Romania has a troubled gambling sector that has been infiltrated by mafia-run casinos operating out of Moldova. [Image: Shutterstock.com]
Sector targeting
Partly as a lasting result of the Covid-19 pandemic, Romania has been running a serious budget deficit over the past three years, expected to reach -6.4% by the end of 2023. The government plans to target the gambling industry in an attempt to counter this, but one fundamental issue stands On the way – the mafia.
Much of the industry in Romania is controlled by mafia-run gambling operators, operating primarily out of Transnistria – an unrecognized, pro-Russian self-regulated region in Moldova. These are groups that engage in all kinds of shady activity, including drugs and human trafficking, and are even linked to controversial content creator Andrew Tate (more on that later).
Romanian Prime Minister Marcel Ciulacu said he was receiving threats
Now, Romanian Prime Minister Marcel Ciulacu said he is receiving threats from those criminal groups as the government tries to impose tougher rules. However, he said he has “no problem” with intimidation tactics and intends to finally hold the country’s casino owners accountable, bringing the mafia standoff to a head.
The Prime Minister will not back down
After telling reporters that he was not affected by the threats, the Prime Minister went ahead with the emergency decree on Thursday last week. More importantly for the mafia, this made it necessary for operators to have their tax headquarters in Romania if they were to profit from the market, even if their headquarters were in Transnistria.
Responsible gambling contributions increased from €5,000 ($5,307) to €200,000 ($212,300)
This is one of a number of provisions included in the emergency law, which does not require submission to Parliament. It also includes an annual license fee of €300,000 (US$318,540) instead of the previous various range and an increase in responsible gambling contributions from €5,000 (US$5,307) to €200,000 (US$212,300) per year. The Class II license fee, online license fee and license issuance tax will also be increased.
In addition to announcing the decree, Ciolaco also made his feelings very clear regarding the influence of the mafia. He said the groups “want to pressure some politicians to make decisions in favor of the industry, as has happened in the past.”
He went on to explain that the Covid-19 pandemic made this manipulation clearly visible, when slot machine venues were open across Romania while churches and hospitals were forced to close their doors. “The gambling mafia was at the government’s table,” Ciolaco claimed.
Tate and the mafia
The arrest of controversial media personality Andrew Tate in December last year shed some light on the depth of Romania’s mafia problem.
He moved to Romania because “corruption has become much easier”
In podcasts and videos recorded in 2022, former professional kickboxer Tate said he made much of his wealth through ownership of Roman casinos, which he ran in partnership with the local mafia. The American went on to explain that he actually moved to Romania because “corruption has become easier,” and claimed that he was making $1 million a month through casinos.
“The story is that there were three brothers, mafia guys, who owned 400 casinos all over Eastern Europe,” Tate explained in one of his videos. “I came up with this plan, and I went to them…I’ll pay to open the sites, so it won’t cost you any money to participate.” He noted that he already owns 15 casinos in Romania, claims that have not yet been confirmed.
Andrew Tate and his brother Tristan were arrested in Romania on human trafficking allegations last year. He is currently under house arrest and awaiting trial. Chat room messages were analyzed by BBC She revealed that dozens of women had been groomed into online sex work by members of Andrew Tate’s circle.
