Proposals for gambling tax rise and advertising ban rejected in Bulgaria
The government says it has begun a review of Bulgaria’s Gambling Act as it aims to tackle unlicensed offerings.
Bulgaria.- The government of Bulgaria has rejected opposition calls for an increase to gambling taxes and a ban on most gambling advertising in areas with dense populations. Deputy Financial Minister Lyudmila Petkova said the government has begun a full review of Bulgaria’s Gambling Act but warned that the tax proposal could harm an already weak channelisation rate to the regulated sector.
The tax rate for online gambling in Bulgaria was already raised this year from 20 to 25 per cent, alongside a 10 per cent corporate tax. The Democratic Bulgaria party proposed that the rate levied on gross gambling revenue be increased to 30 per cent. It also proposed changes that would have nearly doubled operator fees. Meanwhile, the We Continue the Change party called for the new advertising restrictions.
Petkova cautioned that a further tax hike so soon could drive more players to the unregulated market, which is estimated to already account for 40 per cent of the market.
“The proposal… sounds very good at first glance, but the real effect of the measure would be the transfer of players from the legal to the illegal market,” she argued. “The grey sector’s share of the gambling market is currently around 40 per cent… most countries apply a tax of 20 or 25 per cent. Any increase in gambling taxation leads to an increase in the grey sector.”
Opposition MP Venko Sabutev expressed frustration at the refusal to amend the Gambling Act through transitional provisions. “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 said during committee discussions.
Bulgaria already passed amendments to the Gambling Act in 2024 that banned gambling advertising on television, radio, print and digital platforms, with exceptions for the state-owned Sports Totalisator. Billboard advertising remains permitted if it’s located at least 300 metres away from schools, universities, playgrounds and other protected areas. Restrictions also apply to advertising on gambling venues themselves, where no more than 50 square metres or 20 per cent of a building’s facade can be used for promotional material.
The 2026 budget includes proposals for a licensing regime for gambling affiliates in Bulgaria. Affiliates would face a two-part levy intended to increase tax revenues and prevent tax evasion: a fixed €6,000 annual charge and a 10 per cent variable tax on commissions from activities promoting gambling. Officials estimate the changes could add €100m in annual tax revenue.
