Bulgarian Parliament Rejects Opposition’s Gambling Tax Hike and Ad Ban Demands
2026-07-22
Source: iGaming Business
Bulgaria’s parliament rejected opposition proposals to nearly double gambling taxes and ban advertising, while the finance ministry warned such moves could drive players to the illegal market. The government earlier passed a partial advertising ban in April 2024, which local operators say caused a 20% revenue drop.
Bulgaria’s government has dismissed opposition calls to sharply increase gambling taxes and impose a comprehensive advertising prohibition, even as it admitted that the country’s legal gambling channelisation rate stands at only approximately 60%.
During a parliamentary debate this week, legislators approved minor tax adjustments for a specific niche but refused broader measures that would have almost doubled operator fees and banned gambling ads outright. The current online gambling tax in Bulgaria is 25% of gross gaming revenue (GGR) plus a 10% corporate tax, up from 20% earlier this year.
Minister Warns of Grey Market Shift
Deputy Finance Minister Lyudmila Petkova cautioned the budget committee that raising taxes too quickly could push players toward unregulated and illegal platforms. She argued that while a tax increase might seem beneficial, “any increase before taking measures to limit the grey sector means shifting players from the legal to the illegal market.” Petkova also disclosed that the Finance Ministry is preparing a comprehensive overhaul of Bulgaria’s gambling legislation.
Opposition Slams ‘Hypocrisy’
Opposition parties We Continue the Change and Democratic Bulgaria criticised the government for what they see as a lenient stance on gambling promotion and insufficient action against illegal operators. Venko Sabutev, a prominent opposition MP, expressed frustration that the Labour Code could be amended through transitional provisions of the legislative process while the Gambling Act could not. He called for an end to what he termed hypocrisy in the committee debate.
Earlier Advertising Ban and Its Impact
On 30 April 2024, the Bulgarian parliament unanimously passed amendments banning gambling advertising on television, radio, print media, and digital platforms, with narrow exceptions for the state-owned Bulgarian Sports Totalisator. Billboard advertising remains permitted but must be at least 300 metres from schools, universities, playgrounds and other protected areas, and at least 10% of the ad space must carry a warning about gambling risks. Ads on buildings offering gambling services are limited to 50 square metres or 20% of the facade.
According to Mark Chakravarti, investments director at local operator Sportingwin, the advertising ban led to a steep decline in revenue for Bulgaria-facing operators. “Global research shows that when they have these bans put in place ... there is a drop of 20% revenue in the next two months,” he said, adding that the Bulgarian market saw a similar effect.