Bulgaria’s government has rejected calls from opposition parties to raise gambling taxes significantly and impose stricter advertising bans. This decision comes amid concerns that the country’s channelisation rate for gambling is approximately 60%, highlighting the demand for illegal gambling.
A parliamentary debate this week addressed the growing issue of unregulated gambling and included proposed amendments to the existing gambling regulations. While lawmakers approved minor tax increases focused on specific areas, they dismissed proposals for substantially raising operator fees and a blanket advertising ban.
Currently, Bulgaria imposes a 25% tax on online gambling revenue, alongside a 10% corporate tax. Earlier this year, the online gambling tax was raised from 20%.
Deputy Finance Minister Lyudmila Petkova cautioned that increasing taxes could unintentionally drive gamblers towards illegal and unregulated platforms. She pointed out that while higher taxes may seem attractive, they could push players from the legal market to the underground economy if measures to tackle the grey market are not first implemented.
"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 explained. She noted that the Finance Ministry is working on a comprehensive revision of Bulgaria’s gambling legislation.
Opposition parties including “We Continue the Change” and “Democratic Bulgaria” criticized the government for its lenient stance on gambling promotions and insufficient action against illegal operators. Prominent opposition MP Venko Sabutev expressed his frustration at the inability to amend the Gambling Act to curb advertising during the parliamentary discussions.
"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," Sabutev stated.
On April 30, 2024, the Bulgarian parliament had previously passed amendments banning gambling advertisements across television, radio, print, and digital media, with exceptions for the state-owned Bulgarian Sports Totalisator.
Although billboard advertising was still allowed, it had to be positioned at least 300 meters away from schools, universities, playgrounds, and other sensitive areas. Furthermore, at least 10% of the advertising space was required to feature warnings about the dangers of gambling. Advertisements on buildings offering gambling services were capped, allowing only 50 square meters or 20% of the building's facade to be used for such promotions.
Mark Chakravarti, investments director at local operator Sportingwin, noted that the advertising ban led to a sharp decline in revenue for operators targeting the Bulgarian market. "Global research shows that when these bans are implemented, especially limiting TV commercials, there is a drop of 20% in revenue in the next two months. I think it’s been very similar in the Bulgarian market," he remarked in October 2024.
