Players gonna pay with Romanian deposit tax
Romanian players are finding that their deposits don’t go quite as far as they did before the government imposed a two percent tax on deposits. It’s an imposition on players that was originally a gift to operators, but is anyone in Romania even paying attention to the new tax – including the Romanian government?
At issue is a new tax on deposits to online gambling operators that went into effect at the end of February. It’s a burden that was placed on the players in an effort to relieve the burden of additional taxes on operators. After all, when the new tax was first brought up in December of 2018, it was presented as a two percent tax on the turnover of operators serving the Romanian market. Over the course of a couple months, that measure morphed into a two percent tax on player deposits (presumably there was some heavy lobbying done by one operator or another on the matter.)
Deposits, however, weren’t the only aspect of the deposit (and thus the coveted conversion) that players and operators have to pay additional taxes on. The Romanian government also imposed a three percent tax on bonus offers.
While none of these taxes went over well with players or operators, it’s the operators’ bottom line that will suffer the most. According to a report on CalvinAyre.com, it’s been predicted that the new taxes will reduce operator revenue by anywhere from 4-6 percent – if the government can actually collect the tax.
As it turns out, at least 27 operators haven’t paid the tax and Romanian officials have been unable to actually contact them regarding the matter. As it turns out, the information on their licensing applications is out of date.
Maybe the Romanians can use the new tax money to track down the people who are currently licensed to do business in their country. (Just a thought.)