Bulgaria’s government has dismissed opposition efforts to impose steeper gambling taxes and a broad advertising ban, following debates in parliament. Despite concerns about the country’s low channelisation rate—estimated at only 60%—lawmakers opted for a modest increase in taxes targeting a niche segment. Meanwhile, more sweeping proposals, such as nearly doubling operator fees and instituting stricter advertising policies, didn’t pass. Currently, Bulgaria taxes online gambling at 25% of GGR, plus a 10% corporate tax, increased earlier this year from 20%.
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Government Warns Against Rapid Tax Changes
Deputy Finance Minister Lyudmila Petkova addressed the budget committee, cautioning that hiking taxes on gambling could drive bettors towards unregulated markets. Petkova articulated that while a tax increase might seem advantageous, without first addressing the grey market, it risks expanding illegal gambling operations. “An early tax hike before mitigating the grey sector can push players to illegal markets,” Petkova noted, adding that the Finance Ministry is preparing a broad overhaul of gambling laws in Bulgaria.
Opposition Criticizes Inaction on Gambling Promotion
Opposition parties “We Continue the Change” and “Democratic Bulgaria” lambasted the government for its perceived leniency towards gambling promotions and inadequate crackdowns on illegal operators. Venko Sabutev, a vocal opposition MP, expressed dissatisfaction with the government’s reluctance to amend the Gambling Act through parliamentary proceedings. “If the Labour Code can be amended via transitional provisions, the same should apply to the Gambling Act to curb advertising,” he argued, labelling the approach hypocritical.
Existing Advertising Regulations
In April 2024, Bulgaria’s parliament unanimously approved a ban on gambling ads across TV, radio, print, and digital media, sparing only the state-run Bulgarian Sports Totalisator in narrow circumstances. Billboard ads remain, provided they’re distant from schools and playgrounds and include warnings about gambling risks. Ads on gambling venues must not cover more than 50 square meters or 20% of the building’s facade. According to Mark Chakravarti from Sportingwin, these restrictions have led to a decline in revenue for operators. As noted in October 2024, “Global bans, especially on TV ads, typically cause around a 20% revenue drop within two months,” Chakravarti observed, suggesting Bulgaria is no exception.
Upcoming Legislative Revisions
The Bulgarian Finance Ministry is expected to present its complete legislative proposal in the coming months. Lawmakers will need to weigh the impact of any changes carefully, as they navigate potential economic and regulatory repercussions.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
