Bulgaria’s government has turned down opposition demands for a sharp increase in gambling taxes and tighter advertising rules, even as officials conceded the country channels only about 60% of betting activity into its regulated market. A parliamentary debate this week produced a narrow compromise: lawmakers approved a small, niche-specific levy while dismissing proposals to nearly double operator fees and impose a broader advertising ban. The decision sets the fiscal course for one of the EU’s smaller regulated betting markets and hands the Finance Ministry room to prepare a wider legislative overhaul.
Why Sofia’s Tax Decision Matters for Operators
The refusal is less about generosity toward the industry and more about a fear of leakage. With four in ten euros of gambling demand estimated to sit outside the licensed system, the government’s argument is straightforward: raise the cost of playing legally, and players drift further into unregulated channels.
- Online gambling in Bulgaria is taxed at 25% of gross gaming revenue (GGR), raised from 20% earlier this year, plus a 10% corporate tax.
- Parliament approved only a minor, niche-focused tax addition and rejected the near-doubling of operator fees.
- Officials put the channelisation rate at roughly 60%, meaning a substantial grey market already competes with licensed operators.
- A comprehensive revision of the Gambling Act is being prepared by the Finance Ministry.
- The advertising ban passed in 2024 reportedly cut revenue for Bulgaria-facing operators by around 20% within two months.
Government cautions against moving too fast
Deputy Finance Minister Lyudmila Petkova took the case to the budget committee directly. Increasing tax before curbing the grey sector, she warned, would simply move players from the legal market into the shadow economy.
“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 told the committee. She confirmed the ministry is drafting a full rewrite of the country’s gambling legislation, which suggests the current standoff is a pause rather than a settled position.
The logic is defensible on paper. But it also raises a harder question: if a 60% channelisation rate is the reason not to raise taxes now, what level would finally justify doing so?
What the Opposition Wanted
Two opposition blocs, “We Continue the Change” and “Democratic Bulgaria,” accused the government of tolerating gambling promotion and doing too little against unauthorised operators. They pushed to amend the Gambling Act through transitional and final provisions, a fast-track parliamentary route.
Venko Sabutev, one of the more vocal advocates for tighter controls, seized on a procedural inconsistency during committee discussions.
“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 asked. “Enough with this hypocrisy.”
His frustration points to something familiar in gambling policy across Europe: the mechanism used to pass a reform often becomes the battleground, not the reform itself.
The advertising rules already in force
On 30 April 2024, the Bulgarian parliament unanimously approved amendments banning gambling advertising across television, radio, print and digital platforms. Narrow exceptions were carved out for the state-owned Bulgarian Sports Totalisator, a distinction that leaves the public operator with a promotional lane its private competitors no longer have.
The rules did not eliminate outdoor advertising, but they boxed it in tightly:
| Advertising type | Restriction |
|---|---|
| Billboards | Permitted only at least 300 metres from schools, universities, playgrounds and other protected areas, with at least 10% of the space carrying a gambling-risk warning |
| Building facades (gambling venues) | No more than 50 square metres or 20% of the total facade |
| TV, radio, print, digital | Banned, with exceptions for the Bulgarian Sports Totalisator |
The commercial effect landed quickly. Mark Chakravarti, investments director at local operator the Bulgarian-licensed brand Sportingwin, told iGB in October 2024 that the ban triggered a steep revenue drop for operators facing the market.
“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 said. “I think it’s been very similar in the Bulgarian market.”
The Bind Bulgaria Cannot Easily Escape
Here is the tension at the centre of the debate. Advertising restrictions shrink the visibility of licensed operators, which arguably makes it harder to pull players away from unregulated sites. Yet those same restrictions are the tool most favoured by lawmakers who want to reduce gambling harm. Push tax higher and channelisation may fall; keep advertising suppressed and the legal market loses reach. Each lever the government pulls seems to strain another.
That is the reason the promised legislative overhaul carries more weight than this week’s vote. A single tax adjustment is easy to reverse. A rewritten Gambling Act would reset the framework operators plan around, from licensing costs to promotional rights, and it gives regulators a template they can adjust as channelisation figures move.
For now, operators keep the tax status quo they can at least model. What they do not have is certainty about how long it lasts.
Frequently Asked Questions
What is the current online gambling tax rate in Bulgaria?
Online gambling is taxed at 25% of gross gaming revenue, alongside a 10% corporate tax. The GGR rate was raised from 20% earlier this year.
What did the government reject?
It rejected a near-doubling of operator fees and a broader advertising ban proposed by opposition parties. Only a minor, niche-focused tax addition was approved.
Why did the Finance Ministry oppose higher taxes?
Deputy Finance Minister Lyudmila Petkova argued that raising taxes before curbing the grey market would push players from licensed operators toward unregulated platforms, worsening an already imperfect channelisation rate of about 60%.
Are gambling adverts still allowed in Bulgaria?
Mostly no. A 2024 law banned advertising on TV, radio, print and digital platforms, with limited exceptions for the state-owned Bulgarian Sports Totalisator and tightly restricted billboard and facade advertising.
What happens next?
The Finance Ministry is preparing a full revision of the Gambling Act, which is expected to reshape both taxation and advertising rules rather than adjust them piecemeal.
