The Bulgarian government has rejected a proposal for a blanket ban on ads and higher gaming taxes. The decision comes amid repeated opposition calls for stricter restrictions.
Parliament Rejects the Call Amid Channelization Concerns
Bulgaria’s opposition fervently floated the idea of introducing a blanket ban on ads, amid gambling harm concerns. The opposition argued that the gambling tax should be increased as well.
However, the government declined the proposed changes, citing, among other things, the country’s low channelization rate. For context, experts believe that only 60% of gamblers in the country are playing with legal operators. As a result, further restrictions could turn the already bad channelization rate into an abysmal one.
Additionally, Deputy Finance Minister Lyudmila Petkova noted that the GGR tax was already increased earlier this year from 20% to 25%. A second tax hike within such a short span would place an unnecessary burden on the country’s gaming sector, making it even less able to compete with the unlicensed market.
Petkova clarified that a higher tax would bring short-term benefits while hurting the industry in the longer term and potentially causing more players to play with unregulated operators.
Still, the parliament did greenlight slight taxation changes, but firmly rejected the idea of a tax hike affecting the whole gambling sector.
Bulgaria Already Boasts a Strict Gambling Ad Regime
For reference, Bulgaria already boasts certain rules on gambling ads. Currently, licensed operators, with the exception of the state lottery, are prohibited from marketing their products via most forms of media. At the same time, billboard ads in the vicinity of learning establishments were strictly outlawed and ads appearing on buildings were required to follow new guidelines.
According to experts, the new rules, which were introduced in 2024, led to a sharp drop in GGR, giving credibility to Petkova’s concerns about further restrictions.
However, opposition parties were displeased with the rejection of the current proposal, accusing the current government of being too lenient toward both the legal and illegal gaming sector.
Opposition members proposed both improved restrictions for legal companies and tougher measures against their illegal counterparts. Some accused the government of being hypocritical due to the fact that it had no qualms introducing labor changes, but seems reluctant to do the same for the gaming sector.