Bulgarian Parliament Rejects Privatization of Gambling Industry

Parliament Votes Against Gambling Privatization and State Monopoly

On Wednesday, Bulgaria’s Parliament decided against a proposal aiming to privatize the gambling sector and instead create a state monopoly. This decision followed a separate suggestion to privatize the National Lottery through a tender process, inspired by successful privatization models in various European countries including the United Kingdom.

Resistance to Nationalizing the Entire Gambling Sector

The parliamentary vote was closely contested, with 58 members supporting the rejection of privatization, 14 opposing it, and 96 abstaining. This result fell short of the 121 votes required to pass the bill. The proposal was put forward by MP Hristo Rastashki from the Mech party and received backing from the far-right Vazrazhdane party, both of which have been associated with pro-Russian positions and publicly support Russia’s foreign policies.

MP Kliment Shopov from Vazrazhdane criticized the vote’s outcome, labeling gambling as a social problem that should be eradicated. He argued that establishing a state-run monopoly typically fails to effectively regulate gambling and often strengthens the black market instead.

Shopov went further by proposing a total prohibition on gambling, asserting it unfairly exploits vulnerable individuals to generate state revenue. Despite this, he regarded Mech’s proposal as an improvement over the current framework because it would give the state comprehensive control over gambling activities.

However, the idea that state monopoly would lead to better regulation is inaccurate and would mark a regression from established European standards. Still, Shopov rightly pointed out that gambling oversight in Bulgaria remains lax.

In towns and cities across the country, casinos and gambling company advertisements are widespread, despite legal restrictions on gambling signage in certain areas. Weak enforcement of these regulations has created a regulatory gap that some operators exploit to their advantage.

Concerns Over Impact on Private Sector and Government Revenues

MP Hristo Rastashki expressed support for uniting all gambling operations under the Bulgarian National Lottery and the Sports Totalizator, asserting that this consolidation would improve industry oversight.

The GERB-UDF party opposed this view. Their MP, Branimir Balachev, warned that such a shift could result in an immediate loss of approximately 200 million euros (about 233 million US dollars) in government revenue. He highlighted Bulgaria‘s growing reputation as a gambling tourism hub, attracting visitors from countries like Israel and Iran, which bolsters the local economy.