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What is the legal definition of gambling?
According to Article 2 of the Bulgarian Gambling Act, “Gambling is any game of chance where upon a bet is made and there may be either winning or a loss of the bet. A participant in a gambling is a person who has made a bet in order to participate in the game.” This definition encompasses a broad range of activities where the outcome is uncertain and depends on chance, and where a bet is placed by a participant.
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What legislation applies to gambling? Please provide a summary of the legal/regulatory framework.
The primary legislation governing gambling in Bulgaria is the Gambling Act. This Act regulates the conditions and procedures for organizing gambling, manufacturing, distribution, and servicing of gambling equipment, as well as the issuance, extension, revocation, and termination of licenses for these activities.
The legal and regulatory framework governing gambling activities in Bulgaria is quite comprehensive and involves multiple pieces of legislation and ordinances. Below is a summary:
Gambling Act: This is the cornerstone legislation that provides the legal definition of gambling, types of licenses, application procedures, and penalties for non-compliance. It also establishes the regulatory bodies responsible for overseeing gambling activities.
Ordinance on General Mandatory Rules: This ordinance outlines the mandatory rules for organizing work and financial control in gambling activities. It also specifies the mandatory accounting reporting forms for different types of gambling.
Ordinance on Registration and Identification: This focuses on the terms and conditions for registering and identifying participants in online betting. It also outlines how data should be stored and submitted to the National Revenue Agency.
Ordinance on Technical Requirements for Control Systems: This sets the general mandatory technical requirements for gambling control systems and gaming equipment.
Ordinance on Gaming Conditions and Rules: This provides the general mandatory gaming conditions and rules for the types of gambling for which licenses are issued.
Ordinance on Requirements for Gaming Software: This outlines the general technical and functional requirements for gaming software and communication equipment for online betting.
Ordinance on Requirements for Premises: This sets the general requirements for gaming halls, casinos, and betting points in terms of premises, minimum required area, and necessary technical control equipment.
Ordinance on Distance Measurement: This focuses on the rules, methods, and technical methods for distance measurement as per Art. 44 of the Gambling Act.
Ordinance on Required Documents for Licenses: This specifies the documents required for issuing licenses under the Gambling Act.
Ordinance on Laboratory Registration and Testing: This outlines the terms and conditions for registering laboratories for testing gaming equipment, software, and other related devices.
Ordinance No. H-4 of 11.02.2021: This pertains to the registers under the Gambling Act, detailing what needs to be entered, and how they are to be maintained.
Tariff for Fees: This outlines the fees that are collected under the Gambling Act for various services and licenses.
In summary, the Bulgarian Gambling legislation provides a comprehensive legal framework that governs the organization, licensing, and conduct of various types of gambling activities within the country.
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Which body/ies regulate gambling?
The body responsible for regulating gambling in Bulgaria is the National Revenue Agency. The Executive Director of the National Revenue Agency exercises state supervision over gambling and gambling-related activities. The agency’s functions include issuing, refusing to issue, terminating, and revoking licenses for organizing gambling. They also handle licenses for manufacturing, distribution, and servicing, as well as licenses for import, distribution, and servicing of gambling equipment. The National Revenue Agency also exercises control over the activities of gambling organizers, including conducting inspections and identifying websites via which gambling are organized by persons having no valid license under the Gambling Act.
The National Revenue Agency is tasked with maintaining various registers that are integral to the regulation and oversight of gambling activities in Bulgaria. Specifically, the agency keeps the following registers on its website:
Organisers of Gambling: This register contains information about entities that are authorized to organize gambling under the provisions of the Gambling Act.
Organisers of Activities of Manufacturing, Distribution, and Servicing: This register lists entities involved in the production, distribution, and servicing of gambling equipment, as well as those involved in import and distribution.
Issued Licenses: This includes information about licenses that have been issued, refused, terminated, revoked, or amended for organizing gambling and carrying out activities related to the production, distribution, and servicing of gambling equipment.
Laboratories: This register lists laboratories that are authorized to conduct tests on gambling equipment, jackpot systems, gambling software, and communication equipment intended for use within Bulgaria. These laboratories can be from Bulgaria, other EU Member States, other States signatories to the European Economic Area Agreement, or from the Swiss Confederation.
Decisions of the Executive Director: This register contains decisions made by the Executive Director of the National Revenue Agency concerning proceeds under the Gambling Act (Page 13).
These registers serve as a comprehensive database for regulatory oversight, ensuring transparency, accountability, and compliance with the legal framework governing gambling in Bulgaria.
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Are licences available? If so: a) What is the duration of a licence? b) What types of licences are available? c) Are there different types of licences for B2C and B2B operators? d) Do software suppliers need to be licensed?
a) What is the duration of a licence?
The term of validity for a gambling license varies depending on the type of gambling activity and the investment involved. Specifically:
General Duration: Licenses for one-off organizing are generally valid for a period of 5 years. However, the applicant can explicitly request a shorter term.
Extended Duration: Licenses for activities such as raffles, numbers lottery games, bingo, instant lottery, and gambling with slot machines can be issued for a term of 10 years. This is applicable only when the investments proven in advance before the National Revenue Agency exceed BGN 1,000,000.
Casino Licenses: For organizing gambling in a casino, a 10-year license can be issued if the investments exceed BGN 3,000,000.
Online Gambling and Other Electronic Means: A 10-year license can be issued if the funds for organizing the activity exceed BGN 2,000,000.
Manufacturing, Distribution, and Servicing of Gambling Equipment: A 10-year license can be issued if the funds for organizing the activity exceed BGN 1,200,000.
Import, Distribution, and Servicing of Gambling Equipment: A 10-year license can be issued if the funds for organizing the activity exceed BGN 400,000.
Shorter Term: If the applicant explicitly applies for a license for a shorter term, the above conditions for extended durations do not apply.
License Termination: A license shall be terminated upon the expiry of its term, among other conditions.
Extension: For extension of the term of an issued license, an organizer shall pay only the fee for issuance of a new license.
These durations and conditions are designed to ensure that only financially stable and committed organizations engage in gambling activities, thereby safeguarding the interests of the public and the state.
b. What types of licences are available?
Types of Licenses are:
Lotteries: This category includes conventional lotteries, instant lottery, raffle, number lottery game (toto, lotto, bingo, keno and their derivatives).
Betting on Sports Competitions and Races: This encompasses bets on outcomes of sports competitions as well as horse and dog races.
Betting on Chance Events and Guessing of Facts: This type of license allows for betting on random events and the guessing of facts.
Gambling Machines Games.
Slot Machine Games.
License for Manufacturing, Distribution, and Servicing: This license is necessary for entities involved in the manufacturing, distribution, and servicing of gambling equipment.
License for Import, Distribution, and Servicing of Gambling Equipment: This license is for those who wish to import, distribute, and service gambling equipment.
These gambling games, with the exception of the raffle and the instant lottery game, can also be organized online – directly through the Internet or through other electronic means of communication: mobile and stationary devices, radio, television, satellites and other means / Art. 41, para. 2 of the Gambling Act/.
The license gives the right to organize only the game or activity explicitly specified in it, meaning that a separate license is required for each type of gambling or activity.
A license for organizing lottery games, with the exception of raffles, bingo, and their varieties, may be issued only to the State of the Republic of Bulgaria.
c. Are there different types of licences for B2C and B2B operators?
The Gambling Act does not explicitly differentiate between licenses for B2C (Business-to-Consumer) and B2B (Business-to-Business) operators. Licenses are generally issued for organizing specific types of gambling, manufacturing, distribution, and servicing of gambling equipment.
d. Do software suppliers need to be licensed?
The Bulgarian Gambling Act does not explicitly state that software suppliers need to be licensed. However, it does indicate that licenses for organizing gambling, manufacturing, distribution, and servicing of gambling equipment are required. It also mentions that a “Computer System” should register players, carry out financial transfers, determine the results of the game, and ensure the supply of information to a server of the National Revenue Agency. While the Act does not directly address software suppliers, the implication is that any entity involved in these activities, potentially including software suppliers, would need to adhere to the regulatory framework.
According to the National Revenue Agency’s opinion on Bulgarian gambling law requested from the gambling society based on the lack of specific regulation, software suppliers must be licensed if they produce gaming software intended for multiple organizers. The law also mandates that any gambling equipment, including software, must meet specific quality standards and be registered. However, the NRA acknowledges some legislative ambiguity for standard gaming software, suggesting that such companies should obtain a license for production, distribution, and servicing.
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Are any types of gambling products prohibited?
Yes, the distribution and servicing of gambling equipment without a license are prohibited. Additionally, licensed organizers of gambling may not engage in any activity of manufacturing, import, distribution, and servicing of gambling equipment, except for import of gambling equipment for their own needs.
Restricted Locations: Organizing of gambling is forbidden in public state-owned and municipally-owned buildings and on the land belonging to them. This also applies to sites of the Ministry of Defence, Ministry of Interior, the National Service for Protection, buildings housing state administration structures, educational, health care and medical institutions, and faculties for the provision of social services for day care and residential care.
Improper Storage: Keeping of gambling equipment for organizing gambling outside the licensed sites is prohibited. This also applies to not publicly accessible warehouse premises and publicly accessible premises for trade exhibitions and presentations.
Mislabeling: Designating a gambling hall anything other than “Gambling Hall” is prohibited.
Participation Restrictions: Persons directly or indirectly involved in the organization of gambling, including state officials, are prohibited from participating in gambling.
Currency Restrictions: Gambling shall be conducted by bets and winnings in Bulgarian levs and euro only. Games with bets and winnings in other foreign currencies are prohibited.
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What is the headline application procedure? Please include any eligibility and other application requirements, including approximate application costs and any need to establish a local presence.
Headline Application Procedure:
Eligibility Requirements: The applicant must not have committed crimes against the financial, tax, or social security system, as established by an effective verdict. They should also not have overdue public liabilities exceeding BGN 5,000. Additionally, the applicant should not have performed activities as a sole proprietor or participated in a company whose license for organizing gambling activities has been permanently revoked.
Documents Required: The required documents for issuance of a license are outlined in the ordinance under Article 17, paragraph 3, item 5 of the Gambling Act. These documents must be submitted along with the application.
Application Submission and Review: The license applications can be submitted electronically to the email address nap@nra.bg and must be signed by the applicant with a qualified electronic signature. If an authorized person is submitting the request, a power of attorney should accompany the documents. The required documents are as per Article 5 and other relevant articles of the Ordinance on the documents required for issuing a license under the Gambling Act. The Executive Director of the National Revenue Agency will review the application and make a decision pursuant to the relevant chapter of the Gambling Act.
Fees: The Tariff for Fees under the Gambling Act specifies the costs for reviewing documents and issuing gambling licenses in Bulgaria. For reviewing documents, fees range from BGN 2,000 to BGN 20,000 depending on the type of game. For issuing licenses, the fees also vary by game type, with traditional lottery and online betting costing BGN 20,000 each, and casino games costing BGN 35,000. Additionally, fees for production, distribution, and service of gaming equipment are set at BGN 20,000. These fees are collected for each individual license.
Application Costs: The costs can vary depending on the type of gambling activity. For instance, BGN 10,000,000 is required for conventional lottery, numbers lottery games such as pools, lotto, and keno, among others. BGN 2,000,000 is required for organizing online gambling.
Duration: A license for import, distribution, and servicing of gambling equipment shall be issued for a term of 10 years only where the funds for organizing the activity proven in advance before the National Revenue Agency exceed BGN 400,000.
Local Presence: The Gambling Act of Bulgaria stipulates that if a company is registered in another member state of the European Union, in another state signatory to the European Economic Area Agreement, or in the Swiss Confederation, it must have an authorized representative with an address in the territory of the Republic of Bulgaria. This representative should possess powers to an extent that allows him/her to conclude contracts on behalf of the foreign company and to represent it before the state authorities and courts of the Republic of Bulgaria.
The presence of such an authorized representative essentially establishes a form of local presence, ensuring that the company has a point of contact within Bulgaria for legal and regulatory matters. This requirement ensures that the company is accountable under Bulgarian law and can be effectively regulated by Bulgarian authorities.
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Do individuals within the business need to be personally licensed or authorised? If so, please provide headline requirements.
Individuals within the business do not need to be personally licensed, but they must meet the eligibility criteria mentioned above.
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Is advertising of gambling permitted and, if permitted, how is it regulated?
Advertising of gambling in Bulgaria:
Direct Advertising Prohibition: Direct advertising of gambling is strictly prohibited. This includes advertising targeted at minors and underage persons. Additionally, sending unsolicited electronic messages containing information about a gambling game to an unlimited number of persons is also forbidden.
Permissible Announcements: While direct advertising is restricted, certain information may still be announced. According to Article 10, Paragraph 2 of the Gambling Act, the following types of information may be announced in the advertising of gambling: The names and terms of the games, including prizes, discounts, bonuses, coefficients, and free bets, excluding a winning participant/participants in the gambling games; The organizer’s registered trademark, and in events conducted under paragraph 3, the organizer’s company (name); Game results and winnings; Conducted drawings.
Obligations for Publishers: Legal entities and sole proprietors who publish, broadcast, and disseminate information about gambling are obligated to require documents proving that the organizer of the respective gambling game holds a valid license under the act.
National Ethical Standards: Special rules regulating the advertising of gambling are being developed as part of the National Ethical Standards of Advertising and Commercial Communication. Entities involved in the publishing, broadcasting, or dissemination of advertisements must comply with these standards.
In summary, Article 10 imposes stringent regulations on the advertising of gambling activities, with a particular focus on protecting minors and preventing unsolicited advertising. It also mandates compliance with National Ethical Standards and imposes penalties for violations.
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Are marketing affiliates permitted? If so, are they licensed or regulated?
The Gambling Act does not explicitly mention the role of marketing affiliates in the gambling industry. Therefore, it can be inferred that marketing affiliates are not explicitly regulated under this act. However, Article 10 does impose strict regulations on advertising, which could indirectly affect the activities of marketing affiliates. They would need to adhere to the same ethical and legal standards as the gambling operators themselves.
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What are the penalties for offering, facilitating or marketing unlawful gambling, and can the gambler be penalised for participating in unlawful gambling?
For Organizers: Violation of the act’s provisions could result in a pecuniary penalty ranging from BGN 10,000 to BGN 30,000 for legal entities and sole proprietors. For instance, Article 10 specifies penalties for illegal advertising practices.
For Gamblers: The act does not explicitly mention penalties for individual gamblers participating in unlawful gambling, focusing instead on the organizers and operators.
For Marketing Affiliates: While not explicitly mentioned, marketing affiliates could potentially face penalties similar to those imposed on organizers if they are found to be facilitating or promoting unlawful gambling.
In summary, the Bulgarian Gambling Act primarily focuses on regulating the organizers and operators of gambling activities, with stringent penalties for violations. Marketing affiliates, while not explicitly regulated, would need to operate within the legal framework to avoid potential penalties.
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Briefly detail key requirements for licensees.
Licensing Authority
All gambling activities in Bulgaria must be licensed by the executive director of the National Revenue Agency (NRA) as per Art. 3 of the Law on Gambling (LA).
Eligibility for License
Commercial Companies:
Must be registered in Bulgaria, another EU member state, a state party to the Agreement on the European Economic Area, or the Swiss Confederation.
Must meet the requirements of the Law on Gambling.
Sole Traders:
Eligible only for activities related to the production, import, distribution, and service of gaming equipment.
The State:
Can organize gambling only to support sectors like sports, culture, healthcare, education, and social work.
Non-Profit Legal Entities with Public Benefit Status:
Eligible in specific cases as provided for in the Law on Gambling.
Foreign Non-Profit Legal Entities:
Must be registered in another EU member state, a state party to the Agreement on the European Economic Area, or the Swiss Confederation.
Eligible only for socially beneficial activities and not for political parties.
Specific Requirements for Different Types of Licenses
Gambling Games with Gaming Machines:
Applicant must be a limited liability company or a joint-stock company with a minimum fully paid-up capital of BGN 500,000.
Must prove investments and funds as specified in Art. 5, para. 1, item 3.
Must comply with Articles 9, 44, and 64, para. 5 of the Gambling Act.
Gambling Games in a Gaming Casino:
Minimum fully paid-up capital of BGN 1,500,000 is required.
Must prove investments as specified in Art. 26, para. 4, item 2.
Must comply with Articles 9, 44, and 64, para. 5 of the Gambling Act.
Manufacturing, Distribution, and Service of Gaming Equipment:
Must prove investments as specified in Art. 26, para. 4, item 6.
Must comply with Article 9 of the Gambling Act.
Import, Distribution, and Service of Gaming Equipment:
Must prove investments as specified in Art. 26, para. 5.
Must comply with Article 9 of the Gambling Act.
These requirements are designed to ensure that only qualified and responsible entities are granted licenses to operate gambling activities in Bulgaria. The Executive Director of the National Revenue Agency plays a pivotal role in the issuance and regulation of these licenses.
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Briefly detail key anti-money laundering requirements.
Gambling operators in Bulgaria are subject to stringent Anti-Money Laundering (AML) regulations. They are required to perform comprehensive checks on their customers, which includes verifying identities, politically exposed persons and gathering information about the nature of upcoming transactions, including the origin of funds.
Operators are also obligated to keep up-to-date information about their customers and transactions. Additionally, all collected documents and information must be stored for a period of five years from the end of the calendar year in which the business relationship or transaction was terminated. This information must be readily available for inspection by the State Agency “National Security” upon request.
Lastly, operators are required to conduct a risk assessment tailored to their customer base and the nature of their operations and transactions. This risk assessment is a critical component of their AML obligations and helps in identifying and mitigating potential risks of money laundering.
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Briefly detail key responsible gambling (or safer gambling) requirements.
Key Responsible Gambling Requirements
Display of Information: Gambling organizers are obligated to display in a prominent place in all gambling halls, casinos, and other points of gambling activities, notices about the risk of problem gambling and information on opportunities for consulting and therapy.
Protection Measures: The Act outlines specific protection measures aimed at reducing or preventing potential adverse economic, social, and personal consequences for vulnerable persons and their relatives. Vulnerable persons are defined as minors, persons under judicial disability, individuals who believe they have gambling problems, and persons whose social position or income level makes them susceptible to problem gambling.
Contributions for Socially Responsible Behavior: Organizers are obligated to make annual contributions for socially responsible behavior. The amounts vary depending on the type of gambling game. For instance, BGN 50,000 for online betting, BGN 10,000 for casino games, and BGN 5,000 for all other types of gambling.
National Ethical Standards: Special rules regulating the advertising of gambling are being developed as part of the National Ethical Standards of Advertising and Commercial Communication. Entities involved in the advertising of gambling must comply with these standards.
Register for Vulnerable Persons: The purpose of the register maintained by the National Revenue Agency under Article 10c, paragraph 3 of the Gambling Act is to keep a record of individuals who have voluntarily requested to be restricted from participating in gambling activities. This self-exclusion mechanism serves as a protective measure for those who wish to limit or cease their involvement in gambling, either due to personal reasons or as a precaution against potential gambling-related issues. The register is an important tool in promoting responsible gambling and providing a safety net for individuals who recognize the need to take a step back from such activities. Access to this register is limited to specific officials within the National Revenue Agency and designated employees from the gambling game organizers to ensure confidentiality and proper enforcement.
These requirements aim to foster a more responsible gambling environment, safeguarding both the individual and society from the potential negative impacts of gambling activities.
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Briefly detail shareholder reporting and approval threshold(s).
The Gambling Act stipulates that organizers must submit a list containing the individualizing data of their sole proprietors, partners, or shareholders holding more than 33% of their capital, along with managers and members of management or controlling bodies.
In cases of changes in the membership of a management or controlling body, or of changed ownership, partner, or shareholder with qualified interest, the organizer is obligated to file a written request to the Executive Director of the National Revenue Agency within 14 days from the entry in the commercial register.
Thus, the Act places a particular emphasis on transparency and accountability, especially for shareholders holding more than 33% of the capital. This is in line with the overarching regulatory objective to maintain the integrity and lawfulness of gambling activities.
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Briefly detail the regulator’s enforcement powers, including sanctions.
The National Revenue Agency is the primary regulatory body responsible for the enforcement of gambling laws in Bulgaria. The agency has the authority to apply enforcement administrative measures, including the temporary or permanent revocation of licenses. Temporary revocation can occur for a period ranging from three to six months under specific circumstances, such as overdue public liabilities exceeding BGN 5,000 or advertising beyond the allowed limits. Permanent revocation can occur in cases like failing to submit required documents or changes in circumstances that result in non-compliance with the Act’s provisions.
The agency also has the power to issue penalty orders for violations under the Act. These orders are issued by the Executive Director of the National Revenue Agency or by a Deputy Executive Director authorized thereby. The penalty orders can be appealed against and implemented pursuant to the Administrative Violations and Sanctions Act.
The Gambling Act outlines a range of sanctions under Articles 96 to 118 for various violations related to gambling activities. The sanctions can be broadly categorized as follows:
For organizing gambling games without a license, penalties range from BGN 1,000,000 to BGN 200,000,000 for online betting and BGN 50,000 to BGN 200,000 for non-online gambling games (Article 96).
Penalties for not maintaining a special register as per Article 74 range from BGN 5,000 to BGN 20,000 (Article 114).
Violations related to advertising and website information can result in penalties ranging from BGN 5,000 to BGN 20,000 (Articles 113, 115).
Failure to discontinue activities and return the certificate of the issued license within 7 days can result in penalties (Article 116).
Other miscellaneous violations, such as not adhering to general mandatory gambling conditions, can result in penalties ranging from BGN 1,000 to BGN 10,000 (Articles 103, 109, 110).
Any person who fails to observe the time limits for meeting obligations or commits other violations not specified under Articles 96 through 117 shall be penalized by a fine ranging from BGN 500 to BGN 2,000 or a pecuniary penalty ranging from BGN 1,000 to BGN 5,000 (Article 118).
The sanctions are designed to ensure compliance with the Act and to deter illegal or unethical practices in the gambling industry.
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What is the tax rate?
The tax rate for gambling activities in Bulgaria is quite specific. For maintaining a license for organizing conventional lottery, raffles, instant lottery, pools, lotto, bingo, keno, and their variations, games of betting on outcomes of sports competitions and horse and dog races, betting on chance events, and bets involving right-guessing of facts, a state fee is collected. This fee is in the amount of 15 percent of the value of the bets made for each game. For gambling for which participation fees and commissions are collected, the state fee is 20 percent of the value of the fees and commissions received. For online betting, a double-component state fee is collected, which comprises a one-off fee in the amount of BGN 100,000 and a variable fee in the amount of 20 percent of the difference between the bets made and the winnings paid out.
In summary, the state fees vary depending on the type of gambling activity, ranging from 15% to 20% of the value of the bets or fees and commissions. Additionally, for online betting, there is a one-off fee of BGN 100,000.
In Bulgaria, there are two main types of taxes related to gambling activities. The first type is a 15 percent tax imposed on gambling activities where the bets are made through telephone or other electronic communication services. Both the organizer and the operator of these services are required to declare the bets and the tax electronically. They must do so by the 10th of the month following the month in which the games took place. The operator of the telecommunication service is responsible for withholding and paying this tax by the same deadline.
The second type of tax is specifically for organizers of games with slot machines and casino games, but it excludes online games. The tax amounts vary depending on the type of gaming equipment. For example, each gaming machine or place in a gaming hall or casino is taxed at BGN 500 per quarter. Each roulette table in a casino has a tax of BGN 22,000 per quarter, and other types of gaming equipment in a casino are taxed at BGN 5,000 per quarter. Organizers are required to declare this tax electronically by the 15th of the month following the end of the quarter. The tax is due in full for the quarter in which the license for organizing the gambling games is either issued or revoked.
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Are there any proposals for changing gambling laws and regulations in the next 12-24 months? If so, please provide an overview of the proposed changes and likely timing.
Changes are being planned in Bulgaria’s Gambling Law to prohibit advertising near schools, public buildings, and aggressive television content. These changes will be prepared by a working group based on the discussions held at the initial meeting on 11th of October, 2023 between the Finance Minister Asen Vasilev, the National Revenue Agency and the representatives from the four largest organizations in the gambling industry.
The working group shall also draft changes aimed at restricting the activities of illegal gambling websites and opportunities for money laundering through gambling. The Finance Minister Asen Vasilev emphasized the need for additional regulation in the sector but insisted that changes should be made in dialogue with the industry.
The working group which will work on any legislation changes proposals will include representatives from the Ministry of Finance, the National Revenue Agency, the Bulgarian Sports Totalizer, and four organizations from the gambling industry: the Bulgarian Association of Gambling Activities, the Association of Gambling Organizers and Activities, the Association of the Gambling Industry in Bulgaria, and the Bulgarian Gaming Association.
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What key regulatory developments are proposed or on the horizon in the next 12-24 months?
Advertising Restrictions: The government is planning to amend the Gambling Law to prohibit gambling advertisements near schools, public buildings, and in aggressive television content. This is a significant step towards responsible gambling and protecting vulnerable populations.
Combatting Illegal Activities: The working group under the Ministry of Finance will draft changes aimed at restricting the activities of illegal gambling websites. This is in line with global trends to make the gambling industry more transparent and accountable.
Anti-Money Laundering Measures: The working group will also focus on limiting opportunities for money laundering through gambling activities. This will likely involve stricter compliance checks and reporting requirements for gambling operators.
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Do you foresee any imminent risks to the growth of the gambling market in your jurisdiction?
Regulatory Changes: Any sudden or drastic changes in the regulatory landscape could pose a risk. For instance, stricter licensing requirements or higher tax rates could deter new entrants and affect existing operators.
Technological Challenges: The rise of online gambling demands robust cybersecurity measures. Any significant cyber-attack could undermine consumer trust and have a cascading effect on market growth.
Competition: The market is becoming increasingly saturated, especially with the rise of online platforms. Intense competition could lead to reduced profitability for individual operators.
In summary, while the Bulgarian gambling market has potential for growth, it is also subject to various internal and external risks that could impede that growth. Regulatory stability, economic conditions, and technological advancements will play significant roles in shaping the future of this industry in Bulgaria.
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If a gambling start-up was looking for a jurisdiction in which to commence its activities, why would it choose yours?
Favourable Tax Regime: Bulgaria offers a relatively low and straightforward tax structure for gambling activities, with rates ranging from 15% to 20% depending on the type of gambling. This could be financially advantageous for start-ups.
Regulatory Clarity: The Bulgarian Gambling Act provides a comprehensive legal framework that clearly outlines the requirements for licensing, operations, and advertising, among other aspects. This regulatory clarity can be appealing for new entrants.
EU Membership: As a member of the European Union, Bulgaria offers the advantage of a stable political and economic environment, along with easier access to other EU markets.
Technological Infrastructure: Bulgaria has a growing reputation as a tech hub, particularly in the fields of software development and cybersecurity, which are crucial for online gambling operations.
Skilled Workforce: The country has a pool of skilled professionals in areas such as law, finance, and IT, which can be beneficial for a start-up in terms of both setup and ongoing operations.
Consumer Market: With a population that has shown interest in various forms of gambling, Bulgaria offers a potentially lucrative domestic market.
Competitive Costs: Compared to other EU countries, Bulgaria often has lower operational and labor costs, which can be a significant advantage for a start-up.
Strategic Location: Situated at the crossroads of Europe and Asia, Bulgaria offers strategic advantages for companies looking to expand into both markets.
Government Support: The Bulgarian government has shown interest in supporting various forms of business investment, which could extend to the gambling sector.
Legal Expertise: Bulgaria has a growing number of legal experts specialized in the field of gambling law, which can facilitate the navigation of regulatory requirements.
In summary, Bulgaria offers a combination of regulatory clarity, a favorable tax regime, and a supportive business environment, making it a compelling choice for gambling start-ups looking to establish themselves in a stable and potentially lucrative market.
Bulgaria: Gambling Law
This country-specific Q&A provides an overview of Gambling laws and regulations applicable in Bulgaria.
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What is the legal definition of gambling?
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What legislation applies to gambling? Please provide a summary of the legal/regulatory framework.
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Which body/ies regulate gambling?
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Are licences available? If so: a) What is the duration of a licence? b) What types of licences are available? c) Are there different types of licences for B2C and B2B operators? d) Do software suppliers need to be licensed?
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Are any types of gambling products prohibited?
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What is the headline application procedure? Please include any eligibility and other application requirements, including approximate application costs and any need to establish a local presence.
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Do individuals within the business need to be personally licensed or authorised? If so, please provide headline requirements.
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Is advertising of gambling permitted and, if permitted, how is it regulated?
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Are marketing affiliates permitted? If so, are they licensed or regulated?
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What are the penalties for offering, facilitating or marketing unlawful gambling, and can the gambler be penalised for participating in unlawful gambling?
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Briefly detail key requirements for licensees.
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Briefly detail key anti-money laundering requirements.
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Briefly detail key responsible gambling (or safer gambling) requirements.
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Briefly detail shareholder reporting and approval threshold(s).
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Briefly detail the regulator’s enforcement powers, including sanctions.
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What is the tax rate?
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Are there any proposals for changing gambling laws and regulations in the next 12-24 months? If so, please provide an overview of the proposed changes and likely timing.
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What key regulatory developments are proposed or on the horizon in the next 12-24 months?
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Do you foresee any imminent risks to the growth of the gambling market in your jurisdiction?
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If a gambling start-up was looking for a jurisdiction in which to commence its activities, why would it choose yours?