Bulgarian lawmakers have proposed increasing gambling taxes as part of the 2026 Budget. The amended midterm budget for 2026 and 2028 raises the variable state licence fees that operators must pay from 20% to 25%. The increase will take effect from January 1, 2026, and will apply to lottery, bingo, raffle, keno, and online betting operations.
Key Insights on the Bulgarian Government’s Gambling Tax Hike Proposal
- Bulgaria’s Ministry of Finance plans to amend the variable portion of the two-part licensing fee structure as part of the 2026 Budget. Starting January 1, 2026, gambling operators will have to shell out 25% in taxes, rather than 20%.
- Casino operators currently pay a 20% variable fee on the difference between bets received and payouts made. The 5% increment is projected to generate an additional €56 million for the state coffers.
- Analysts explain that the 5% tax hike is merely symbolic since the additional revenue represents just 1.4% of the national fiscal deficit. Operators will transfer the burden to the players, as Bulgaria’s GGR tax applies to gross revenue rather than net profit.
Bulgaria’s Gambling Tax Hike Reflects General EU Sentiment
The Bulgarian Finance Ministry has announced plans to amend the Medium-Term Budget Forecast for 2026 to 2028. Notable changes include a 5% increase in the variable component of the two-part licensing structure that operators need to pay to secure a gambling permit.
Starting January 1, 2026, the variable component of the two-part state fee will increase from 20% to 25%. The new rate applies to lotteries, raffles, bingo, toto, keno, and sports betting operations. This amendment reflects a broader tax reform initiative happening across Europe.
Earlier this year, Latvia announced plans to increase gambling taxes from 2026, preponing the timeline from 2027. Romania approved a similar tax hike proposal in July to compensate for a 7% fiscal deficit. The Polish government also increased the tax rates on gambling winnings for the first time in 20 years.
Under Bulgaria’s proposed amendment to the Gambling Act, casino operators will continue paying a one-time fee of BGN 300,000 (roughly €153,392). Betting operators will also pay the fixed sum of BGN 400,000 (roughly €204,522). The 20% variable fee, calculated on the difference between bets received and winnings paid out, will increase to 25%.
Gambling Tax Raise to Provide Minimal Fiscal Gain
Several reports on Bulgaria’s fiscal deficit find that the 5% tax hike will have no significant impact on the state coffers. The regulated online gambling sector generated €562 million in Gross Gaming Revenue during 2023. Assuming that land-based and online gambling companies contributed equally to the tally, the total GGR for 2023 would be €1.1 billion.
Under the old 20% variable tax rate, the government would receive €225 million in revenue. The new 25% tax rate increases the amount to €281 million. The difference, amounting to €56 million, represents roughly 1.4% of Bulgaria’s national annual deficit. As a result, analysts argue that the tax hike is merely symbolic and will not have any significant impact on the budget.
However, the industry will feel the pinch as Bulgaria’s tax regime applies to GGR rather than net profit. A similar incident recently occurred in Northern Ireland, where All-Party Group MLAs appealed to Chancellor Rachel Reeves to raise online gambling taxes. In both situations, operators cannot claim tax relief on the cost of running, staff salaries, marketing expenses, or platform fees. Therefore, increasing daily operational expenses.
Analysts expect operators will most likely pass on the added tax burden to consumers and safeguard their own profits. Players may receive lower bonuses and higher wagering requirements. However, the Finance Ministry hopes to generate additional revenue for the state budget, which will be used to fund social development initiatives.
This forecast, however, does not include the impact of the tax hike in 2027 and 2028. The Finance Ministry’s proposal is loosely based on the 2025 budget discussions from the caretaker Government of former Prime Minister Dimitar Glavchev. In that version, the government had proposed a 10% tax hike. Prime Minister Rosen Zhelyazkov’s government has scrapped his predecessor’s proposal.