Bulgaria Rejects Gambling Tax and Ad Ban Proposals
Highlights
Bulgarian lawmakers deny opposition gambling ad ban and tax hike proposals.
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Mark Chakravati said the advertising ban would reduce the revenue of Bulgarian operators.
Bulgaria’s government has disapproved of the opposition proposal to raise the gambling tax and introduce tighter restrictions on gambling advertisement despite admitting that effectively only 60% of the entire market is being channeled in the country.
The parliamentary debate on growing concerns about illegal gambling was held earlier this week. It also included the proposed amendments to the current gambling regulations.
Legislative members have passed the minor additional taxation tied to a specific niche but have denied calls for a near-doubling of operators’ fees and an advertising ban.
Currently, 25% of GGR is the online gambling tax in Bulgaria, alongside a corporate tax of 10%. It was a 20% increase from last year.
Deputy Finance Minister Lyudmila Petkova argues that increasing the tax would invariably drive more players towards illegal platforms.
She stressed that although a higher gambling tax may seem advantageous, it could drive players from the regulated market to the illegal sector unless the grey market is effectively addressed first.
Opposition parties “We Continue the Change” and “Democratic Bulgaria” criticised the government’s lenient approach to gambling promotion and its inadequate enforcement against illegal operators.
A well-recognised opposition MP, Venko Sabutev, has been vocal about stricter controls and expressed disappointment as the efforts to amend the Gambling Act through transitional provisions in the parliamentary process go in vain.
On 30 April 2024, Bulgaria unanimously banned gambling advertising across television, radio, print, and digital media, with limited exemptions for the Bulgarian Sports Totalisator.
The new measures continue to allow billboard advertising, but only when it is placed at least 300 metres away from schools, universities, playgrounds, and other protected locations. At least 10% of the advertising space must also be reserved for gambling harm warnings.
Mark Chakravarti, investments director at local operator Sportingwin, states that the advertising ban has led to a sharp decrease in revenue for Bulgarian operators.
For more information, Refer Here!
The parliamentary debate on growing concerns about illegal gambling was held earlier this week. It also included the proposed amendments to the current gambling regulations.
Legislative members have passed the minor additional taxation tied to a specific niche but have denied calls for a near-doubling of operators’ fees and an advertising ban.
Currently, 25% of GGR is the online gambling tax in Bulgaria, alongside a corporate tax of 10%. It was a 20% increase from last year.
Deputy Finance Minister Lyudmila Petkova argues that increasing the tax would invariably drive more players towards illegal platforms.
She stressed that although a higher gambling tax may seem advantageous, it could drive players from the regulated market to the illegal sector unless the grey market is effectively addressed first.
Opposition parties “We Continue the Change” and “Democratic Bulgaria” criticised the government’s lenient approach to gambling promotion and its inadequate enforcement against illegal operators.
A well-recognised opposition MP, Venko Sabutev, has been vocal about stricter controls and expressed disappointment as the efforts to amend the Gambling Act through transitional provisions in the parliamentary process go in vain.
On 30 April 2024, Bulgaria unanimously banned gambling advertising across television, radio, print, and digital media, with limited exemptions for the Bulgarian Sports Totalisator.
The new measures continue to allow billboard advertising, but only when it is placed at least 300 metres away from schools, universities, playgrounds, and other protected locations. At least 10% of the advertising space must also be reserved for gambling harm warnings.
Mark Chakravarti, investments director at local operator Sportingwin, states that the advertising ban has led to a sharp decrease in revenue for Bulgarian operators.
For more information, Refer Here!
