Gambling Industry in Bulgaria — Complete Regulatory Overview for Foreign Operators (2026)

Legal framework and regulator

Gambling activity in Bulgaria is governed primarily by the Gambling Act (Закон за хазарта), in its current wording as promulgated in State Gazette No. 26 of 27 March 2025. The Act defines the scope of all permitted gambling activities — both land-based and online — and establishes a unified regulatory regime for the entire market. The framework is complemented by the Tariff of State Fees under the Gambling Act, the technical ordinance on gaming software, the Anti-Money Laundering Measures Act (AMLMA) and the Corporate Income Tax Act.

Regulator: National Revenue Agency (NRA)

In 2020, Bulgaria executed a significant reform: the State Commission on Gambling was abolished, and all of its regulatory functions were transferred to the National Revenue Agency (NRA). The result is a single authority that simultaneously issues licenses, supervises operators, collects the specific gambling taxes and fees, and maintains the public registers. For operators this means shorter communication lines and greater predictability — but also a tighter link between tax enforcement and regulatory oversight.

Bulgaria is a full EU member state and its gambling market is fully regulated. Importantly, however, EU passporting does not apply to the gambling sector — each member state operates its own licensing regime and requires a separate national license for activity on its territory.

Market snapshot — why Bulgaria

The Bulgarian gambling market is one of the oldest regulated markets in Central and Eastern Europe. Legal gambling dates back to the early 1990s, and over the last three decades the country has built a mature infrastructure of casinos, slot halls, bookmakers and — since the mid-2010s — online operators.

Key market characteristics:

• Strong land-based tradition — casinos and slot halls have broad presence in urban centres and, especially, tourist destinations
• Tourist hotspots — Sofia, Varna, Burgas and Sunny Beach concentrate the bulk of the casino segment
• Growing online segment — particularly since 2014, when a modern online gambling framework was introduced
• Stable EU jurisdiction — an advantage when dealing with international payment providers, banks and gaming platform suppliers
• Quality compliance infrastructure — an established legal practice in gambling and AML law

For international operators already present in Malta, the UK or Gibraltar, Bulgaria offers additional EU diversification, proximity to fast-growing Balkan markets and materially lower operating costs than Western European jurisdictions.

License types — overview

The Gambling Act distinguishes several principal categories of activity, each of which requires a separate license from the NRA:

Each activity requires a separate license. An operator wishing, for example, to combine slot halls with sports betting must obtain two distinct licenses and fulfil the requirements for each in full. For a deep-dive into the specific regime for online gambling we recommend our dedicated article Online Gambling in Bulgaria 2026 — Licensing, Fees and Regulation.

Who may apply

The Gambling Act allows applications only from commercial companies in the following forms: EOOD (single-member LLC), OOD (LLC), AD (JSC) or EAD (single-member JSC). The applicant must be registered in:

• The Republic of Bulgaria
• Another EU member state
• A state in the European Economic Area (EEA)
• The Swiss Confederation

There is no requirement for a local partner — a foreign investor may own 100% of the licensed company. Foreign applicants are, however, required to appoint an authorised representative in Bulgaria, who handles communication with the NRA, court representation and AML compliance.

Additional personal and corporate criteria:

• Documented legal source of funds for shareholders and the ultimate beneficial owner (UBO)
• Clean criminal record of directors, owners and key personnel
• Genuine operating company with office and operational structure — no “letterbox” entities
• In certain cases — documented industry experience of 10+ years for principal shareholders or management

To set up the right corporate vehicle in Bulgaria, see our guide Company formation in Bulgaria.

Physical requirements for land-based venues

Unlike the online segment, land-based operators must also meet strict infrastructure requirements covering premises, the number of machines or tables, and security arrangements.

Casinos

• A minimum of 5 gaming tables — roulette, blackjack, poker vs. dealer, baccarat, etc.
• The venue must be located in separate premises, clearly demarcated from any other commercial activity
• 24/7 security and continuous CCTV surveillance with stored footage
• Integrated cash management systems for turnover control
• Access control — identity and age verification of visitors

Slot halls

• In cities with a population above 50,000 — a minimum of 20 slot machines
• In smaller locations — a minimum of 10 slot machines
• A minimum floor area of 2 m² per machine
• Continuous (24/7) video surveillance
• Dedicated entrance and age control

All premises undergo a technical inspection by the NRA before the activity is commenced. Machines must be certified, must maintain a central communication link with the NRA and must comply with the technical ordinance.

Tax regime 2026

The taxation of gambling in Bulgaria is mixed — standard corporate income tax combined with a gross gaming revenue (GGR) tax for certain categories. As of 1 January 2026, the tax burden has been materially increased.

Important: Slot and casino segments are taxed primarily through license fees and fixed annual per-machine / per-table levies — not through GGR. This means different license types carry fundamentally different tax economics, which must be modelled carefully in the business plan.

For online operators, the combined effective burden — 25% GGR, 10% corporate income tax on net profit after GGR, and 5% dividend withholding — can exceed 40% of gross gaming revenue. For details on Bulgarian corporate taxation see Corporate Income Tax in Bulgaria.

Restrictive advertising regime

Bulgaria maintains one of the strictest gambling advertising regimes in the EU. This is a critical strategic factor that international operators must factor into the business plan from day one.

Core prohibitions:

• Ban on TV advertising
• Ban on print advertising
• Ban on advertising in online media
• Ban on advertising in public places — billboards, bus stops, transport

Limited exemptions:

• On-premises signage at the licensed venue
• The operator’s logo on its own website
• Limited forms of sports sponsorship subject to additional conditions
• Informational messages to registered players (direct marketing)

Indirect advertising — brand presence on team kits, partner websites or billboards carrying unrelated content — is also regulated and is frequently treated as prohibited advertising.

Strategic impact: The restrictions on mass-market advertising force operators to build presence through SEO, content, partnerships, loyalty programmes and (for land-based) through location choice and on-site experience. The marketing playbook has to be fundamentally different from Malta, the UK or Germany.

Ongoing operator obligations

Beyond capital and infrastructure, operators take on a broad set of operational and compliance obligations:

• AML compliance under the AMLMA — gambling operators are obliged entities, applying KYC, transaction monitoring and suspicious-activity reporting to the State Agency for National Security (SANS)
• KYC for customers — especially online and for high-value land-based transactions
• Responsible gambling — self-exclusion register, deposit and time limits, help-line and information on problem gambling
• Player fund segregation — customer money must be held separately from operating capital
• Reporting to the NRA — periodic returns on turnover, winnings, tax liabilities and technical incidents
• Video surveillance and archiving — retention of footage for the prescribed period
• Document retention of at least 5 years for AML purposes
• Annual AML training for staff — see our article on AML training requirements

For a detailed breakdown of AML obligations for gambling operators see AML in the Gambling Industry.

Procedure and timelines

The licensing procedure is conducted in writing before the NRA and is initiated by an application accompanied by a complete documentation set — articles and constitutional documents, proof of paid-in capital, UBO source-of-funds evidence, business plan, technical project, internal AML rules and criminal record declarations.

Key parameters:

• Review period: 60–90 days from a complete application
• License validity: 5 years
• Renewal possible before expiry, subject to demonstrated compliance
• Software certification — for electronic and online games — by an accredited lab
• Technical integration with the NRA — real-time reporting for tax and supervisory purposes
• On-site inspections of the venue/infrastructure before the license is issued

In practice, the end-to-end process — from company formation and capital contribution through documentation preparation to a ready-to-operate license — usually takes between 6 and 12 months, depending on the type of activity.

Sanctions and enforcement

Breach of the Gambling Act carries significant administrative and, in serious cases, criminal consequences. The NRA has a broad range of powers to combat unlicensed operations.

• Fines of up to BGN 1,000,000 for unlicensed gambling activity
• License suspension or revocation for systematic or serious breaches
• Personal criminal liability of managers and board members in the most serious cases
• Confiscation of assets related to illegal activity
• Blacklist of unlicensed gambling websites, maintained publicly by the NRA
• ISP blocking of access to the blacklisted websites
• Payment blocking — banks and payment institutions must halt transactions to and from unlicensed operators

Enforcement against unlicensed activity has grown significantly in recent years, in parallel with digitalisation of controls and the expanded reach of the AMLMA.

Why Bulgaria — strategic advantages

Despite the strict advertising regime and higher tax rates, Bulgaria continues to attract international gambling operators. The core advantages are:

• Stable EU jurisdiction — full membership, EU-standard data protection, AML and payments frameworks
• Mature legal framework with 30+ years of history and a predictable regulator
• Low corporate income tax (10%) — one of the lowest in the EU
• Central Balkan location — a convenient base for operations into neighbouring markets
• Growing online market alongside rising digital literacy
• Quality legal and compliance infrastructure — experienced firms in gambling, AML and tax law
• English-speaking workforce in IT, compliance and customer support
• Cost-effective operations compared to Western Europe — salaries, office space, services
• Stable banking sector with international connections and PSP partners

Challenges for operators

At the same time, any international investor must weigh the following challenges:

• Strict advertising restrictions — requiring a fundamentally different go-to-market strategy
• Higher GGR tax — 25% from 2026 — affecting margin models in online and lottery
• Significant compliance burden — AML, KYC, responsible gambling, technical reporting
• Increased AML scrutiny following recent amendments to the AMLMA
• Local representative requirement for foreign applicants
• Time exposure — 6–12 months from formation to license
• Capital lock-up — minimum BGN 750,000–1,500,000 of capital committed

Strategic recommendation: before moving to formal incorporation and filing, it is critical to conduct a detailed pre-licensing assessment — financial modelling under current tax rates, legal due diligence on the ownership structure, and an evaluation of the marketing strategy in light of advertising restrictions.

Frequently asked questions