Bulgaria’s Rejection of Gambling Act Amendments

At the end of 2023, Kostadin Kostadinov, leader of the Bulgarian nationalist party Revival (Bulgarian: ‘Vazrazhdane’), drafted a proposal to amend certain aspects of Bulgaria’s current Gambling Law. The proposal aimed to address concerns regarding gambling advertising and the protection of vulnerable individuals. However, the proposal faced challenges, with the relevant committees failing to consider it for further discussion.

The proposed amendments covered several key areas within the Gambling Law. One significant change focused on the overhaul of advertising rules to combat the perceived excessive presence of gambling advertisements, particularly on TV, radio, and other electronic media. Revival argued that these advertisements often reached minors and vulnerable individuals, contravening existing regulations.

Another proposed change aimed to optimize the efficiency of the national self-exclusion registry, a tool designed to help individuals with gambling problems exclude themselves from participating in gambling activities. Revival suggested a minimum time frame of two years before a player could remove themselves from the self-exclusion list, addressing concerns about the lack of centralization and the ease with which banned individuals could access other gambling venues.

Furthermore, Revival sought to increase the maximum payout for land-based wins from 5000 levs (£2.2k) to 10000 levs, promoting immediate access to winnings and discouraging repeated visits to banks for fund transfers. The party also advocated for changes to the licensing tax and gambling levy, proposing the elimination of licensing fees for gambling operators and replacing them with a 15% tax levy on all deposits made. This change aimed to align the tax structure with pre-2014 regulations and include land-based casinos, which were previously excluded.

Revival’s proposal was driven by concerns over the impact of gambling advertisements on vulnerable individuals and the need for a more effective self-exclusion system. Clement Shopov of Revival highlighted the industry’s use of advertisements not only to attract new customers but also to maintain the interest of those susceptible to gambling harm. Shopov argued that stricter advertising restrictions, similar to those in the Netherlands, Belgium, and Italy, should be implemented to protect vulnerable individuals.

Regarding changes to withdrawals, Shopov emphasized the importance of providing customers with instant access to their winnings at land-based casinos. This approach aimed to discourage customers from returning to casinos due to delays in fund transfers by banks. Additionally, Shopov proposed a shift from licensing fees to a tax levy on deposits, similar to the pre-2014 framework. The inclusion of land-based casinos in this tax structure revision was seen as a means to generate additional revenue for the treasury.

Media influence and conflict of interest were significant talking points during the plenary session. Dimo Drenchev, a member of Revival, criticized Bulgarian media companies for their heavy reliance on gambling advertisements, which accounted for 50% of their income. Drenchev described the media environment as “toxic” and argued that the media’s addiction to gambling companies compromised its objectivity.

These concerns were echoed by Sonya Momchilova, Chairwoman of Bulgaria’s Electronic Media Council (EMC), during a parliamentary hearing. Momchilova emphasized the need for stricter control over gambling ads, either through a blanket ban or specific time restrictions. She suggested that the responsibility for regulating gambling advertisements should lie with the National Revenue Agency (NRA) under the Gambling Act.

During the plenary session, a populist minority voted in favour of the proposed amendments, while the political majority chose to abstain. As a result, the amendments were rejected, and the proposed legislation did not move forward. However, with early elections anticipated in June, the future of Bulgaria’s gambling sector remains uncertain, as further developments and debates are expected.