Romania Gambling Crisis: Evoke Warns of Taxes and Black Market Pressure

Romania was long considered one of the most promising growth markets for online gambling in Europe. However, recent reports from industry giant Evoke, which owns well-known brands such as 888, William Hill, and Mr Green, paint a somber picture. The company is sounding the alarm as a combination of economic weakness, massive tax increases, and aggressive competition from illegal providers puts the regulated business under severe pressure. For Evoke, this is particularly bitter as Romania was only recently declared the group's fifth core market.

Instability in the Romanian market is reaching a tipping point. While licensed operators struggle with ever-increasing levies, black market providers benefit from the fact that they pay no taxes and do not adhere to strict player protection measures. This leads to unfair competition that undermines the profitability of legal companies. Evoke is now responding with a cautious strategy regarding marketing and promotions to safeguard remaining margins. It is a clear warning signal to regulatory authorities across Europe that the limit of taxation may have been overstretched.

Numbers and facts

The financial impact is concrete and measurable. Sean Wilkins, Chief Financial Officer of Evoke, told investors that the company's tax burden rose by an additional £6 million solely due to the increase in gaming tax from 21% to 30%. This occurs in a market environment that Wilkins describes as weakened. Evoke had previously invested €10 million to acquire local operator Winner.ro and merge it with the 888 brand. The goal was to take a leading position in the country. The combined entity, NGS, in which Evoke holds a 51% stake, was originally intended to benefit from projected market growth.

Other industry giants are also feeling the pressure. FDJ United stated that it paid €52 million more in taxes in the first half of 2026 compared to the previous year due to Europe-wide tax increases, including in Romania. Dan Ghita, Chair of Rombet, pointed out that the European Union estimates member states lose over €22 billion in tax revenue annually to illegal gambling. These figures illustrate the scale of the problem, which extends far beyond Romania's borders.

Background

The conflict in Romania has been simmering for some time. The national gambling authority ONJN has faced criticism over corruption allegations involving staff members, which undermines operator confidence in fair regulation. Meanwhile, experts like Stasya Yautodzyeva from 4H Agency are calling for a return to evidence-based policymaking to maintain the location's attractiveness. The industry is demanding coordinated cooperation across the Balkans and Europe to effectively combat the black market.

"Romania continues to be affected by the combination of a weaker economy, higher taxes, and the growth of the unregulated market. We have responded by managing marketing and promotional investment carefully to protect returns." - Sean Wilkins, Chief Financial Officer at Evoke

"Illegal operators pay no taxes, ignore responsible gambling obligations and expose consumers to greater risks. This has a significant macroeconomic impact through lost fiscal revenues, unfair competition and zero consumer protection." - Dan Ghita, Chair at Rombet

Why it matters for German players

The situation in Romania serves as a cautionary tale for the German gambling market. In Germany, channelization—the goal of guiding players toward legal offers—is a central theme of the State Treaty on Gambling 2021 (GlüStV 2021). German players benefit from the highest level of security at providers on the GGL whitelist through the LUGAS system and the cross-provider deposit limit of €1,000 per month. Additionally, a stake limit of €1 per spin applies to slots.

However, if the tax burden for legal providers in Germany were to rise further, similar to Romania, or if regulation becomes too restrictive, legal offers could become less attractive compared to the black market. The black market often lures players with higher bonuses or a lack of limits but provides no legal certainty or protection against addiction. For German users, it is therefore essential to play exclusively with providers holding a German license, as only they guarantee compliance with strict rules on addiction prevention and data protection.

What it means for GGL-licensed casinos

For operators with a license from the Gemeinsame Glücksspielbehörde der Länder (GGL), the Evoke case underscores the importance of stable political frameworks. Excessive tax pressure jeopardizes the ability of companies to invest in modern player protection technologies and attractive legal products. GGL casinos must be able to rely on authorities taking consistent action against illegal offshore competitors to maintain fair competition. The development in Romania shows that market shares can quickly be lost to the black market if the balance between regulation and market viability tips.