Bulgaria's government has turned down opposition calls for a substantial tax increase on gambling and tighter advertising controls, acknowledging that the nation faces a channelization rate of roughly 60%.
In a recent parliamentary session, lawmakers debated rising demands for illegal gambling and considered amendments to existing regulations. While they approved slight tax hikes targeting niche sectors, they rejected broader changes that included nearly doubling operator fees and imposing a blanket ban on gambling advertisements.
Currently, Bulgaria imposes a 25% tax on online gambling revenues, complemented by a 10% corporate tax. Earlier this year, this gambling tax was raised from 20%.
During the budget committee meeting, Deputy Finance Minister Lyudmila Petkova cautioned against steep tax increases, warning that such measures could push gamblers toward unregulated platforms. She stated, "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 further indicated that the Finance Ministry is working on a substantial overhaul of Bulgaria's gambling laws.
Opposition parties, including "We Continue the Change" and "Democratic Bulgaria," have voiced criticism toward the government, alleging they are too lenient in their stance on gambling promotion and ineffective against illegal operators. Opposition MP Venko Sabutev expressed dissatisfaction at the refusal to amend the Gambling Act through existing parliamentary mechanisms, asking, "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."
Bulgaria recently enacted a ban on gambling advertising across television, radio, print, and digital media, with limited exceptions for the state-run Bulgarian Sports Totalisator. While billboard advertising remains allowed, it must be situated at least 300 meters away from educational institutions and playgrounds, with at least 10% of advertising space dedicated to warnings about gambling risks. Furthermore, any advertising displayed on gambling service establishments is strictly regulated, prohibiting more than 50 square meters or 20% of the facade from being used for promotional purposes.
Mark Chakravarti, the investments director at local operator Sportingwin, noted that this advertising ban has led to a significant revenue drop for operators targeting the Bulgarian market. He remarked, "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."
