New Bulgarian Budget Targets 25% Gambling Tax Rate
Bulgaria’s draft medium-term budget unveiled plans to raise the country’s gambling tax to 25% from 20%, a change scheduled to take effect on January 1, 2026.
LISTEN TO THIS ARTICLE:The finance ministry’s forecast for 2026-2028 outlines amendments to the national Gambling Act that would lift the effective tax rate applied across multiple verticals, including online gaming (iGaming), lotteries, bingo, raffles, toto and keno. Officials estimate the higher levy would deliver roughly $37 million in additional annual revenue, earmarked for a mix of social and economic programmes.
Under the current regulatory framework, operators pay a one-off licence fee of BGN 300,000 and a recurring tax set at 20% of the industry’s taxable margin – effectively a charge on gross gaming revenue after prize payouts. The draft proposes a blanket move to 25%, narrowing the gap to earlier, more aggressive proposals that sought a 30% rate but were rejected during initial policy discussions.
Industry response has been swift. Local and international operators warn that the measure may compress margins at a time when operators are already adapting to tighter compliance requirements and rising operating costs. Ivan Dimitrov, CEO of a Sofia-based sports-betting operator, said: "A 25% tax will materially reduce the profitability of licensed operators in Bulgaria. We are concerned that higher tax rates, without parallel measures to improve the business environment, will drive activity into unregulated channels and harm consumers."
Proponents within government argue the revision is proportionate and necessary. A spokesperson for the Ministry of Finance said the adjustment reflects updated fiscal priorities and that the projected receipts will strengthen public services. The ministry’s modelling – circulated with the budget draft – shows the new rate increases state revenue while preserving the current licensing regime.
Related: Bulgaria Debates Ban on Social Media for Minors Under 15 Amid Mental Health Concerns
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How Operators and Lawmakers Are Responding
Should the amendment clear parliament later this year, operators would face the new charge from the start of 2026. The legislative timetable gives MPs several months to debate the changes, and any final vote could include further technical adjustments around exemptions, reporting timelines and treatment of promotional stakes.
Policy observers point to parallel debates in other markets. The UK government and regulatory bodies, including HM Treasury and the Gambling Commission, have been discussing tax recalibrations in recent months, prompting similar industry pushback about market distortion and the growth of illegal wagering. Maria Petrova, a senior analyst at Sofia research group Balkan Insights, warned: "Higher tax rates across Europe raise the real risk of creating arbitrage for black-market operators who are not burdened by licensing or consumer-protection costs. Effective enforcement and proportional taxation need to go hand in hand to avoid this outcome."
Beyond fiscal measures, Bulgarian lawmakers have also revisited youth protection policies. Parliamentary Health Committee chair Kostadin Angelov has publicly likened the risks of excessive social-media use among under-15s to behavioural harms associated with gambling, suggesting stricter online-age controls could form part of wider public-health legislation in the coming parliamentary session.
As the debate moves to the legislatures and stakeholder consultations, operators and industry associations are expected to submit impact assessments and lobby for transitional arrangements. Observers say the ultimate form of the law will depend on political negotiations and any concessions the Ministry of Finance may offer on compliance timelines or sector-specific reliefs.
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