When clocks hit twelve o’clock on New Year’s Eve, we ended a landmark year for the European gambling sector characterised by key regulatory developments across a number of member states.
One of those countries that stepped under the spotlight in 2024 was Bulgaria with the overhaul of its Gambling Act, marking a new chapter for the nation’s gambling sector and regional stakeholders.
In a two-part feature, SBC News looks to offer readers a magnified view into what this chapter could mean for the Bulgarian market, as well as all the work by the National Revenue Agency (NRA) that has led up to this moment in time.
The following part one sets the stage by introducing the current set-up of the local market, and reviewing the recent regulatory changes – with exclusive commentary from Rumen Spetsov, the Director General of the NRA.
Rumen Spetsov
Can you give us a brief overview of the gambling industry in Bulgaria? How does it compare to the rest of Europe?
The gambling industry in Bulgaria is in a development stage, with online platforms enjoying a growing popularity, but in a European context it is still small. In size it is smaller than that of major European markets such as the UK, Germany and France. However, regulation is strict, which aims to ensure the safety and protection of players.
Bulgaria offers a variety of gambling options, including casino games, sports betting, and games of chance like lotteries. The gambling market in Bulgaria is relatively small, but the interest in it is growing. There are many physical casinos, sports bars and online platforms.
Online gambling in particular is becoming increasingly popular, especially after the pandemic. Many companies offer services with licenses, which ensures a safe gaming environment. The state collects significant revenues from gambling, mainly through taxes and fees from licensed operators.
From your perspective, what are the most pressing issues in the Bulgarian gambling sector that need to be addressed?
There are several pressing issues in the Bulgarian gambling sector that need to be addressed in order to ensure sustainable development and a safe environment for players:
Frequent changes in legislation create uncertainty for operators and investors. A stable and predictable regulatory environment is needed to encourage investment and innovation.
The increasing attention to gambling problems and addictions requires adequate measures to protect vulnerable groups. It is important to develop prevention and assistance programs.
Illegal gambling remains a significant problem. Increasing control and inspections of unlicensed operators is essential to protect legal businesses.
The new advertising rules are causing difficulties for operators. Better communication between regulators and the industry is needed to ensure clarity and understanding of the rules.
As technology advances, operators must adapt to new trends in online gambling and data security. Regulators must keep up with the pace of innovation to ensure a safe environment. Raising public awareness about risks and responsible gaming is necessary. Educational campaigns can help players make informed decisions.
How is the gambling sector in Bulgaria structured in terms of financing social initiatives? Is there room for improvement?
In Bulgaria, the gambling sector has a certain role in financing social initiatives, but there are opportunities for improvement in this regard.
Current structure:
Areas for improvement:
It has been eight months since the entry into force of the updated Gambling Act. Has it brought more stability or more chaos to the market?
The entry into force of the updated Gambling Act has caused mixed reactions in the market. On the one hand, the new regulations aim to increase transparency and reduce the black market, which could bring more stability. Licensed businesses receive clear rules, which is positive for investors.
On the other hand, however, some operators express concerns about the complexity of the new requirements and the potential financial burdens associated with them. This could lead to chaos in the short term, especially for smaller players who have difficulty adapting.
In summary, the legislation has the potential to bring stability, but the transition period is challenging and may cause uncertainty at the beginning.
Are the new advertising rules understood by the sector?
The new advertising rules in the gambling sector in Bulgaria have caused mixed reactions among operators. Although the main aim of the rules is to protect the public and reduce the promotion of gambling, some operators and specialists have expressed concerns about the complexity of the requirements.
Some operators believe that the rules are not clear enough and there is a risk of misunderstanding the specific requirements. Some companies say that implementing the new rules requires significant resources and adaptations in marketing strategies.
The rules aim to prevent abuse and protect vulnerable groups from unwanted influences, which is important for the public perception of gambling.
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