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Romanian gambling industry warns local bans will drive market underground

Romania's gambling sector is pushing back against proposed local restrictions, cautioning that banning licensed operators from municipalities will not reduce gambling activity, but instead push it toward unregulated, criminal-controlled channels.

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Key Points
Romanian industry group warns local gambling bans could drive activity to illegal markets
FEDBET claims 71% of European gambling transactions already occur on the black market
Federation calls for stricter regulation and enforcement rather than prohibition

Federation of Gambling Organisers of Romania (FEDBET) has warned that proposed local bans on gambling venues could push a significant portion of the market into the black market, arguing that prohibition would reduce regulatory oversight rather than eliminate gambling activity.

The industry body issued the warning amid ongoing legislative discussions in Romania about tightening gambling regulations and granting greater authority to local governments over licensing decisions. 

According to FEDBET, prohibiting legal gambling operations at a local level would likely shift activity toward unlicensed operators that operate outside regulatory frameworks.

Citing data referenced by Europol and Bloomberg, the federation claims that illegal gambling already accounts for approximately 71% of total gambling transactions across Europe. 

FEDBET argues that stricter restrictions on regulated operators risk accelerating this trend, as players may turn to unlicensed websites or underground venues where consumer protections and oversight are absent.

The organisation acknowledged that concerns around problem gambling and youth participation remain legitimate policy issues. However, it stated that many of the most serious cases involve illegal operators that do not implement age verification, responsible gambling tools or regulatory compliance measures.

FEDBET also pointed to historical examples in Europe and the US where bans on gambling activities led to increased involvement from organised crime groups, which profited from unregulated markets. According to the federation, such outcomes demonstrate the risks associated with prohibition-based policies.

Instead, the industry body has called for a regulatory approach centred on strict oversight, enforcement against illegal operators and public education around responsible gambling. 

Licensed venues, it argued, are subject to inspections, taxation and player protection requirements that do not exist in the black market.

The comments come amid a period of significant regulatory upheaval in Romania. In recent weeks, the Government has passed an ordinance transferring licensing approval powers to local authorities. Additionally, the Senate has advanced proposals to raise the minimum gambling age from 18 to 21, and stricter advertising restrictions have also been put forward – reflecting a broader political push toward tighter oversight of the sector.

Good to know

FEDBET represents much of Romania’s regulated gambling sector, including members from associations such as Rombet, Romanian Bookmakers and Romslot

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