online operators have long been acting proactively and consistently to promote responsible gaming. In fact, for a long time, they were the only ones doing so. However, it benefits no one to discuss what the industry can do to defend itself against the state, because the industry and the authorities are not, and should not be, on opposing sides. On the contrary, the time has now come for the authorities and the industry to jointly acknowledge the real danger posed by the black market and to act together against this scourge. The black market is, in fact, the true threat that encompasses all others, from irresponsible gambling to tax evasion.
How great would the losses to the Romanian economy be if a “ban” on online gambling were to materialize in the near future?
Simply put, if they were to completely ban online gambling, the authorities would hand a multi-billion-euro market to organized crime networks on a silver platter, while simultaneously destroying a key financial partner for sports and the state budget.
However, although the measures adopted in recent years have clearly been hostile to the legal industry, I do not believe the authorities will reach a decision to completely ban online gambling. I believe that, beyond the political rhetoric, the authorities understand that eliminating a fully digitized and monitored sector, with nearly 100% traceability, would undo years of progress in responsible gaming and leave Romanian users without any protection against the onslaught of illicit platforms, which operate without any ethical or fiscal constraints.
Can Romanian authorities still be trusted to issue gambling licenses after what happened with land-based gambling?
For any investor, stability and predictability are fundamental. The online gambling sector represents the future, and AOJND will continue to advocate for its role to be correctly understood as a source of entertainment, so that the partnership between the state and the operator is a real and solid one, based on transparent rules that do not change overnight.
Romanian authorities downplay the danger of the black market and do not consider that, with the “ban” on the regulated market, the dangers posed by a rapidly growing black market will also emerge. Is this a sign of ignorance or indifference, with the focus solely on achieving short-term political goals?
The gambling sector, although part of the entertainment industry, is highly complex and requires thorough multidisciplinary expertise. This is why we are discussing about an industry where the number of experts is limited, so that some wrong decisions are caused not by ill will but by a lack of knowledge. Here lies an opportunity for collaboration between the industry and the state, and we have often stated that we, as an industry, are willing to offer our expertise to the authorities so that the state’s fiscal objectives can be achieved through intelligent regulation that protects players and maintains budget revenues, while avoiding the pitfalls of an uncontrollable underground market.
Both at global/ European level and nationally, the gambling industry faces unfair competition from the black market, can you tell us what losses licensed gambling operators suffer as a result? Also, can you give us an estimate of the state’s losses due to illegal online casinos?
The impact of the black market is real and significant, even though, by its very nature, it is extremely difficult to quantify. Unfortunately, against the backdrop of increasingly restrictive legislation, licensed online operators are constantly losing market share to illegal platforms, which attract players very easily through aggressive bonuses and a lack of restrictions, because they do not incur compliance costs, do not pay any taxes and make no investment in player protection. It is a profoundly unbalanced competition.
At the same time, it is a situation in which the state also stands to lose, first, because it is not collecting taxes at their true potential and second, because the vulnerability of players on illegal platforms creates social costs that the state will ultimately have to cover.
How much of our country’s overall gambling market is accounted for by the black market? Is it possible to effectively combat unlicensed operators? How should this fight be waged and what measures should the authorities take to stop or minimize the presence of illegal operators as much as possible?
As I have already mentioned, the illegal market is gaining more and more ground in Romania and one of the main reasons is the overly restrictive regulation of licensed operators. Therefore, the authorities should focus first and foremost on creating a more attractive licensing framework, with fair fees and less bureaucracy, so that serious operators choose the licensed market rather than circumventing it.
Although the black market cannot be completely eradicated, authorities can take action to significantly limit it through measures such as blocking illegal domains in collaboration with Internet service providers and blocking transactions to illegal platforms in collaboration with banks and payment processors. Last but not least, advertising regulation is very important because, while licensed operators are subject to significant legal restrictions, illegal platforms can advertise in Romania without any limitations.
What risks do players face when accessing unlicensed gambling sites?
Accessing unlicensed gambling sites deprives players of any form of legal protection. Authorized platforms are supervised by the National Gambling Office, which means there are clear rules and intervention mechanisms in place if problems arise. In contrast, on an unlicensed site, players receive no support or guarantees. Furthermore, there is a high risk of fraud. Illegal platforms can manipulate game results or refuse to pay out winnings and cannot be held legally accountable. Another problematic issue is data security, which is not guaranteed on illegal platforms, and players may face identity theft or unauthorized transactions that they have no way of resolving. In contrast, licensed operators invest significant sums in securing their networks against potential fraud, as this is one of the primary concerns of legal operators.
Another important issue is the lack of responsible gaming measures. Thus, while licensed operators are required to enforce deposit limits or self-exclusion options, unlicensed sites offer no such protections, which can more easily lead to uncontrolled losses or even addiction.
How do you see the future of gambling in our country?
I believe we have reached a turning point where the main threat is the illicit market. The future of the industry depends on how the authorities choose to combat this illegal market.
Romania was, at one point, a model for regulation, thanks to balanced legislation that protected players, generated significant revenue for the state budget, and, at the same time, allowed the industry to breathe and grow. We were a model of best practices and I say this with full knowledge of the facts because, as the first president of ONJN, I had the opportunity to lay the groundwork for Romanian legislation in this field. And I can assure you that the foundation is solid and sound. Unfortunately, in recent years, the situation has deteriorated mainly due to restrictive legislative measures: burdensome taxes have been adopted, licensing conditions have become increasingly cumbersome and unbalanced advertising restrictions have pushed players directly toward illegal platforms.
We are now at a point where the authorities’ decision can make all the difference. The real enemy is the black market, and if the state continues to stifle licensed operators through legislation and taxation instead of combating illegal operators, then the industry’s future looks bleak.
But I remain optimistic because I know that the licensed online gaming industry is ready to sit down with the authorities to jointly build a predictable, fair, and effective legislative framework. Together, we can isolate and limit the black market, protect Romanian players, and transform Romania, once again, into a model of best practices at the European level.
Asociatia Organizatorilor de Jocuri de Noroc la Distanta – AOJND
