Bulgaria Rejects Calls for Gambling Tax Increase and Ad Ban

Bulgaria's government has turned down opposition requests to significantly raise gambling taxes and impose stricter advertising restrictions, despite acknowledging that the country's channelisation rate stands at around 60%.
Earlier this week, a parliamentary discussion took place regarding the increasing demand for illegal gambling, during which amendments to the current gambling regulations were proposed.
While parliament did approve some minor additional taxes targeted at a specific niche, broader proposals that would have nearly doubled operator fees and enforced an advertising ban were dismissed. Currently, online gambling tax in Bulgaria is set at 25% of gross gaming revenue (GGR), along with a 10% corporate tax, an increase from the earlier rate of 20% instituted this year.
Deputy Finance Minister Lyudmila Petkova warned against hasty tax hikes. She explained to the budget committee that raising taxes could inadvertently drive gamblers towards unregulated and illegal gambling platforms.
While the idea of increasing gambling taxes might seem appealing, Petkova stressed that doing so without addressing the grey market first could lead to a shift of players from the legal market to illicit operations. "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 said.
The Finance Ministry is reportedly preparing a thorough revision of Bulgaria’s gambling legislation.
Opposition parties such as "We Continue the Change" and "Democratic Bulgaria" criticized the government for their lenient approach towards gambling advertisements and their lack of action against illegal operators. Opposition MP Venko Sabutev voiced his discontent with the government's inaction on amending the Gambling Act, questioning the inconsistency in legislative changes. "How could you change the Labour Code through transitional 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 unanimously approved amendments banning gambling advertisements on television, radio, print media, and online platforms, with limited exceptions for state-owned entities like the Bulgarian Sports Totalisator. Under these regulations, billboard advertising remains permissible but must be located no less than 300 metres from schools, universities, playgrounds, and similar areas. Additionally, at least 10% of advertisement space must include warnings about the risks associated with gambling.
Policies dictating advertising on gambling service buildings are also stringent, permitting no more than 50 square meters or 20% of the building’s facade to display gambling ads. Mark Chakravarti, the investments director at local operator Sportingwin, noted that the ad ban has negatively impacted revenue for operators servicing the Bulgarian market, referencing global studies that indicate a potential revenue drop of 20% within two months following such advertising restrictions. "I think it’s been very similar in the Bulgarian market," he remarked in October 2024.