Bulgaria to raise tax for gambling operators to 25%

From January 2026 Bulgaria increase tax on companies' gross gaming revenue (GGR) from 20% to 25%. The change is included in the new state budget aimed at reducing the €3.86 billion deficit. The increase will affect all categories of operators: bookmakers, lotteries, casinos and online gambling.

According to Yield Sec, the online gambling market in Bulgaria generated about €562 million GGR in 2023. Assuming that the land-based sector performed similarly, the industry's total revenue would be around €1.1 billion. After the rate increase, tax revenues will increase by around €56 million - enough to cover only 1.4% of the budget deficit.

The fiscal impact could be symbolic, while the burden on operators could be substantial. Companies will not be able to deduct marketing, personnel and technology costs before tax, which will reduce their profits and lead to reduced bonus programs. New entrants may delay entry into the market, finding it less predictable.

Nevertheless, even after the increase, the rate will remain one of the most moderate in Europe. Bulgaria only follows the general trend: earlier Romania raised the tax to 27% and the Netherlands - to 37.8%. Experts warn that excessive pressure may lead to the opposite effect - a decrease in turnover and, as a consequence, a drop in tax revenues, as has already happened in the Netherlands.