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The tax increase was approved as part of Bulgaria’s national budget and will apply to all licensed gambling operators, including sports betting, lotteries, random event wagering, and online gambling providers. The 25% levy positions Bulgaria among the more heavily taxed jurisdictions in Central and Eastern Europe, though the rate remains moderate compared to some Western European markets.
Rising Tax Trend Across European Markets
Bulgaria’s decision follows a pattern of gambling tax increases across the European Union, where governments are adjusting tax regimes to generate additional public revenues. Romania increased its online gambling GGR tax from 21% to 27% in mid-2024, while the Netherlands has approved a rate increase to 37.8% effective January 2026.
The policy shift reflects growing interest among European governments in gambling taxation as a revenue source, particularly as economies manage post-pandemic debt levels and inflation-related spending pressures.
Bulgaria’s budget did not specify any designated purpose for the additional tax income. Unlike some EU countries that allocate gambling tax revenue toward social programs or responsible gaming initiatives, the Bulgarian measure appears designed primarily to strengthen general state revenues.
Modest Revenue Impact, Operational Concerns for Industry
The 5% rate increase is expected to generate limited fiscal gains relative to Bulgaria’s overall budget deficit. According to market data from analyst firm Yield Sec, regulated online gambling providers in Bulgaria generated approximately €562 million in GGR in 2023. Combined with estimated land-based casino and betting shop revenues, total GGR is projected at approximately €1.1 billion.
Under the previous 20% tax rate, gambling operations generated approximately €225 million in tax revenue. The new 25% rate is projected to increase annual tax collection to €281 million, representing an additional €56 million—approximately 1.4% of the national deficit.
The operational impact on gambling operators may be more significant. Bulgaria’s GGR tax applies to gross revenue before expenses such as staff wages, marketing costs, and platform fees are deducted. This structure means rate increases directly affect operator profitability and investment capacity.
Industry analysts note that operators may respond by reducing player bonuses, limiting marketing campaigns, or delaying market entry plans. Such adjustments could affect consumer engagement levels and potentially reduce overall gambling turnover, which could paradoxically impact total tax revenues—a pattern observed in the Netherlands following recent tax rate increases.
Source: iGamingToday
