The Bulgarian government has put a halt to opposition calls for a dramatic increase in gambling taxes and stricter advertising regulations, even as it acknowledged that the country's channelisation rate hovers around just 60%.
This decision came during a parliamentary debate aimed at addressing the increasing demand for illegal gambling, during which various amendments to the existing gambling laws were discussed. Lawmakers approved some minor tax increases targeted at a specific niche but voted against more extensive measures that aimed to nearly double operator fees and implement a comprehensive advertising ban.
Currently, Bulgaria imposes a 25% tax on online gambling gross gaming revenue (GGR), along with a 10% corporate tax, an increase from the previous 20% earlier this year.
Concerns about hasty tax hikes were raised by Deputy Finance Minister Lyudmila Petkova, who warned that increasing taxes could inadvertently steer gamblers towards unregulated and illegal sites. She stressed that while raising the gambling tax might seem beneficial, it could result in a detrimental shift of players from the legal market to the illegal economy, unless measures to limit the grey market were introduced first.
Petkova remarked, "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." She also mentioned that the Finance Ministry is currently formulating a thorough revision of Bulgaria’s gambling legislation.
Opposition parties, including "We Continue the Change" and "Democratic Bulgaria," accused the government of being lenient regarding gambling promotions and of failing to take adequate steps against illegal operators. Venko Sabutev, a leading MP from the opposition, expressed his discontent about the refusal to amend the Gambling Act using transitional provisions during parliamentary discussions. He questioned, "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."
On April 30, 2024, the Bulgarian parliament unanimously approved amendments that banned gambling advertising across television, radio, print media, and digital platforms, with limited exceptions for the state-owned Bulgarian Sports Totalisator. While billboard advertising remains permissible, it must be at least 300 meters away from schools, universities, playgrounds, and other sensitive areas, and require that at least 10% of the advertising space includes warnings about gambling risks. Additionally, ads displayed on buildings providing gambling services are strictly regulated, allowing only 50 square meters or 20% of the entire facade for promotional messages.
Local operator Sportingwin's investments director, Mark Chakravarti, noted that the ad ban has resulted in a significant revenue decline for operators in Bulgaria. "Global research shows that when these bans are instituted, particularly limiting TV commercials, there is a drop of 20% in revenue within the next two months. I believe we've observed similar trends in the Bulgarian market," he stated in October 2024.
