Bulgaria’s parliament has declined opposition demands to sharply raise gambling taxes and impose a blanket advertising ban, even as the government conceded that only about 60% of the country’s gambling activity runs through licensed channels.
The measures came up during a parliamentary debate this week on growing illegal gambling demand, which included proposed amendments to the current regulation. Members of parliament approved a minor tax addition targeting a specific niche but rejected the broader package, which sought to nearly double operator fees alongside the advertising restrictions.
Online gambling in Bulgaria is currently taxed at 25% of gross gaming revenue (GGR), on top of a 10% corporate tax. The GGR levy was raised earlier this year from 20%. The opposition wanted to push operator costs higher still, arguing that the sector is under-taxed relative to the harm it causes.
The government’s admission on channelisation is central to the dispute. A rate of roughly 60% means around four in ten euros wagered by Bulgarian players sit outside the regulated market, beyond the reach of both tax collection and consumer protection rules.
Government cautions against rapid tax increases
Deputy Finance Minister Lyudmila Petkova told the budget committee that raising the tax further could push players deeper into unregulated and illegal platforms. She said the increase might look beneficial on paper but risked moving customers from the legal market into the shadow economy unless the grey sector is curbed first.
Yes, the proposal to increase [taxes] sounds very well, but any increase before taking measures to limit the grey sector means shifting players from the legal to the illegal market.
Petkova also said the Finance Ministry is preparing a full revision of Bulgaria’s gambling legislation, which suggests the government wants to address channelisation and fiscal policy together rather than through piecemeal amendments. The scale of the leakage is not unique to Bulgaria: an industry study estimated unregulated online gambling handled $5.9 trillion globally in 2025.
Opposition presses for stricter controls
Opposition parties “We Continue the Change” and “Democratic Bulgaria” criticised the government for what they described as a permissive stance on gambling promotion and weak enforcement against illegal operators.
Venko Sabutev, an opposition MP pushing for tighter rules, said he was frustrated by the refusal to amend the Gambling Act through the transitional and final provisions used elsewhere in the legislative process.
How could you change the Labour Code through transitional and final provisions, but not be able to change the Gambling Act and stop gambling advertising through the same mechanism? Enough with this hypocrisy.
The clash over parliamentary mechanics reflects a wider divide over how far Bulgaria should go in restricting a sector that still contributes tax revenue. Other European markets are wrestling with the same balance, with Greece recently opening a consultation on reform aimed at the black market.
The current advertising ban
Bulgaria already operates a strict advertising regime. On 30 April 2024, parliament unanimously passed amendments banning gambling advertising on television, radio, print and digital platforms, with narrow exceptions for the state-owned Bulgarian Sports Totalisator.
Billboard advertising remained permitted, but only at least 300 metres from schools, universities, playgrounds and other protected areas, with at least 10% of the space given to a warning about the dangers of gambling. Signage on buildings offering gambling services was capped at 50 square metres or 20% of the facade.
The rules have weighed on operator revenue. Mark Chakravarti, investments director at local operator Sportingwin, told iGB in October 2024 that the ban had cut income for Bulgaria-facing operators.
Global research shows that when they have these bans put in place, especially limiting TV commercials, there is a drop of 20% revenue in the next two months. I think it’s been very similar in the Bulgarian market.
What happens next
With the near-doubling of fees and a full advertising ban off the table for now, attention shifts to the Finance Ministry’s promised overhaul. How that revision treats the 40% of activity outside the licensed market, and whether it pairs any future tax rise with tougher action on illegal operators, will decide whether Bulgaria narrows its channelisation gap or widens it.
Source: Bulgarian National Assembly, iGB
