Bulgarian Government Rejects Opposition Push for Higher Gambling Tax and Ad Restrictions
2026-07-22
Source: Focus Gaming News
Bulgaria has rejected opposition proposals to raise gambling tax to 30% and impose new advertising bans, with the government warning that a further hike would drive more players to the unregulated market, which already accounts for 40% of activity. Meanwhile, the 2026 budget includes plans for a new affiliate licensing regime with a €6,000 annual fee and 10% commission tax.
Bulgaria’s executive branch has dismissed opposition proposals to raise gambling taxes and tighten advertising rules, citing risks to the regulated market’s already fragile channelisation rate. Instead, the government has initiated a full review of the Gambling Act, according to Deputy Finance Minister Lyudmila Petkova.
The tax on online gambling was lifted from 20 per cent to 25 per cent earlier this year, paired with a 10 per cent corporate levy. The Democratic Bulgaria party had advocated for a further increase to 30 per cent on gross gaming revenue, alongside nearly doubling operator licence fees. Separately, the We Continue the Change party called for new advertising curbs. Petkova cautioned that a second rate hike so soon would likely push more activity into the unregulated sector, which already commands an estimated 40 per cent of the total market.
“The real effect of the measure would be the transfer of players from the legal to the illegal market,” Petkova warned, adding that most jurisdictions apply a 20 or 25 per cent rate and that higher taxes consistently expand the grey sector. Opposition MP Venko Sabutev criticised the government’s refusal to amend the Gambling Act through transitional provisions, accusing it of hypocrisy over its willingness to amend other laws in that manner.
Advertising rules and affiliate licensing
Bulgaria enacted comprehensive advertising restrictions in 2024, banning gambling ads on television, radio, print, and digital platforms – with an exemption for the state-owned Sports Totalisator. Billboard ads remain permissible provided they are at least 300 metres from schools, universities, playgrounds, and similar protected zones. Venue signage is capped at 50 square metres or 20 per cent of a building’s facade.
The 2026 budget outlines a new licensing regime for gambling affiliates. Affiliates would face a two-part levy: a fixed annual fee of €6,000 and a 10 per cent variable tax on commissions derived from promotional activities. Officials project that these measures could generate an additional €100 million in annual tax revenue for the state.