Tough gambling advertising restrictions in Bulgaria, implemented in May have hit operator revenues hard. They are weighing up their options with no real respite in sight. This includes exiting the market altogether.
Bulgaria is one of the most mature and established gambling markets in Europe. Its regulatory framework dates back to 1998. However, recent changes to regulation are placing the jurisdiction on shaky ground.
The government introduced a tough set of new regulatory measures last May 18 for the gambling industry. It includes a near complete ban on advertising. Bulgaria banned licensed operators from advertising on radio, television, newspapers, and online media websites almost overnight.
They still allowed billboards, but only if they were at least 300 meters away from schools, universities, playgrounds, and other protected areas. Additionally, at least 10% of the advertising space had to feature a warning about the dangers of gambling. Authorities tightly regulated advertising on buildings offering gambling services. They allowed only 50 square meters or 20% of the entire facade for advertisements.
MPs also voted to include specific social groups on the national self-exclusion register beyond the crackdown on advertising. This includes people receiving state support — effectively banning welfare recipients from gambling.
A specific odd clause in the law stated that land-based operators could no longer open gambling venues in towns with populations under 10,000. Authorities gave operators in breach of this rule, or those located within 300 meters of a protected area like a school or student accommodation, three years to close.
Investments director at local operator Sportingwin, Mark Chakravarti said that advertising ban has led to a steep decline in revenue for Bulgaria-facing operators.
He tells iGB that global research shows that when they have these bands put in place, especially limiting TV commercials, there is a drop of 20% revenue in the next two months. He thinks it’s been very similar in the Bulgarian market.
