Bulgarian Finance Ministry Dismisses Calls for Full Gambling Ad Ban and Tax Rise

Bulgaria’s Deputy Finance Minister Lyudmila Petkova has rejected opposition proposals for a near-total ban on gambling advertising and a sharp increase in the gross gaming revenue (GGR) tax rate, arguing that such measures would drive players toward the illegal market.

The two opposition parties behind the proposals—We Continue the Change and Democratic Bulgaria—were once coalition partners before splitting after April’s elections but have both continued to push for stricter gambling controls. We Continue the Change has advocated for prohibiting gambling marketing in densely populated areas on top of existing restrictions near schools and high-foot-traffic zones, while Democratic Bulgaria has repeatedly called for raising the GGR tax from 20% to 30% and boosting licence fees.

Speaking during a special commission on the second reading of Bulgaria’s 2026 budget, Petkova cautioned that isolated changes could backfire. She noted that the Ministry of Finance favours a comprehensive overhaul of the entire gambling legal framework to avoid inadvertently expanding the black market.

Petkova pointed out that the grey sector in Bulgarian gambling already accounts for roughly 40% of the market. She described the current 20% GGR tax as a “European balanced standard,” noting that most EU countries apply rates of 20% or 25%. Any tax increase, she warned, would shift demand from licensed operators to unlicensed ones.

Petkova also confirmed that the Ministry of Finance will begin a full review of the Gambling Act. She explained that past regulatory changes were often rushed—inserted as amendments between the first and second readings of unrelated laws—creating long-term problems. “We are starting work on a comprehensive review … then years are needed to correct the consequences of the inaccuracies,” she said, paraphrasing her earlier comments.

One gambling-related amendment already included in the 2026 Budget is the introduction of licences for gambling affiliates, a measure designed to help plug the budget deficit following prolonged inflation before Bulgaria’s entry into the Eurozone. It remains unclear whether this provision will survive before the final National Assembly vote.

Any future reform of the gambling act will likely also require input from the National Revenue Agency, the sector’s regulator under the Ministry of Finance. However, the agency currently lacks a Director of Gambling Policies following the departure of Alexander Popov.