State revenue from taxes and licenses

The gambling industry in Bulgaria is a notable source of revenue for the budget. The fiscal "package" consists of a tax on gross gaming income (GGR) and/or other special payments, corporate income tax, licensing and annual regulatory fees, social contributions from the wage fund, as well as fines and penalties for violations. The picture is complemented by indirect taxes and fees from related industries (advertising, rent, IT services, payment infrastructure). Below is how it works in practice.

1) Fiscal revenue map

1. Taxes related to the game and revenue of operators

Special Gambling Tax/GGR Tax. Based on gross gaming income: GGR = bets − payouts.

Corporate income tax. Payable on taxable profits after all permitted deductions.

2. Licenses and regulatory payments

License fees on receipt and renewal (by activity: casino, slots, online casino, betting, lottery/bingo).

Annual contributions to the regulator for supervision and technical certification (RNG, circulation equipment, live studios, reporting).

3. Labor and social payments

Social and health insurance contributions paid by employer and employee.

Income tax on employees (dealers, croupiers, cashiers, IT, risk analysts, support).

4. Indirect and other charges

VAT on non-core services (e.g. F&B in casinos, events, hall rentals).

Fines and penalties (for violations of RG, AML/KYC, advertising regulations).

Advertising/media fees (where applicable), local outdoor advertising fees.

2) How revenue is allocated to segments

Online casinos and betting. The main source is GGR tax/special fees + corporate tax; a growing base thanks to mobile and omnichannel.

Offline casinos and slot halls. Plus to taxes - significant receipts from workplaces (personal income tax and social contributions), inspections and certifications of equipment.

Lotteries/bingo. Pay licenses/fees, tax on GGR and ensure a steady flow through regular runs.

Bookmaker retail. Combination of GGR and employment taxes + local fees (signage, advertising).

3) Example of budget effect calculation (simplified)

💡 Conventional figures to illustrate the procedure.

Industry GGR: €1.8 billion/year.

Special tax/GGR tax: let's say the effective rate ~ X% → €1.8 billion × X% = €... million

Corporation tax (after deductions): industry operating profit €... million × rate = €... million

Licenses and annual fees: market amount, e.g. €... -... million

Social contributions and personal income tax of employees: with payroll of the industry €... million - about €... million in aggregate.

Fines/penalties and other: €... million

In total, a multi-source contribution is obtained, where the GGR tax gives the "core," and employment and licenses add stable "binding."

4) Role of licensing and certification

Primary license: one-time contribution + proof of financial stability, sources of capital, infrastructure and RG policies.

Annual payments: license maintenance, RNG/studio certification, audit reports.

Technical control: mandatory event logs, rate/payment logs, integration of reporting for the regulator.

5) Taxes on winnings from players

Practice may vary in products and winnings. Often, small winnings are not taxed separately (tax is included in the GGR), large ones require identification and may fall under special rules.

Operators are required to inform about the terms of payment and, if necessary, withhold tax in accordance with current regulations.

6) Fighting unlicensed segment = budget protection

Blocking domains and payments, data exchange with PSP and banks, "black lists" - a typical toolkit.

Sanctions for advertising unlicensed sites and for attracting traffic to the "gray zone."

Effect: leveling competition and increasing tax collection, reducing consumer risks.

7) Responsible play and targeted funding

Often regulatory frameworks provide for targeted allocations for addiction prevention, hotlines, research, and educational programs.

For the operator, this is an additional cost, for the state - the long-term stability of the industry and a reduction in external costs.

8) How online is changing the fiscal picture

Pros: better transaction logging, instant telemetry, higher GGR transparency, more convenient limit control and self-exclusion.

Challenges: international payment routes, fast bonus turnover and arbitration - advanced AML/anti-fraud models and interagency interaction are needed.

9) KPIs the state is looking at

GGR tax collection and dynamics by segment.

Share of "white" turnover (migration from the illegal segment).

Contribution to employment and average industry salary.

Sanctions/fines vs repeated violations - compliance quality indicator.

RG-maturity index: coverage of limits/self-exclusion tools, conversion to consultations.

10) Scenarios 2025-2030: What will happen to budget revenues

Base case scenario. Moderate online growth and offline stabilization → receipts grow in proportion to GGR, "body" - tax on GGR + stable licenses.

Optimistic. Improvement of payment infrastructure, tourism, technological modernization → expansion of the tax base, higher corporate profits, growth of personal income tax/contributions.

Stress scenario. Tightening promo/advertising, raising rates, macro drawdown → pressure on margins and bonus economics, slowing revenue growth, but partial compensation with fines and one-time payments.

11) Risks and points of attention for the regulator

Online super-bonus competition (an increase in the player's "value") reduces net profit and the base for corporate tax.

Crypto payments and cross-border schemes complicate accounting if not integrated into control.

Advertising and sports sponsorship: balancing consumer protection and industry revenue stability.

HR market: The lack of compliance/data specialists may limit the scaling of the "white" segment.

12) What else makes money indirectly

Licensing of suppliers (RNG certification, live studios, integrators).

Events and tourism: tournaments, festivals, VIP events (VAT, local fees, tourist tax).

Media and marketing: taxes on advertising budgets, content production, stream infrastructure.

13) FAQ

What is more important for the budget - GGR tax or corporate tax? In the short term - the GGR tax (it is more stable than the volume of profit), in the long term, the corporate tax through the efficiency of operators is also significant.

Why do licence fees keep weight off? These are predictable annual receipts that provide oversight and market quality.

How does online affect collection? Improves transparency and ease of control, but requires enhanced AML/anti-fraud solutions.

Is there any seasonality in state revenues? Yes, through GGR: sports calendar, holidays, tourist season.

State revenues from Bulgaria's gambling sector are a combination of GGR tax, corporation tax, licenses/annual fees, social contributions, personal income tax, VAT and fines. With digitalization, the role of transparent accounting and RG policies is only growing: it maintains public confidence, stabilizes revenues and reduces external costs. With balanced regulation and the fight against the illegal segment, the state receives a predictable fiscal flow, and business receives clear rules of the game and planning horizons until 2030.