Bulgaria’s government has dismissed opposition calls for a significant increase in gambling taxes and stricter advertising regulations, acknowledging that the country's channelisation rate is only around 60%.
This topic was a focal point during a parliamentary debate this week, where members discussed amendments to existing gambling regulations amid rising illegal gambling activities.
While minor increases in taxation targeting a specific niche were approved, broader measures intended to nearly double operator fees and impose a blanket advertising ban were turned down. Currently, the tax on online gambling in Bulgaria is set at 25% of GGR, alongside a 10% corporate tax, which had already risen from 20% earlier this year.
Deputy Finance Minister Lyudmila Petkova warned against rapid tax hikes that could push gamblers to unregulated platforms. She underlined that while increasing the gambling tax may seem advantageous, it could inadvertently lead to a shift from the legal market to the illegal one if actions to limit the grey market are not taken first. "Yes, the proposal to increase [taxes] sounds very well, but any increase before taking measures to limit the grey sector means shifting players from the legal to the illegal market," Petkova remarked. She also indicated that the Finance Ministry is working on a comprehensive overhaul of Bulgaria's gambling legislation.
Opposition parties, including "We Continue the Change" and "Democratic Bulgaria," have criticized the government for its lax stance on gambling promotion and its failure to take sufficient action against illegal operators. Opposition MP Venko Sabutev expressed his dissatisfaction over the government's refusal to amend the Gambling Act, questioning the inconsistency in the legislative process. "How could you change the Labour Code through transitional and final provisions, but not be able to change the Gambling Act and stop gambling advertising through the same mechanism? Enough with this hypocrisy," he stated during committee discussions.
Currently, Bulgarian law prohibits gambling advertising across television, radio, print, and digital platforms, with limited exceptions for the state-owned Bulgarian Sports Totalisator, following amendments passed on April 30, 2024. Billboard advertisements are permitted only if positioned at least 300 meters from schools and other sensitive locations, with at least 10% of the space needed to include warnings about gambling risks.
Attempts to control gambling-related advertising on buildings are strict, permitting no more than 50 square meters or 20% of the facade for advertisements. Mark Chakravarti, investments director at Sportingwin, remarked that the advertising ban resulted in a significant revenue decline for operators in Bulgaria. "Global research shows that when they have these bans put in place, especially limiting TV commercials, there is a drop of 20% revenue in the next two months. I think it’s been very similar in the Bulgarian market," he noted in October 2024.
