Bulgaria Rejects Gambling Advertisement Ban and Additional Tax Increases
Government Declines Opposing Measures on Gambling Ads and Taxes
The Bulgarian government has dismissed recent proposals advocating for a complete ban on gambling advertisements and higher taxes on the gaming sector. These suggestions, mainly pushed by opposition parties, sparked debates due to concerns over gambling harms and the industry’s impact.
Concerns Over Legal Market Channelization Influence Decision
The opposition called for stringent restrictions including an advertising ban and an increase in gambling taxes, aiming to address issues related to gambling addiction and unregulated activities. However, the government resisted these changes, emphasizing the already low channelization rate in Bulgaria’s gambling market, where only about 60% of players are engaged with licensed operators.
Officials warned that stricter measures might worsen this situation by pushing more gamblers to unregulated platforms. Deputy Finance Minister Lyudmila Petkova explained that the gross gaming revenue (GGR) tax was recently raised from 20% to 25%, and another hike could impose excessive stress on the regulated industry, undermining its competitiveness against illegal operators.
Petkova further highlighted that while higher taxes could offer short-term fiscal gains, they might damage the sector’s sustainability and encourage an increase in gambling activities outside of legal channels. Consequently, the parliament chose to approve only minor tax adjustments, firmly rejecting a sweeping tax hike across the gambling industry.
Existing Strict Regulations on Gambling Advertising in Bulgaria
Bulgaria already enforces rigorous rules governing gambling advertisements. Licensed operators, excluding the state lottery, are barred from promoting gambling products through most media outlets. Advertising near educational institutions is strictly prohibited, and new guidelines restrict billboards on buildings.
These regulations, introduced in 2024, have contributed to a notable decline in gross gaming revenue, reinforcing concerns about the potential negative effects of any additional advertising restrictions.
Opposition parties have expressed dissatisfaction with the rejection of their proposal, accusing the government of leniency both towards the licensed sector and illegal gambling operations. They have pushed for stronger measures targeting legal companies and tougher actions against unlicensed operators. Critics of the government argue that while labor reforms were implemented decisively, similar determination seems absent in handling gambling industry issues.
