Starting January next year, Bulgaria will introduce a higher tax rate on the gross gaming revenue (GGR) of the gambling sector. The decision was included in the new state budget as the government seeks to close a deficit of €3.86 billion.
Under the amendments, operators of sports betting, lotteries, games of chance, and online gambling will be required to pay a 25% tax on GGR, instead of the current 20%.
Despite the increase, the tax rate remains relatively low by European standards, and the change merely brings Bulgaria closer to the upper range of tax regimes in other EU countries. However, the move reflects a wider trend of rising gambling taxes across EU member states. Romania raised its online GGR tax from 21% to 27% in July, while the Netherlands will increase the tax ceiling to 37.8% from January 2026.
The new Bulgarian budget does not specify that the additional revenue from the tax increase will be allocated to gambling-related initiatives. This indicates that the measure is a fiscal step aimed at boosting state revenues in 2026.
In the context of the overall budget deficit, the GGR tax hike appears largely symbolic. According to estimates by analytics firm Yield Sec, regulated online gambling operators in Bulgaria generated around €562 million in revenue in 2023.
The analysis focused exclusively on the online sector, which is the largest and most accessible for players. It is reasonable to assume that land-based GGR was equal to or lower than €562 million.
For the sake of calculating the maximum potential tax return, let’s assume both segments generated €562 million each – a total of €1.1 billion in GGR. At a 20% tax rate, that would produce around €225 million. Under the new 25% rate, revenue would increase to €281 million. The €56 million difference covers roughly 1.4% of the €3.87 billion deficit – a drop in the ocean.
While the government will only be able to cover a small portion of its financial shortfall, the tax increase may significantly impact licensed operators. Since operators cannot deduct expenses – such as marketing, salaries, or platform fees – before taxation, the change affects not only profits but also their gross revenue.
This may lead to fewer bonuses or reduced offerings for players. New entrants may begin viewing the market as unstable and delay entry. Moreover, if turnover starts to decline, Bulgaria may see a repeat of the Dutch scenario, where a tax hike resulted in an overall decrease in tax revenue.
Overall, the market is at a crossroads and could move in a positive or negative direction. With Bulgaria officially joining the Eurozone in January, there is more than one reason for stakeholders to monitor developments closely.
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