The authorities are preparing for very harsh financial measures. The tax rate will go up to 40 percent! It will be a real blow to the gambling industry, but also to Romanian sports.
The link between the two fields – bookmakers and sports – is too close and the application of such a limit causes harm to all involved. Customers also suffer.
Bookmakers are active in Romanian sports, and football is the most visible. for example Superbet, the strongest “player” on the fieldpays two million euros annually for the first league, Romania’s first football division, to be called Superliga. The amount is distributed to the clubs, a huge help, in addition to the money that teams get from TV rights.
The huge taxes proposed by the government could lead to the collapse of the Romanian sports and gambling industry! In the former case, “state revenue was almost non-existent”
Of the 14 clubs in the Superliga, 12 are sponsored by companies in the gambling industry. In the past, League 1 has been associated with companies in this field, such as Casa Pariurilor or Betano.
The gambling industry is firmly entrenched in Romanian football. And here is the relationship between companies in the field and football clubs at the first level:
CFR Cluj – Pokerstars, Betfair, FCSB – Betano, Universitatea Craiova – Betano, Farul Constanţa – Superbet, Rapid Bucureşti – Superbet, FC Argeş – Mozzart Bet, U Cluj- Superbet, FC U Craiova – Casa Pariurilor – UTA Aubetc Unibet, Petrolul Ploieşti – Mozzart Bet, Hermannstadt – Superbet. Superbet, which also gives League 1 its name, Superliga, dominates in this chapter.
- CS Mioveni, Chindia Targoviste, FC Voluntari, Sepsi Sf. Gheorghe Partner in the Gambling Industry
League 2 is sponsored by this company, Casa Pariurilor. The contract will be 200,000 euros per year. In the second league, there are teams that have partnerships, such as Dinamo with Unibet, FC Buzău – Superbet, CSA Steaua – Get’s Bet or Poli Iaşi – Mozzart Bet.
FRF receives 1.4 million euros annually from Fortuna
The Romanian Football Federation signed in 2017 with Fortuna, which provides 1.4 million euros annually. The company supports the men’s and women’s national soccer teams. frf.ro explains. “The contract signed with the Romanian Football Federation provides for the support of the women’s football team until the end of 2022, with the option of extension.”
The quoted source further states that “Fortuna has been a partner of FRF since March 2017, being also a sponsor of the men’s national team, the national under-21 team, the national futsal team, and the Romanian Cup.”
Massive participation in other sports
Superbet organizes one of the strongest chess tournaments in the world, and At the Superbet Chess Classic, in Bucharest, the famous Garry Kasparov was also present.
There is also a presence in handball, Superbet is the partner of the Romanian champions in women and men, Rapid, respectively, Dinamo, CSM Bucharest (women and men) sponsored by Game World.
Basketball, boxing, or parades are also sponsored by companies in the gambling industry. Similarly, in MMA or K1 galas, Superbet or Unibet participates. After that, the National Rally Championship is also named after sponsor Betano, and Mihai Leu has a contract with Superbet, while the other motoring champion, Simone Tempestini, has Betano on the equipment (single photo contract).
Sports world ambassadors
The association between the sport and the bookmakers appears as a picture as well, and many great athletes are ambassadors of different brands: Eli Domitrescu, Florin Răducioiu, Gabe Balint, Marius Lukotosz, Bogdan Stilia, Kotlin Morosano, Benny Adegboysek, Stanrian Marika, Annamaria Mihai Liu.
600,000,000 euros for the state
According to a joint statement by Rumslot, Romanian bookmakers, ROMPT and the Association of Gambling Regulators and Producers of Romania (AOPJNR), the gambling industry brings an annual revenue of 600 million euros to the state budget.
“In Romania, gambling is a legal leisure activity, it is strictly regulated and, in this sense, it is often set as a positive example in Europe. At the same time, the gambling sector, which brings together sports betting operators, slot machines, Romanian lotteries or casinos, provides 45,000 jobs and is A major payer of salaries, taxes and fees, with direct and indirect taxes of 600 million euros paid annually to the state budget and a collection rate of over 99%,” the statement said.
When the new rules come into effect
From January 1, 2023, the new taxes will apply. Now taxes are charged according to the following values: 1%, 16%, 25%.
“Currently, the tax rates are 1%, 16% and 25%. For award of 500,000 lei, 1% will be paid for the portion up to 66,750 lei inclusive, 16% for the award bracket between 66,750 lei and 445,000 lei, plus 25% for the award portion which exceeds 445,000 lei. The initial option considered in the negotiations was to acquire a consolidated share of 20% ‘profits’.
There is a dialogue between industry and the state. We are trying to provide the Romanian state with the best practices of the European Union, to present its relevant tax framework and we hope that these things will solve the problem – Vlastimir Vukadinovic, Marketing Director of Superbet, during the press conference where Superliga was officially launched
What does the bettor say?
Cătălin Mihalache, an avid bettor, explained what the new taxes mean to the client: “The moment I place a 1.50 bet, on a stake of 100 lei, I win 150 lei. 40% tax means 60 lei. Basically, I will win less than I bet. I will. Everyone thinks twice and such a measure can only encourage the black market because if they want to bet, they will resort to the solutions that exist at the moment.”
This change will lead to maximum market turmoil. We can see Italy doing it, and then as a result of this change, the market collapsed and it went down to 50. The care that we have at the moment for all the football teams, for all the clubs, practically all the partners will be affected. Basically, we will return to the situation before 2015, when both players and bookmakers bypassed Romania due to excessive taxes, and the state revenue was almost non-existent – Odeta Nestor, Gambling Association