Romania has a troubled gambling sector that has been infiltrated by mafia-run casinos operating from Moldova. [Image: Shutterstock.com]

Targeting the sector

Partially as a lasting result of the COVID-19 pandemic, Romania has recorded a serious budget deficit over the past three years, estimated to reach -6.4% by the end of 2023. The government is planning to target its gambling industry in a bid to counter this, but it has one substantial issue standing in the way – the mafia.

Mafia-run gambling operators control much of the industry in Romania, operating primarily out of Transnistria – an unrecognized self-regulated pro-Russian region in Moldova. These are groups that are involved in all manner of shady activities, including drugs and human trafficking, and are even linked to controversial content creator Andrew Tate (more on that later).

Romanian Prime Minister Marcel Ciolacu said he is receiving threats

Now, Romanian Prime Minister Marcel Ciolacu said he is receiving threats from those criminal groups as the government attempts to introduce stricter regulation. Nevertheless, he said that he has “no problem” with the intimidation tactics and intends to finally hold casino owners to account in the country, bringing the mafia standoff to a head.

PM won’t back down

After informing reporters he was not phased by the threats, the PM went on to issue an emergency ordinance on Thursday last week. Most importantly in regard to the mafia, this made it mandatory for operators to have their tax headquarters in Romania if they are profiting from the market, even if they are physically headquartered in Transnistria.

an increase in responsible gambling contributions from €5,000 ($5,307) to €200,000 ($212,300

This is one of a number of inclusions within the emergency ordinance, that did not require submission to Parliament. It also includes an annual license fee of €300,000 ($318,540) instead of the former varied scale and an increase in responsible gambling contributions from €5,000 ($5,307) to €200,000 ($212,300) per year. Class II license fees, online license fees, and license issuance tax will also increase.

In addition to announcing the ordinance, Ciolacu also made his feelings very apparent regarding the mafia’s influence. He said the groups “want to pressure certain 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 clear to see, when slot machine venues were open all across Romania while churches and hospitals had to shut their doors. “The gambling mafia was at the government’s table,” Ciolacu claimed.

Tate and the mafia

The arrest of controversial media personality Andrew Tate in December last year shed some light on the depth of the mafia problem in Romania.

moved to Romania because “corruption is far more accessible”

In podcasts and videos recorded in 2022, former professional kickboxer Tate said he made much of his wealth through the ownership of Romanian casinos, which he operated in partnership with the local mafia. The American went on to explain that he actually moved to Romania because “corruption is far more accessible,” and claimed he made $1m per month through the casinos.

“The story is there were three brothers, mafia guys, who owned 400 casinos throughout Eastern Europe,” Tate explained in one of his videos. “I came up with this plan, I went to them… I’ll pay to open locations, so it costs you no money to be involved.” He went on to suggest that he actually owns 15 casinos in Romania, claims that are yet to be confirmed.

Andrew Tate and his brother Tristan were arrested in Romania due to allegations of human trafficking last year. He is currently under house arrest and awaiting his trial. Chatroom messages analyzed by the BBC revealed that dozens of women were groomed into online sex work by members of Andrew Tate’s circle.