Rules and Regulations for Online Gambling Operators in Bulgaria

Online gaming in Bulgaria is regulated by the country's Gambling Act, which has undergone a series of amendments to address the complexity of iGaming. Regulation is strong and extant, with oversight provided by the National Revenue Agency (NRA), and requiring all operators to uphold high standards of fairness, integrity, and social responsibility. This has rendered Bulgaria a more appealing destination for both local and foreign operators of real money casino games and other forms of online betting.

Licensing Requirements

Operators must be licensed by the NRA for it to be legal for them to offer online gambling games and services in Bulgaria. The licensing process is strict and involves submitting proof of financial standing, technical competence, and a clean criminal record. Gambling software is also subject to strict testing for compliance with fair play standards.

Tax Obligations

Other than a licence fee payable in general, there are also negotiable and onerous financial commitments in the form of a gambling tax of 20% on the difference between the total amount of bets received and winnings paid out.

Advertising and Marketing Regulations

Advertising and promotion of gambling services are strictly regulated in Bulgaria. Advertisements must not be directed at minors or suggest that gambling can be a solution to personal problems. All advertisements must contain messages highlighting the risks of gambling addiction.

Bulgaria also set to ban virtually all forms of gambling advertising on television, radio, print media, and websites but online. This followed the unanimous approval by the Bulgarian parliament, and the law is waiting to be signed into force following presidential assent.

Player Protection Measures

Operators shall provide robust player protection measures, including but not limited to self-exclusion, betting limits, and warning notices of the risks associated with gambling. Age verification systems will be required to ensure that all players are legally old enough to gamble.

Compliance with National Legislation

Offshore internet gambling providers are also subject to general national legislation, in particular that concerning advertising, consumer protection, data protection and anti-money laundering and counter-terrorist financing framework.

Other Issues

Although Bulgarian players are not prohibited from accessing international offshore gambling sites, Bulgarian internet service providers actively block access to unlicensed iGaming providers.

Gambling Taxes and Fees

The Bulgarian government has tried to establish a well-structured system of gambling licensing and taxation. The law on gambling is meant to reduce the threshold for entry for licensed operators, make a reasonable contribution to the state budget, and finance projects such as problem gambling prevention.

The cost of obtaining a Bulgarian gambling license is not predetermined but depends on numerous parameters, such as the kind of gambling activity to be carried out. For an online gambling license, the cost can range from €5,000 to €20,000 for a standard license duration.

The operators are now charged a one-off state license fee of BGN 400,000 (approximately €204,500) and a monthly fee of 20% of the difference between accepted winnings and paid-out bets.

The managers of the gambling games are also required to contribute annually to socially responsible activities for each license they possess. For online betting, this is BGN 50,000 (about €25,600), payable on 31 March. New license holders must pay the annual fee within 30 days of being issued the license. Late payment is liable to interest according to legislations.

Governing Institutions

Bulgaria, as an EU member state, has its own full competence to regulate gambling law. Three institutions, in general, supervise the regulatory framework:

Ministry of Finance

The Ministry of Finance is an important institution in the gambling industry by bridging fiscal policy and regulatory guidance. The ministry works together with other government ministries in developing legislation that regulates the financial aspects of gambling, such as taxation and financial compliance. The ministry manages the reception of revenue from gambling into the country's national budget while encouraging responsible gambling.

National Revenue Agency (NRA)

Stepping in for the lobbyists of the disbanded State Gambling Commission, the NRA is responsible for the implementation of gambling laws in Bulgaria. It regulates licensing, conformity to legal norms, and taxation of the gambling. The agency's activity plays a crucial role in the defense of industry integrity, consumer rights, and the provision of fair and transparent business practices.

Anti-Money Laundering Division

The AML department, as a sector within the NRA, was established with a vision of being compliant with EU requirements in monitoring financial transactions. It oversees the gambling sector in relation to preventing and detecting money laundering and terrorist financing. The department guarantees compliance with the law by operators and detects suspicious transactions. Its role is central to maintaining the integrity and transparency of Bulgaria's iGaming sector and protecting it against financial crime.