Bulgaria, officially the Republic of Bulgaria, is a small Eastern European country where gambling has grown exponentially in popularity over the last few years. Gambling has been legal in the country since 1957, but it took several decades to properly regulate the industry.
Today, both land-based and online forms of gambling are legal in Bulgaria, and operators that wish to offer casino games or sports betting must obtain a license. As online gambling gains popularity, the industry continues to expand and has become a favorite pastime of Bulgarian men and women.
Because Bulgaria is a member of the EU, its legislative system complies with most laws enacted by the union, especially those concerning the freedom of establishment and freedom to provide services. In addition to EU regulations, Bulgaria has adopted several domestic laws that govern gambling businesses and how they must operate.
To protect players and ensure a safer gambling environment, the Bulgarian government takes additional measures to prevent unlicensed gambling. Online operators not authorized by Bulgarian authorities are often blacklisted, and access to foreign unlicensed sites is frequently blocked.
History of Gambling in Bulgaria
Throughout the 19th century, gambling was illegal in Bulgaria because the government was unable to cope with rapidly growing gambling-related debts. After gambling was prohibited at the end of the century, the only form of gambling allowed in Bulgaria was the state cash and goods lottery.
Despite the ban, gambling continued in the country. Playing cards, backgammon, and barbooth remained popular until the mid-20th century, and slot machines could be found in some restaurants, reinforcing the idea that gambling was still accessible.
The shift toward legal gambling began in 1957 with the establishment of Sports Toto. During the 1970s, casinos, gambling halls, and lottery games became more accessible. Although gambling became more common toward the end of the 20th century, the industry remained largely unregulated.
The first bill to introduce meaningful gambling regulations was proposed in 1993, during Bulgaria’s democratization, when the legislative system underwent significant changes. The first Gaming Law was enacted in 1998, and a decade later online gambling was legalized.
The gambling scene in Bulgaria still has shortcomings, many of which stem from its history of unlawful gambling. However, the current regulations aim to provide a safer environment for both land-based and online players.
Gambling Regulations in Bulgaria
As noted above, legal gambling operations in Bulgaria began in 1957 with the launch of Sports Toto. Although casino games, gaming halls, and lotteries quickly became popular, none of them were properly regulated until the 1990s. Bulgaria first moved toward regulation in 1993, when the government introduced its initial gambling framework. Ordinance On The Terms And Conditions For Issuance Of Permits For Organization Of Gambling Games was enacted that year, permitting the operation of the state lottery, casinos, and bingo halls.
The first Gaming Law in Bulgaria was passed in 1998, five years after the ordinance. Since then, the law has been amended several times to reflect the evolving gambling market. Today, the industry is regulated by the Gambling Law, last amended in 2012. Under that law, gambling is defined as any game of chance played with a stake that can be lost or won.
With the enactment of the Gambling Law, the country established clearer rules for casinos and gambling halls. The statute also created a licensing system, a regulatory body, and defined that body’s responsibilities. It introduced new gambling taxes and updated requirements for gaming equipment. Before 1998, restrictions limited the maximum payouts, but these caps were removed by the new law.
According to the Gambling Law, organizations that offer online gambling without a license face fines between BGN 1 million and BGN 2 million. If an organization operates a land-based gambling facility without a proper license, the fine ranges from BGN 50,000 to BGN 200,000. Individuals who illegally manufacture, import, distribute, or repair gaming equipment face fines of BGN 20,000 to BGN 50,000. When such activities are carried out by an unlicensed organization, the penalty increases to between BGN 50,000 and BGN 200,000.
Under the Gambling Law, the minimum legal gambling age in Bulgaria is 18. Bulgarian gambling legislation aims to ensure a safe gaming environment. Following the 2012 amendment, the country has maintained a solid regulatory system that has operated successfully for a decade. Moreover, as an EU member, Bulgaria complies with the union’s anti-money-laundering policy.
Land-Based Gambling in Bulgaria
Other Forms of Legal Gambling in Bulgaria
Online Gambling in BulgariaGambling Regulator and Gambling Licenses in Bulgaria
The gambling industry in Bulgaria was previously regulated by the State Commission on Gambling, which was also responsible for issuing licenses to operators. In 2020, however, the commission’s chairman, Alexander Georgiev, and Vasil Bozhkov, the owner of some of the country’s largest casinos, slot halls, and online casinos, were involved in a corruption scandal.
Because the commission’s integrity was compromised, the Bulgarian government dissolved it and transferred its responsibilities to the National Revenue Agency. This change was introduced by the latest amendment to the Gambling Law in August 2020. The agency now regulates the entire gambling industry, and issuing or revoking licenses falls under its remit. The National Revenue Agency also issues online casino licenses, and detailed information on licensing requirements can be found on its official website.
To apply for a gambling license in Bulgaria, operators must meet the following conditions:
- While the applicant company does not need to be based in Bulgaria, it must be established in an EU member state
- The required capital to apply for a gambling license in Bulgaria is BGN 1.5 million (approximately $1 million, €780,000)
- The company applying for a license must not have breached any rules imposed by the Gambling Law
- Only casino operators with servers physically located in an EU country may apply for a license
- The company’s bank accounts must be held with EU banks that also operate in Bulgaria
- The casino’s central computer systems must be connected to National Revenue Agency servers so the regulator can receive real-time information on wagers, games in play, and prizes paid
- The National Revenue Agency must also approve the gaming software used by the operator, as well as any updates to that software
- After a gaming license is issued, the operator must invest BGN 1 million (approximately €511,000) within the next six months
- The National Revenue Agency must be informed of the sources of the funds to be invested
Additional requirements are detailed on the regulator’s official website, available in Bulgarian and English. The license fee ranges from €5,000 to €50,000, depending on the type of service provided.
Gambling Related Tax in Bulgaria
While players are not required to pay tax on their gambling winnings, operators must pay taxes and additional fees. Gambling activities are taxed under Articles 219-247 of the Corporate Income Tax Act. A gambling tax is levied on operators that offer games requiring players to place wagers via mobile devices or other electronic communication devices. In such cases, the tax rate is 15% of the amount paid through the device.
Gambling taxes also apply to slot machines and other casino games offered at land-based facilities. The rate varies depending on the type of game and whether it is offered in a brick-and-mortar casino or a gaming hall. In addition to the 15% tax, certain games incur a quarterly fee. Facilities operating roulette tables must pay BGN 22,000 per table, while other casino equipment carries a fee of BGN 5,000 per item. Gaming halls with slot machines must pay an additional BGN 500 per machine or terminal.
Online gaming operators pay a higher tax of 20%, levied on their gross gaming revenue.
Closing Thoughts
Although gambling was not properly regulated in Bulgaria until 2012, the country has since established an effective legislative system. All forms of gambling are now legal and regulated, and the government has introduced measures to ensure a safe and fair environment. The primary legislation regulating gambling in Bulgaria is the Gambling Law of 2012. To keep pace with the evolving industry, the law has been amended several times.
Under the Gambling Law, operators that wish to offer land-based gambling services must obtain a license from the National Revenue Agency. The agency also issues licenses to operators that want to provide online gaming and betting to Bulgarian players. In addition to licensing, the National Revenue Agency is also the authority regulating the gambling industry in the country.
Although the Bulgarian gambling sector has faced scandals, the government has taken measures to improve regulation. With the National Revenue Agency acting as the regulator and licensing body, the country aims to provide a safer and fairer industry for players and bettors.
Because online gambling is legal, more operators are entering the Bulgarian market. As players increasingly choose the convenience of online gaming and betting, this sector is expected to continue growing and, hopefully, contribute to the country’s economy.