Bulgaria rejects opposition gambling ad ban and tax hike proposal as government cites 60% channelisation rate

Bulgaria’s government has pushed back against opposition calls to sharply raise gambling taxes and tighten advertising rules, even while acknowledging that about 60% of gambling demand is already channelled into the legal market. For PSPs and operators, the key point is straightforward: Sofia is discussing tighter rules, but it is not rushing into a tax shock that could send more volume underground.

1. Members of parliament approved only minor additional taxation aimed at a specific niche, while rejecting broader measures that would have nearly doubled operator fees and imposed an advertising ban.
2. At present, online gambling in Bulgaria is taxed at 25% of GGR, plus a 10% corporate tax. That 25% rate was increased earlier this year from 20%, so the market has already absorbed one step up before this latest debate.
3. Deputy Finance Minister Lyudmila Petkova told the budget committee that raising tax rates too quickly could push gamblers from regulated operators to unregulated and illegal platforms. Her line was that any new increase should come only after steps to limit the grey market.
4. Petkova also said the Finance Ministry is preparing a comprehensive revision of Bulgaria’s gambling legislation, which means the current debate is not the last one the sector will see.
5. The opposition parties “We Continue the Change” and “Democratic Bulgaria” argued that the government has been too permissive on gambling promotion and too slow to act against illegal operators. Venko Sabutev, an opposition MP, pressed for changes to the Gambling Act through transitional provisions during the parliamentary process.

There is one important precedent here: on 30 April 2024, the Bulgarian parliament unanimously passed amendments banning gambling advertising on television, radio, print media and digital platforms, with narrowly defined exceptions for the state-owned Bulgarian Sports Totalisator. Billboard ads were still allowed, but only if they were at least 300 metres away from schools, universities, playgrounds and other protected areas, and if at least 10% of the advertising space carried a warning about the dangers of gambling.