Bulgarian Government Proposes Gambling Tax Increase in 2026 Budget

Proposal for Gambling Tax Increase

Bulgaria is preparing a significant change in its fiscal policy concerning gambling activities. The government is considering raising the gambling tax rate by 5%, a move that could impact the industry starting in 2026.

Details of the Tax Changes

The medium-term budget plan for 2026 to 2028 outlines amendments to Bulgaria’s Gambling Act, aiming to raise the tax on gambling operations to 25%. This tax increase will apply to various types of gaming such as online gambling, lotteries, bingo, raffles, toto, and keno.

Currently, gambling operators pay a one-time licensing fee of 300,000 Bulgarian lev (approximately $177,000) along with a 20% tax calculated on the net betting revenue — the difference between bets placed and player winnings.

If the proposed increase is approved, the new tax rate will take effect on January 1, 2026. Officials project that this measure could generate an extra $37 million in tax revenue, which the Ministry of Finance intends to allocate towards social and economic development projects.

It is worth noting that a previous proposal to raise the gambling tax to 30% did not pass. Still, the current proposal reflects ongoing efforts to increase taxation on gambling activities.

Global Context of Gambling Taxation

Bulgaria is not alone in considering higher gambling taxes. Similar discussions have taken place in the United Kingdom, where the government has been exploring tax hikes despite opposition from the gambling industry. Critics argue that increased taxes could reduce the competitiveness of legal gambling venues and might inadvertently boost illegal gambling operations.

Consideration of Social Media Restrictions for Minors

Separately, Bulgarian lawmakers have proposed restricting access to social media platforms for users under the age of 15. Advocates of this policy raise concerns about the mental health impact of social networks on young people, including risks of addiction.

Kostadin Angelov, chair of the Parliamentary Health Committee, highlighted parallels between the potential harms of excessive social media use and gambling addiction, emphasizing the particular vulnerability of children and adolescents to these influences.