Bulgaria Introduces New Tax for Gambling Affiliates Amid Regulatory Review

The Bulgarian government is moving forward with plans to introduce a new tax on gambling affiliates. This initiative is part of a broader overhaul of the country's gambling sector. Heated discussions about new advertising regulations are also ongoing, adding further pressure to the industry.

Currently, 15 licensed operators are active in Bulgaria. These include major local players like Efbet, Winbet, and Palmsbet, as well as international brands such as Bet365 and Bwin. Newer market entrants like Sportingwin and Betmarket are also participating.

Numbers and facts

Bulgaria is actively pursuing policies to increase state revenues from gambling. A significant step was the increase in the Gross Gaming Revenue (GGR) tax from 20 percent to 25 percent. This change took effect in January 2026. The Bulgarian Finance Minister expected tax revenues of BGN 200 million from the gambling industry for 2024.

The GGR tax increase affects operators of sports betting, lotteries, online gambling, and other random event betting activities. This measure aims to curb the widening fiscal deficit of approximately 3.86 billion euros (4.48 billion dollars). However, analysts doubt that the fiscal impact will be significant. Estimates from Yield Sec show that regulated online gambling providers in Bulgaria generated approximately 562 million euros (652 million dollars) in GGR in 2023. The total revenue of the industry, including the land-based sector, is estimated at around 1.1 billion euros (1.28 billion dollars).

Under the old tax rate of 20 percent, the government would have collected about 225 million euros (261 million dollars). With the new 25 percent rate, approximately 281 million euros (326 million dollars) are expected annually. This represents an additional gain of 56 million euros (65 million dollars), but accounts for only 1.4 percent of the current budget deficit.

The government has not yet announced any plans to invest these additional revenues in industry-specific programs such as responsible gaming or player protection. Instead, the funds are intended for general budget consolidation for 2026.

Background

The planned changes in Bulgaria illustrate a clear trend in Europe. Several countries have implemented similar tax increases in recent months. Romania raised its online gambling GGR tax from 21 percent to 27 percent in July 2025. The Netherlands also plans to increase its rate to 37.8 percent from January 2026. Such regulations often lead to increased pressure on operator margins and affect marketing strategies.

The GGR tax in Bulgaria is levied on gross revenue without deductions for marketing, payroll, or operational costs. This means the increase directly cuts into companies' profit margins. Industry observers fear that operators may respond by reducing promotional offers, cutting marketing expenditure, or delaying expansion plans. This uncertainty could also deter new investments in Bulgaria's gaming sector and affect long-term competitiveness.

The regulatory wave in Bulgaria also impacts advertising. Online media and broadcast advertising for gambling are now prohibited. Only billboard advertising remains permissible. Patrick Sullivan, an attorney at Dickinson Wright, commented on the state of gambling legislation:

“Some countries frequently adjust their laws to align with current trends and demands. This is a natural development in a rapidly evolving market like gambling.” - Patrick Sullivan, Attorney at Dickinson Wright

Why it matters for German players

For German players, these specific Bulgarian regulations do not directly affect their playing behavior in Germany. The German gambling market is strictly regulated by the Gambling State Treaty 2021 (GlüStV 2021). The Joint Gambling Authority of the Federal States (GGL) is the central supervisory authority ensuring compliance with these requirements.

It is important for German players to play exclusively with providers on the GGL whitelist. Only these casinos meet the legal standards that guarantee player protection. This includes a stake limit of 1 euro per spin on slot machines and a monthly deposit limit of 1,000 euros, controlled via the central surveillance system LUGAS. Players benefit from a high level of security and trustworthiness. Providers without a German license, often from Curaçao or Malta, do not offer these protective mechanisms and are therefore not recommended for German players. The GGL's focus is clearly on channeling players into the legal market and consistently taking action against illegal providers.

What it means for GGL-licensed casinos

The situation in Bulgaria is an example of how quickly regulatory frameworks in gambling can change. For GGL-licensed casinos, this means constant adaptation to strict German requirements. While Bulgarian operators contend with tax increases and advertising bans, German providers must balance high player protection with economic attractiveness.

The GGL maintains a zero-tolerance policy towards violations. This includes consistent action against unauthorized gambling and the monitoring of advertising measures. German regulations are designed to create a safe and responsible gaming environment, which clearly differs from the purely fiscally motivated changes in Bulgaria. The German approach is complex but ensures that players are optimally protected and the market remains stable in the long term.