Bulgaria Rejects Proposals to Limit Gambling Advertising

The Bulgarian government has rejected opposition requests for significant increases in gambling taxes and stricter advertising restrictions, although it acknowledges that the country's return rate is only around 60%. Parliamentary debates concerning the growing demand for illegal gambling took place last week and included proposed amendments to the existing gambling regulation. Members of parliament approved a small additional tax for a specific niche but rejected broader measures aimed at nearly doubling fees for operators and banning advertising.

Tax Policy and Its Impact

Currently, the tax on online gambling in Bulgaria is 25% of gross gaming revenue (GGR), along with a 10% corporate tax. Earlier this year, this rate was increased from the previous 20%. Deputy Minister of Finance Lyudmila Petkova warned the budget committee that a sharp increase in taxes could redirect players to illegal sectors. According to her, increasing taxes without reducing the grey market risks transferring players from the legal sector to the shadow one.

Opposition's Position

The party coalitions "We Continue the Change" and "Democratic Bulgaria" criticized the government for its lenient stance on gambling advertising and insufficient measures against illegal operators. Venko Sabutev, a prominent opposition MP, expressed dissatisfaction with the refusal to amend gambling legislation through transitional provisions. He criticized the government for hypocrisy on this issue.

Existing Advertising Ban

On April 30, 2024, the Bulgarian parliament unanimously adopted amendments banning gambling advertising on television, radio, print, and digital platforms, except for the state-run Bulgarian Sports Totalizator. Advertising on billboards is allowed provided it is placed at least 300 meters away from educational institutions, and 10% of the billboard area must carry a warning about the risks of gambling. For buildings offering services, the restriction is 50 square meters or 20% of the facade area.

Economic Consequences of the Ban

According to Mark Chakravarti, investment director of operator Sportingwin, the advertising ban has led to a significant decrease in revenues for operators working in Bulgaria. "Global studies show that restrictions, especially on TV advertising, lead to a revenue drop of 20% in the next two months," he noted in an interview with iGB in October 2024.