In Romania, online gambling is going to become illegal

by Nicolae Sfetcu

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A draft law for gambling of the Romanian Minister of Finance will be submitted soon to the Parliament. Art. 21 of this law stipulates that it is illegal and is punished with imprisonment between 1 and 4 years or penalty the organization, operation or easement of the virtual gambling developed using network communications such as the Internet.

Also, it will become illegal the advertising, publicity or any kind of promotional activity for online gambling and online casinos (Art. 24), the sanction being in this situation imprisonment between 3 months to 2 years or penalty. The responsibility will belong both to the organizer and advertiser.

In accordance with this law, the National Company Loteria Romana SA is enabled as the only organizer in Romania to organize and operate gambling lotteries and mutual betting.

In the last week of December, 2000, the National Company Loteria Romana SA had signed a $100 million deal with Greek lottery systems firm and operator Intralot, listed on the Athens Stock Exchange since 1999, to develop a nationwide network of video-lottery games. The $100 million investment will help us build a modern network of video games across Romania over the next 10 years,” said General Manager Nicolae Cristea. Intralot, a subsidiary of Intracom, added that the agreement would cover the installation of an informatics system and terminals, as well as the organization, operation and promotion of new games. The total number of video terminals was expected to reach 15,000. The U.S.-based company International Game Technology (IGT) would supply the equipment. Intralot said the project would be the first national network of video-lottery games in Eastern Europe. In November 2002, following a 13-year agreement with National Company Loteria Romana SA, Intralot has undertaken the supply and all related services for the operation of the video lottery system.

Actually, the Romanian online gambling market is very poor, mainly because of the lack of the financial and technical infrastructure for online payment. But the Romanian IT specialists and businessmen discovered about 4 years ago the benefits of the online gambling advertising, especially using affiliate programs. So, this law will be less important for the Romanian gamblers that use the classical casinos and agencies, but it will stop the development of the local online gambling industry. As discussed with some of the Romanian businessmen implied in this market, they are prepared to start new companies in foreign countries when the law will take into force.

To be mentioned that a similar law was adopted by the Romanian Parliament not long time ago, for the pornography. But, in opposition with the gambling law, the pornography law accepts advertising and promotion of the related websites, including on national TV channels, and accepts the operation of the related websites charging the use of this websites with a tax.