Bulgaria’s Cabinet approved on November 11 proposed amendments to the Gambling Act that, if approved by Parliament, will see a complete ban on the advertising of gambling games.

“The aim is to strengthen the prevention of the development or deepening of addiction, as well as to have a positive impact on the most vulnerable groups of people,” the government information service said.

A limited presence of trademarks of organisers of gambling would be allowed only in sponsorships of sports clubs, federations, associations and organisations, as well as in support of activities in the fields of culture, healthcare and education, the statement said.

The amendments propose that the activities of affiliate operators be suspended. This ensures consistency between the ban on advertising gambling games and the regime applicable to persons who promote them.

A one-time state fee is introduced for maintaining a licence for organising the activities of production, distribution and service of gaming equipment and import, distribution and service of gaming equipment.

A five-year licence would cost 50 000 euro and a 10-year licence would cost 100 000 euro.

The alternative tax under the Corporate Income Tax Act (CITA) for land-based casinos and gaming halls is increasing in 2027. From 2028, this tax will be eliminated from the CITA and will be replaced by a two-component state tax provided for in the Gambling Act.

A minimum of 100 000 euro per month will be the variable part of the two-component state fee for issuing and maintaining an online betting licence.

The amendments are also related to an increase in the one-time fees for maintaining a licence to organise gambling games, the amount of contributions for socially responsible behaviour, and fines and property sanctions.

Activities are also planned to expand the prevention of gambling addiction among individuals in the education system, including through the implementation of information campaigns, preventive programmes and the development of appropriate teaching materials, the government information service said.

The amendments introduce a new requirement, that a foreign legal entity organising online betting must have a place of business in Bulgaria.

“This creates an additional mechanism for tracking financial flows, helping to detect discrepancies between the declared activity, the amount of bets, the paid out winnings, the income and expenses, and the corporate tax due,” the statement said.

A mandatory cash contribution is also introduced for payment institutions, banks and electronic money companies that carry out payment transactions related to participation in gambling games and the payment of winnings.

The bill also proposes a complete ban on cash payments between construction companies, contractors and subcontractors under contracts, construction activities, supplies of materials and provision of services.

It is envisaged that payments will be made by bank transfer or through other traceable electronic payment instruments.

“The measure will contribute to limiting the shadow economy, increasing financial discipline and creating a level playing field for construction companies that comply with the legislation,” the statement said.

(Photo: Daniel Alther/ freeimages.com)

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