Report Shows Cuts on Bulgarian Gambling Taxes Paid Off
Posted: April 6, 2018
Updated: May 22, 2018
It is now official: due to the revisions on Bulgarian gambling taxes, the industry keeps steadily growing there. So much so that it has almost reached the USD 2 billion revenue line last year.
A report by Moody’s Amadeus indicates that the gambling sector brought the country BGN 3 billion (approx. 1.9 USD) in 2017.
Last year’s achievement is even more impressive when compared to previous reports. As novinite.com points out, the figures seem to have doubled since ten years ago.
The reason for success
The country had not always been big on gambling. Before 2013, a 15% tax on online betting turnover discouraged most investors from opening online gambling sites in Bulgaria. Land-based casinos were also seen as unrewarding.
In 2013, however, the Parliament voted in favor of reductions on Bulgarian gambling taxes. To increase the number of operators who apply for a state license, the 15% overall tax has been reduced to 20% of gross profits. The change worked so well that as of 2017, 1 327 companies have registered.
Bulgarian gambling taxes today
Any investor can try their luck at online gambling in Bulgaria by purchasing a one-time license for BGN 100 000 and paying the 20% revenue on their income. The taxes for traditional, ground-based establishments are determined by the number of gaming devices they operate.
Scratching tickets constitute the most successful branch of betting in the country. Since many do not consider them “real gambling,” their popularity is ever-growing. The prevalence of scratching cards and Bulgary’s zeal for gambling is attracting criticism. For instance, Timohir Bezlov, analyst at the Center for the Study for Democracy, have recently commented on the “increase in the dependence on gambling among the population.”
The country has been making steps to promote responsible gaming. To that end, it obliges licensed gambling operators to donate to organizations that prevent or cure unhealthy playing habits. To ensure that you don’t develop such habits yourself, follow these simple rules.