Basic Law: Gambling Act 2012, amended 2020

Basic Law: Gambling Act 2012, 2020 Amendments

The Gambling Act adopted in 2012 was a turning point for the Bulgarian industry - for the first time it formed a systematic approach to licensing, supervision and protection of players. The 2020 amendments strengthened state control by transferring powers to the tax department and introduced a monopoly on lottery games. As a result, Bulgaria became an example of a European model of regulation with a focus on transparency and fiscal discipline.

1) Structure and objectives of Gambling Act 2012

The main task of the law is to create a transparent, regulated and taxable gambling system in accordance with EU principles. It covers both the offline and online segment, defining:

gambling categories (casinos, slots, lotteries, bingo, sports betting, online gambling);
licensing requirements for equipment operators and suppliers;
tax structure and fiscal reports;
responsibility for violation of the regulations;
consumer protection and anti-gambling mechanisms.

2) Operator licensing

The main types of licenses are:

Casino games (including online);
Betting (sports betting and events);
Lotteries, Bingo, Raffles;
Gaming machines (slots, terminals, VLT);
Online gambling license is a separate unit for remote services.

Requirements for license applicants:

registration in Bulgaria or in the EU;
availability of certified equipment and RNG;
transparent origin of capital and tax purity;
implementation of KYC/AML policies and Responsible Gaming measures;
mandatory connection to a centralized income monitoring system.

Licenses are valid for up to 10 years, with the possibility of extension.

3) Taxation and fiscal control

Gross receipts tax (GGR): the rate depends on the vertical (bets, casinos, lotteries).

Unified accounting center - all operators are required to transfer data on rates and payments to the state system managed by NAP.

License fees: Separate rates for each type of game charged annually.

The law emphasized transparency and regular reporting, which allowed a sharp reduction in the "gray sector" and an increase in budget revenues.

4) Advertising and marketing restrictions

a ban on aggressive advertising aimed at minors or vulnerable groups;

the requirement to indicate the probability of winning and age restrictions;
a restriction on the use of celebrity imagery and state symbols;
ban on promotion without clear information about risks;

media and agency liability for posting unlicensed content.

5) Responsible Gaming and Player Protection

mandatory limits of deposits, time and rates;

self-exclusion and "time out" tools;
a ban on gambling for anyone under 18;
Staff training requirements for dealing with vulnerable clients

data storage standards and risk notifications.

6) 2020 amendments: a new stage of regulation

The 2020 reform radically changed the oversight system.

Key changes:

1. Transfer of control functions to the National Revenue Agent (NAP).

This provided fiscal transparency and a direct link between tax flows and oversight.

2. State monopoly on lotteries.

Private lottery companies have lost the right to issue their own tickets - now all lotteries are controlled by the state-owned Bulgarian Sports Betting Company (BST).

3. Strengthening compliance.

New requirements have been introduced for RNG audit, operator reporting, payment control and advertising activity.

4. Tight control of unlicensed sites.

NAP received the right to block domains and limit payments in favor of illegal operators.

5. Financial sanctions.

Increased penalties for violations, including blocking assets and suspending licenses.

7) Goals and effect of 2020 reforms

Budgetary efficiency. Centralization of supervision increased the collection of taxes and fees.

Financial security. Suppression of illegal schemes and fraud operations.

Social responsibility. Fighting ludomania and protecting players through enhanced RG tools.

Simplification of supervision. Reducing bureaucracy by combining functions in the NAP.

8) Online gambling and digital standards

full legalization of online gambling with a Bulgarian or European license;

requirements for servers, RNG certification and integration with the NAP reporting system;
monitoring payments and traffic for illegal transactions;
mandatory presence of the Bulgarian version of the site and support service;

a clear RG panel in the user interface.

9) Compliance with European directives

The law is adapted to key EU norms:

AML Directive (Anti-Money Laundering);
GDPR - data protection and privacy;
MiCA (upcoming regulation of crypto assets) - a prospect for the introduction of crypto payments, subject to compliance;
EBA/EGBA recommendations on advertising, RG and fraud control.

10) Forecast and industry significance

By 2030, the Bulgarian Gambling Act remains a stable framework with projected changes:

point adaptation for digital currencies and cybersecurity;
integration of ESG reporting and public RG metrics;
further centralization of supervision through NAP and electronic systems;
growing international interest in the Bulgarian model as a "Balkan standard" of regulation.

Gambling Act 2012 and the 2020 amendments laid the foundation for a transparent, safe and socially responsible gambling market in Bulgaria. The transfer of control into the hands of the NAP, the strengthening of KYC/AML and Responsible Gaming, and the balance between fiscal and humanitarian goals made the country an example of a stable and mature jurisdiction in Eastern Europe.

Bulgaria is now associated not only with resort casinos, but also with the technologically and legally sustainable iGaming sector, which is able to attract international brands without prejudice to public interests.