Proposed amendments to Bulgaria’s Gambling Act advanced by the government of Rumen Radev threaten to shake up the domestic market by squeezing smaller operators out of the online betting sector. Prime Minister Rumen Radev announced the legislative changes on Wednesday, highlighting a total ban on gambling advertisements. However, statements from Deputy Finance Minister Lyudmila Petkova revealed that major fiscal modifications targeting online gambling taxation are also on the table, raising questions about whether state policy aims to shrink the market or concentrate it among a handful of dominant players.
Minimum Monthly Tax Threatens Small Operators
The Ministry of Finance has introduced a mandatory minimum monthly gambling fee for every licensed online operator, regardless of actual revenue or company size. Under the current framework, online gambling is subject to a two-component system comprising a one-off license issuance fee of 400,000 levs—slated to convert to 400,000 euros—and a variable fee of 20% on the difference between bets placed and winnings paid, which officials plan to increase to 22% by 2028. The newly proposed rule would mandate a minimum variable tax contribution of at least 100,000 euros per month starting January 1, 2027.
Industry experts consulted by Mediapool noted that roughly half of all licensed online operators currently remit less than that monthly threshold. A finance specialist interviewed by the outlet criticized the policy mechanics, comparing it to a flat mandate where the state collects a 10% profit tax but forces every grocery business—from a tiny neighborhood shop to a major supermarket chain—to pay a minimum of 100,000 euros tax per month.
Ministry Defends Predictability While Experts Warn of Inequality
Ministry of Finance officials defended the tax floor by arguing it will guarantee steady public revenues and curb revenue fluctuations driven by market turnover. According to official motives published by the ministry, setting a minimum payment creates greater predictability and sustainability for the state budget while establishing a clearer link between the state-granted operating license and an operator’s baseline public contribution. The ministry stated the measure aims to foster a more level playing field across the industry.
Market experts dispute that reasoning, telling Mediapool that the fixed taxation structure will produce the exact opposite effect by entrenching inequality. Rather than leveling the market, the guaranteed minimum contributions risk driving out independent and smaller digital platforms, effectively consolidating the “games of fortune” sector into the hands of deep-pocketed conglomerates.
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