The Bulgarian government has rejected calls from opposition parties to implement a significant rise in gambling taxes and stricter regulations on advertising. This decision comes despite the admission that the country has only around a 60% channelisation rate for gambling.
During a parliamentary debate this week, various amendments to the existing gambling regulations were discussed amid rising concerns about illegal gambling activities. Lawmakers chose to pass minor tax increases targeting specific niches but turned down broader proposals aimed at nearly doubling operator fees and instituting a comprehensive advertising ban.
Currently, online gambling in Bulgaria is taxed at 25% of gross gaming revenue (GGR), along with a 10% corporate tax. This tax rate was raised earlier this year from its previous level of 20%.
Deputy Finance Minister Lyudmila Petkova warned that raising taxes too quickly could inadvertently drive gamblers to illegal platforms. She pointed out the potential dangers of increasing gambling taxes without first addressing the grey market. "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 stated. She added that the Finance Ministry is working on a thorough revision of Bulgaria’s gambling laws.
The opposition, particularly the parties "We Continue the Change" and "Democratic Bulgaria", criticized the government for what they viewed as leniency towards gambling promotion and inadequate measures against illegal operators. Venko Sabutev, an opposition MP, voiced his disappointment regarding the lack of amendments to the Gambling Act, expressing frustration over the inconsistency in passing legislation. "How could you change the Labour Code through transitional and final provisions, but not change the Gambling Act and stop gambling advertising through the same mechanism? Enough with this hypocrisy," he asserted.
On April 30, 2024, the Bulgarian parliament did pass measures banning gambling advertising across television, radio, print, and digital platforms, with exceptions for the state-owned Bulgarian Sports Totalisator. Billboards were allowed but had to be at least 300 meters from schools and other protected areas, with 10% of the advertising space dedicated to warnings about gambling risks.
Advertising on buildings offering gambling services is also tightly regulated, with a restriction of no more than 50 square meters or 20% of the facade for promotional content. Mark Chakravarti, the investment director at local operator Sportingwin, remarked that the advertising ban has led to a significant revenue decline for operators targeting the Bulgarian market. "Global research shows that these bans lead to a 20% revenue drop in the months following their implementation, especially with TV ad restrictions. I believe we are witnessing a similar trend in Bulgaria," Chakravarti commented in October 2024.
