Bulgaria is considering transferring the organisation of the national lottery Sport Toto (ST) to a private company under a 15-year concession.

The bill was introduced by two of the three parties in the ruling coalition – GERB and BSP – with external support from the DPS–New Beginning party. The proposal was put forward ahead of the adoption of the 2026 budget, which, although not directly related to the lottery, includes an increase in gambling taxes.

The draft law stipulates that the national monopoly on lottery games will be transferred to a private company – local or international, registered in Bulgaria – for at least 15 years.

Concession contracts will be issued by the Director General of the National Revenue Agency (NRA). Once the contract comes into force, the licence holder will receive full control over ST’s lottery games in Bulgaria, as well as access to all ST retail locations, internal systems and intellectual property.

Ten percent of the lottery’s annual corporate tax will be allocated to the Ministry of Youth and Sport for the development of social initiatives, while 30% of lottery revenue will be directed toward supporting clubs and organisations within the sports sector.

One of the key arguments for the initiative is the claim that ST lacks the necessary financial resources and market expertise to compete with the online gaming sector. It is argued that the operator is failing to attract players to lottery games and cannot adequately support Bulgaria’s sports sector.

Until 2020, private lottery operators were active in Bulgaria, but during GERB’s previous mandate a law was passed that cemented ST’s monopoly status. The party now argues that ST has failed to defend its monopoly, as it generates less revenue than the former private operators.

The authors of the bill noted that granting a monopoly company under concession complies with EU legislation. They referenced the ItalyLotto concession and Germany’s federal model, which allows lottery operations to be leased. Also highlighted were the current 12-year concession of Greece’s Hellenic Lotteries and the transfer of Malta’s national lottery to National Lottery PLC in 2021.

ST’s total revenue for 2024 amounted to 427 million leva (£191.2 million), a 5.9% year-on-year increase. While this volume may attract international operators, it should be noted that the country will officially adopt the euro at the beginning of next year.

If the bill is adopted, the Ministry of Youth and Sport will have until 31 March 2026 to assess the potential interest and benefits of such an initiative.

Source

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