Key Points
- PM Radev’s proposals restrict gambling advertising to sports kits and sports facilities only, closing channels that survived Bulgaria’s 2024 ban.
- All gaming equipment would connect to the National Revenue Agency in real time, replacing a flat machine rate with taxation on actual financial results.
- The same government that rejected a 30% tax hike in July now proposes an unspecified “substantial increase” without naming a rate.
What changes a government’s position so completely in two months? In July 2026, Bulgaria’s Finance Ministry warned parliament that higher gambling taxes could strengthen the black market. On 23 September, Prime Minister Rumen Radev proposed a substantial tax increase alongside a near-total advertising ban. Draft amendments to the Gambling Act entered public consultation that morning. Radev described the aim as “greater transparency, fairer taxation, and above all, curbing gambling addiction.”
Bulgaria Already Had One of Europe’s Toughest Frameworks
The campaign by the Bulgarian authorities to regulate gambling did not start in September. This was initiated in 2022 through the signing of an agreement between the NRA and the Bulgarian regulator of the media on regulating gambling advertisements. Warnings came up amid the increased advertising of gambling during the World Cup. In April 2024, the parliament voted unanimously for a total ban on gambling advertisements on television, radio, print media, and all websites. Billboards were only spared if they were 300 meters away from schools and safeguarded places. Advertisements in sports, social media, and casinos were not explicitly banned. Later, the NRA explained that the ban on digital ads applies to those platforms that meet the criteria of being electronic media according to Bulgarian broadcasting laws. This ensured that many advertising opportunities remained until 2026. Radev’s suggestions in September aim to end them completely.
One Exception Left: Sports Kits and Facilities
The draft amendments leave gambling operators with one advertising channel: sports kits and sports facilities only. Even illuminated signs on casino and gaming hall frontages would be prohibited. That detail extends Bulgaria’s restrictions beyond what most European jurisdictions have attempted. Radev said the aim is removing gambling from “the everyday life of Bulgarian citizens.” Children and young people were specifically cited as the population the measures most intend to protect.
Italy’s 2018 Dignity Decree banned all gambling advertising including sports sponsorships from 2019, with no exceptions. Bulgaria’s proposal stops short of that standard, since sports kit and facility advertising survives. That exception is narrow, and it is where the consultation’s most intense lobbying will concentrate.
Progressive Bulgaria holds 131 of the National Assembly’s 240 seats, giving the government the arithmetic to pass its preferred text. Whether that text survives consultation unchanged is a separate question. Both We Continue the Change and Democratic Bulgaria have called for stricter restrictions than what Radev has now proposed. Days before the announcement, a coalition MP reportedly predicted the measures would not reach a full ban.
The Tax Overhaul and What It Does Not Yet Say
According to the Gambling Act, online operators will pay 20% of stake less winnings, and a one-off BGN 400,000 licence fee. Trade reports refer to a 25% rate after budget discussions in early 2026. This figure does not fit with the present version of the Act published. According to Radev’s proposals in September, there was a “substantial increase” in the rate, but no rate has been stated. The increased revenue will be partially allocated to sport and education.
In July, opposition parties demanded increasing the rate to 30%. This proposal has been turned down by the Finance Ministry as this might lead to weakening of the licensed companies in competition with unlicensed operators. This argument has not been mentioned in Radev’s September statement. Now he offers to increase the rate without stating the amount of the increase.
For land-based venues, the proposed changes run deeper than a rate adjustment. Casinos and gaming halls currently pay a fixed rate per machine or table regardless of revenue volumes. That structure creates limited visibility on money flows, which the government identifies as an anti-money laundering vulnerability. Under the proposals, taxation would be calculated on actual financial results instead. All gaming equipment would also be required to connect to the National Revenue Agency in real time. Radev described that connectivity requirement as “something that should have been done long ago.”
Gambling Reforms and the Customs Question
The September 23 cabinet meeting advanced a separate proposal on customs enforcement, announced alongside but distinct from the gambling reforms. Under that measure, customs violations involving goods crossing EU external borders would be reclassified from administrative to criminal offences. Radev linked the customs measure directly to organised crime at EU borders, saying the proposals “strike deep into one of organised crime’s most lucrative sectors: the movement of goods across the EU’s external borders to the detriment of European and national finances.”
On the gambling side, foreign licence holders would be required to register and declare all financial activity within Bulgaria when they earn revenue from Bulgarian players. On accountability for those operators, Radev’s statement left nothing open: “Whoever operates on the Bulgarian market and profits from it will report here, pay taxes here and be subject to full control by the Bulgarian state.”
Expert Analysis: The Rate That Was Not Named Is the One That Matters
This regulatory pattern deserves more scrutiny than the announcement has attracted. The government that rejected a 30% hike in July on channelisation grounds now proposes an unspecified increase two months later. Not naming the rate gives the government flexibility during consultation. But operators cannot model their exposure without it, and the July channelisation argument goes unanswered.
We think the deeper issue sits between the government’s July position and its September announcement. Deputy Finance Minister Petkova’s estimate that around 40% of Bulgaria’s gambling market operates illegally was not a footnote in July. It was the central argument against a tax increase, and it goes unaddressed in September’s proposals. Raising online taxes while restricting the advertising that licensed operators use to compete compounds the pressure on the legal market. Unlicensed competitors face no burden and could gain competitive ground as a result.
Our reading of this package is not that the intent is wrong. The transparency logic behind real-time NRA connectivity for gaming equipment is sound. Accountability measures targeting foreign licence holders address a documented enforcement gap. But channelisation deserves a direct answer in the consultation document, not just July speeches. Set the rate too high, and Radev delivers the outcome Petkova explicitly warned against in July.
The sports kit and facility carve-out is where operators, football clubs, and broadcasters will concentrate their efforts during the public consultation. Whether the government widens that exception under lobbying pressure will signal how firm this package actually is.