TLDR
- Bulgaria’s government turned down opposition proposals to sharply raise gambling taxes and expand advertising restrictions.
- Lawmakers approved only a small extra tax on a limited niche area, not the broader hike sought by critics.
- Deputy Finance Minister Lyudmila Petkova warned that raising taxes too fast could push players toward illegal gambling sites.
- The Finance Ministry is working on a full rewrite of the country’s gambling law.
- Bulgaria’s existing ad ban, in place since April 2024, already limits gambling promotion across TV, radio, print, and online platforms.
Bulgaria’s government has rejected calls from opposition parties to raise gambling taxes and tighten advertising rules further. The debate played out in parliament this week as lawmakers reviewed proposed changes to the country’s gambling regulations.
Members of parliament approved a small tax increase targeting one narrow area of the gambling industry. They turned down a larger proposal that would have nearly doubled operator fees and added new advertising limits.
Bulgaria currently taxes online gambling revenue at 25%, plus a 10% corporate tax. That rate went up earlier this year from 20%.
Government Warns Against Rushing Tax Hikes
Deputy Finance Minister Lyudmila Petkova spoke to the budget committee about the risks of moving too quickly on taxes. She said raising rates without first tackling illegal gambling could backfire.
“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 said.
She added that the Finance Ministry is preparing a full update to Bulgaria’s gambling laws. No timeline was given for when that revision might be ready.
Bulgaria’s channelisation rate, the share of gambling activity happening through licensed operators, sits at roughly 60%. That means a large portion of gambling in the country still happens outside regulated channels.
Opposition Accuses Government of Inaction
Opposition parties We Continue the Change and Democratic Bulgaria pushed back hard against the decision. They accused the government of being too soft on gambling advertising and too slow to act against illegal operators.
MP Venko Sabutev, who backs stricter rules, questioned why other laws could be changed quickly but not this one. “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?” he said. “Enough with this hypocrisy.”
Bulgaria already has an advertising ban in place. Parliament passed it on 30 April 2024, banning gambling ads on television, radio, print, and digital platforms.
The state-owned Bulgarian Sports Totalisator has narrow exceptions under the rules. Billboard ads are still allowed but must sit at least 300 metres from schools, universities, and playgrounds.
Those billboards must also dedicate at least 10% of their space to a warning about gambling risks. Building signage for gambling venues is capped at 50 square metres or 20% of the building’s front.
Mark Chakravarti, investments director at Sportingwin, said the ad ban has already hurt revenue for operators in Bulgaria. He pointed to global patterns showing similar effects elsewhere.
“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,” he told iGB in October 2024. He said the impact in Bulgaria has followed a similar pattern.
For now, the tax and advertising rules stay largely as they are. Any bigger changes will likely wait for the Finance Ministry’s promised overhaul of the gambling law.
