According to the newly approved national budget, Bulgaria will increase its gambling tax. The rate will rise from 20% to 25% of gross gaming revenue starting in January. The move is part of a wider effort to reduce a projected €3.86 billion deficit. It applies to all licensed operators including sports betting, lotteries, random event wagering, as well as online gambling.
Even though it remains below levels in some Western European markets, the higher rate is significant. It positions Bulgaria among the more heavily taxed countries in Central and Eastern Europe. The measure signals a general tightening of state finances rather than a targeted social or regulatory initiative. The government included it in the budget without public debate or a specific allocation for the extra revenue.
The increase of follows in Bulgaria follows a trend in numerous European Union countries toward higher gambling taxes. The Netherlands will impose a 37.8% GGR tax from January 2026. Last year, Romania raised its online gambling levy from 21% to 27%. Analysts note that European governments are increasingly viewing gambling revenue as an untapped source of income amid rising debt and inflation.
The immediate fiscal impact in Bulgaria is expected to be modest. Data from analyst from Yield Sec shows that regulated online gambling operators in the country generated around €562 million in gross gaming revenue in 2023. Total GGR would be about €1.1 billion, assuming land-based casinos, as well as betting shops created similar figures. The state collected about €225 million under the previous 20% tax. Authorities expect the new 25% rate to bring in €281 million. This represents an increase of €56 million, or roughly 1.4% of the national deficit.
Bulgaria levies the tax on gross revenue rather than net profit. Industry observers warn that the increase could heavily impact operators. Companies cannot deduct costs such as wages, marketing, or platform expenses before paying the tax. Even a 5% rise can reduce profitability and affect investment decisions.
