Romania: suppliers to ensure and prove their games aren’t used on black market

Garance Limouzy July 30, 2024

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Romania: suppliers to ensure and prove their games aren’t used on black market

Romania aims to ensure that suppliers operating within the country cease selling their content to illegal operators. To achieve this, the regulator has mandated that suppliers disclose all information regarding any deals they may make with both local and international companies. A new regulation has been drafted to enforce this requirement.

Illegal operators targeting Romania often buy content from Romanian suppliers, offering their customers the same type of games as licensed operators. This practice attracts more bettors and makes it difficult for them to distinguish between licensed operators and black market platforms. To prevent this, the government has decided to mandate that suppliers disclose the details of all their transactions, thereby preventing them from selling games to black market operators.

According to the drafted law, “B2B licensees operating in Romania through a local company or a company with a permanent establishment in Romania” are required to notify the regulator whenever they sign a contract with any operator worldwide, unless the operator is licensed by Romania.

Which suppliers are concerned?

The draft law is still unclear on which suppliers will be affected by the new legislation. However, Cosmina Simion, managing partner at WH Simion & Partners, told the press (Vixio) that she believes any supplier licensed in Romania could be subject to the new rule, regardless of where their headquarters are located.

Extending suppliers’ responsibility

Romania was one of the first European countries to regulate the suppliers’ market by establishing a licensing system. Across Europe, suppliers are facing increasing scrutiny, with more countries choosing to implement licensing systems similar to Romania’s.

Romanian suppliers selling products to offshore operators will have to ensure that these companies are aware of and comply with Romanian law. Contracts will have to include a clause prohibiting operators from using the suppliers’ games in Romania without a license.

In Romania, the Companies Act and the Civil Code define a “duty of care” that requires directors to monitor, research, investigate, and “ask questions” to follow any information trail indicating potential issues. This includes using the information gathered and engaging in a proper decision-making process to adopt reasonable business decisions. Therefore, requiring suppliers to actively ensure their products are not used on the black market aligns with Romania’s expectations of corporate responsibility.

The newly drafted legislation is open to comment until August 2.