In 2016, there was a political campaign to
drastically increase the regulation on gambling
years ago, preferring independence from Moldova and unification with Russia. Russia has pumped money into the region providing free gas since 2005 and topping up pensions and salaries to keep the economy afloat.
THE GAMBLING MARKET
Te gambling sector in Moldova developed back in 1918 when the first clubs began to open in the main cities. Under Soviet control, however, gambling was prohibited, and this lasted until independence in 1991 when it began to re- emerge.
By the late 90s the government took the initiative to develop the gambling industry and introduced the Law on Gambling and Licensing of Gambling Businesses (Law No. 285/1999) which outlined the main legal framework for operating gambling establishments and distinguished between games of chance, bets, and skill games.
Any operator, incorporated in a limited liability company or joint stock company, with a statutory amount of capital, could apply for a licence. Only the National Lottery was under a state monopoly.
It provided for an open market and the sector mushroomed with an estimated 100 plus
activities. Politician Vlad Plahotniuc ‘declared war’ on illegal gambling in casinos and targeted
underage gambling issues. In November 2016 a police campaign shut down the
four casinos and 160 slots halls in one night.
gambling halls and over 2,000 slots in Chisinau alone.
Talks about introducing a monopoly began as early as 2010. At one time there were up to nine companies operating lotteries and the idea was to grant the Loteria Moldovei (National Lottery of Moldova) the monopoly on lotteries, VLTs, sports betting and online gaming.
In 2016, there was a political campaign to drastically increase the regulation on gambling activities. Politician Vlad Plahotniuc ‘declared war’ on illegal gambling in casinos and targeted underage gambling issues. In November 2016 a police campaign shut down the four casinos and 160 other slots halls in one night, mostly
operated by investors from Romania, Hungary, Russia and Ukraine.
Te aim was to clean up the nation of illegal gambling. It also led to the arrest of several Licensing Chamber employees with a big investigation into licensing irregularities and fraud. Te Licensing Chamber suspended the licences of 65 gambling operators due to tax evasion or financial violations.
During this period there were four casino licences, 72 slot licence holders, 13 sports betting companies and the lottery. Moldovans spent around LEU350m (€16.6m) on gambling that year according to the Licensing Chamber, whilst in 2016 gambling generated around LEU52m (€2.5m) for the state in taxes.
However, the government later changed their minds on a complete ban on gambling and a month or so later a draft legislation was rushed through calling for tighter control of the sector and in December 2016 Law No: 291 was introduced which basically divided the gambling market into two segments – high risk (casinos and slot machines) and low risk (lotteries and sports betting). Te law stated that except for the operation of casinos, all other gambling sector constituted as a state monopoly. Te casinos re-opened three to four months after their suspension.
WIRE / PULSE / INSIGHT / REPORTS P67
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