Romania’s government has overhauled gambling regulations through an emergency decree allowing municipalities to restrict or ban betting shops and slot machine halls in the biggest tightening of the industry the country has seen.

Licensed operators must now obtain not only a national permit but also local authorisation to open a gambling venue, giving mayors and local councils a decisive veto power. Officials say more than 200 localities could pursue full bans.

There has been a rapid expansion of Romania’s gambling industry, with tens of thousands of slot machines and betting outlets open nationwide, especially in the capital, Bucharest.

Until now, gambling halls were authorised centrally without city approval, leaving communities powerless even as venues proliferated near schools and residential areas.

“From now on, local authorities can clearly say ‘yes’ or ‘no’,” said Diana Stoica, an MP for the Save Romania Union party, who led the legislative campaign. “If they say yes, they can decide exactly where these venues can operate and under what conditions.”

At least nine cities have already signalled plans to pursue full bans. Among them is Slatina, in Romania’s south, where the mayor, Mario De Mezzo, has vowed to get rid of all gambling halls as existing licenses expire.

“The simplest solution was to eliminate these businesses entirely from the city. They are toxic for society,” De Mezzo said.

The Romanian gambling sector is a multibillion-euro market, generating close to €1bn in state taxes in 2025 despite official audits identifying several million euros in uncollected revenue.

For years, the fiscal benefit has been one of the main justifications for not imposing restrictions despite public pressure, but advocates for the regulation argue the economic benefits come at a great social cost.

“This is a public health problem,” Stoica told the Guardian. “Gambling addiction has the highest suicide rate of any addiction and the Romanian state has allowed this industry to explode over the past 20 years.”

She noted the previous framework treated gambling more leniently than other businesses: “If you wanted to open a flower shop, you needed a permit from city hall. For gambling venues, you didn’t.”

Years of complaints from residents and civil society fuelled the political push. “People write to us constantly; entire families are affected by addiction. We turned those messages into legislation,” Stoica said.

At a recent press conference in Bucharest, the MP pointed to an apartment building behind her that housed six betting shops at ground level, located near several schools.

“We are not in Las Vegas,” Stoica said. “This crowding of destructive machines is happening in the middle of residential neighbourhoods.”

Ciprian Cucu, the mayor of Bucharest, said he needed to consult the local council before deciding on a ban. He suggested gambling venues might be limited to certain areas, such as the Old Town, though he said this was only one idea.

The Romanian parliament is also debating additional restrictions on gambling. Proposed measures include banning people under 21 from gambling halls, limiting online gambling ads between 6am and midnight, capping losses to 10% of declared income and restricting adverts aimed at children. Romania’s media regulator last year banned celebrities and influencers from appearing in gambling ads.

De Mezzo said the decision to pursue a citywide ban had been shaped by witnessing the consequences of addiction in his community.

“We have seen the devastating effects these businesses have on people’s lives,” he said. “Families break apart and children go to bed hungry because parents lose their salaries at slot machines.”

In one case, he said, a 27-year-old man from Slatina had killed himself after losing large sums gambling. “That was the moment I decided these gambling halls must disappear,” De Mezzo said.

The mayor also rejected the argument that cities would lose valuable revenue if gambling venues closed. He added: “If saving even one life means postponing the paving of three streets until next year, it’s worth it.”