In a strategic move to address its looming fiscal gap, Bulgaria has announced an increase in its gambling tax, raising the gross gaming revenue (GGR) rate from 20% to 25% starting January 2026. This decision follows the recent approval of the national budget and reflects Bulgaria’s efforts to bridge a significant €3.86 billion deficit. The adjustment is part of a broader pattern seen across the European Union, where several countries are elevating gambling taxes to bolster public finances.
The upcoming tax hike will impact all licensed gambling operators within Bulgaria, encompassing sectors such as sports betting, lotteries, random event betting, and online gambling. Although this increase brings Bulgaria’s rates closer to the EU average, it still lags behind some neighboring countries. For context, Romania recently boosted its GGR tax from 21% to 27%, while the Netherlands is set to elevate its rate to a substantial 37.8% in 2026.
Interestingly, the Bulgarian government has not designated specific uses for the additional revenue. The move appears to be primarily driven by fiscal considerations rather than targeted funding initiatives. Experts, however, suggest that the actual financial impact on the state coffers may be modest. Data from Yield Sec indicates that in 2023, regulated online operators contributed approximately €562 million in GGR. Assuming land-based gambling generates a similar amount, the total GGR comes to around €1.1 billion. At the new rate of 25%, this translates to roughly €281 million in tax revenue a €56 million increase from the current system covering only about 1.4% of Bulgaria’s deficit.
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While the fiscal gains seem limited, industry insiders warn that the tax increase might pose hurdles for operators. Since costs related to marketing, salaries, or platform expenses cannot be deducted before taxation, the higher rate could squeeze profit margins and reduce overall turnover. This might result in smaller bonuses for players, less promotional activity, or even discourage new operators from entering the market due to increased uncertainty.
Analysts caution that Bulgaria could experience a scenario similar to the Netherlands, where a higher tax rate led to a decline in total tax revenue because of a shrinking legal market. The new tax rate is scheduled to come into effect in January 2026, just after Bulgaria’s anticipated entry into the Eurozone, signaling a significant period of economic transition for the country.
