Proposed Revisions to the Bulgarian Gambling Act Rejected by Parliament
The Bulgarian Parliament rejected proposed amendments to the Gambling Act aimed at reducing the broad influence of gambling-related ads at new online casinos. The amendments, offered by Kostadin Kostadinov of the Vazrazhdane party, were defeated 67-29, despite backing from BSP for Bulgaria and the populist group “There Is Such a People”.
The proposed measures aim to address social problems associated with gambling, including the implementation of stronger advertising regulations at top-rated online casinos and the establishment of an empowered register for those suffering from gambling addiction.
However, dissident voices from GERB-UDF warned about the potential negative impact on municipal sports institutions, noting that such measures would only scratch the surface of addiction’s underlying roots.
The Proposal Also Included a Fine for Media Outlets
Earlier this week, some of Bulgaria’s best brains joined in the endless debates about gambling in Sofia’s Parliamentary House. The controversy began at the end of last year when Kostadin Kostadinov and his nationalist party, Revival (Bulgarian: ‘Vazrazhdane’), drafted a proposal to change specific provisions of the country’s current Gambling Law.
Kostadinov’s goal was to develop a more consistent regulatory structure. One noteworthy point of interest was the near-complete revision of advertising restrictions at best online casinos.
The reforms were sought because the political party Vazrazhdane feels that they are required to combat the onslaught of ads for gambling that dominate TV, radio, and other electronic media, reaching children and vulnerable people – a clear violation of present legislation.
Four months after Vazrazhdane stated the draft, Kostadinov spoke from the Parliamentary tribune on March 29th, criticising his colleagues for their lack of interest in the document and the failure of the competent committees to review it.
According to the Bulgarian News Agency, he said that Vazrazhdane would once again campaign for the amendments’ adoption, bringing the proposed modifications up for consideration during the first plenary session in April.
Will Banning Advertising On Gambling Solve Any Problems
Lyuben Dilov, a member of the GERB-UDF party, expressed concerns about the proposed Gambling Act changes. According to Gambling News, Dilov went on to say that if the proposed modifications, which include a blanket ban on gambling advertising, are passed, these institutions will lose a significant source of revenue.
He was especially concerned about these reforms’ potentially harmful impact on municipal sporting institutions, which frequently rely on sponsorships and relationships with gambling enterprises for money and sponsorship.
Dilov disagreed with the idea of entirely prohibiting gambling advertisements. He stated that such a policy would simply address the symptoms of gambling addiction rather than the underlying reasons. In his opinion, the core causes of gambling addiction are linked to human nature and personal circumstances, which he feels should stay “untouched and unchanged”.
This implies that he believes people should be free to make their own decisions, including the decision to gamble at low-deposit casinos. Instead of implementing blanket restrictions, more focus should be placed on providing treatment and support to people suffering from addiction.
In essence, Dilov’s argument is about striking a balance between the necessity to protect vulnerable people from the evils of gambling and the potential economic consequences of severe laws, as well as addressing the main causes of gambling addiction.
Implications for the Gambling Industry in Bulgaria
During the parliamentary debate, Clement Shopov, a fellow Revival member, raised the issue of problem gambling, referring to it as ‘the quiet addiction’ due to the stigma associated with it. He listed other European countries, including the Netherlands, Belgium, and Italy, as examples of severe advertising regulations Bulgaria should try to emulate.
He emphasised that the goal of gambling ads, in his opinion, was not just to attract new customers at casinos with a minimum deposit but also to hold the attention of vulnerable people – who, it was argued, were the most profitable for the gambling industry.
Regarding the planned withdrawal changes, Shopov stated that consumers should be able to get quick deposits and winning settlements from land-based casinos up to a maximum of $/€5,000. He believes this will discourage clients from returning since banks can sometimes take several days to transfer payments.
Furthermore, Shopov advocated for eliminating gambling operator licencing fees in favour of a 15% tax levy on all deposits made, as was the case before 2014, when the Bulgarian Socialist Party was in power. He believes this will create a more equal and viable gambling industry in Bulgaria.
Another proposed change was to compel players to stay on the self-exclusion register for at least two years. This was done to address players’ ability to migrate between online casinos and get past bans.
The proposed amendments were rejected in a recent plenary session because the political majority abstained despite the support of a populist minority. However, the future of Bulgaria’s gambling business remains undetermined, as early elections will likely occur in June.
Implications for the Gambling Industry in Bulgaria
The suggested changes’ impact would be determined by the details of the carried-out amendments and their enforcement. However, these places could have major consequences, such as:
- Advertising Restrictions: Prohibiting gambling advertisements could significantly alter the marketing landscape for gambling firms, potentially diminishing their visibility and impacting customer acquisition efforts.
- Levy Adjustments: Adjustments to licensing taxes and gambling levies may pose financial challenges for gambling companies, with potential outcomes ranging from increased to decreased financial burdens.
- Regulatory Oversight: The transfer of regulatory oversight from the State Commission on Gambling to the National Revenue Agency could alter industry regulations, licence issue procedures, and compliance monitoring.
- Tax Revisions: Proposed changes would bolster fiscal revenue, particularly through equal taxation of land-based and online wagers on sports, horses, dogs, and random events, as stipulated in the amended Gambling Act.
- Impact on Sole Traders: Amendments could heighten financial requirements for small entities within the sector and restrict sole traders’ access to casino and gaming hall licenses, potentially impeding their participation in the industry.
- Self-Exclusion Measures: Improving the efficacy of the national self-exclusion registry could provide better protection for people who want to refrain from gambling activities. This falls in line with responsible gambling measures and could help minimise problem gambling.
- Increased Payouts: Doubling land-based win payouts from $/€2,500 to $/€5,000 may enhance the appeal of land-based gambling for players, yet could also foster increased gambling activity and, consequently, problem gambling occurrences.
Following the proposal’s defeat, all stakeholders are now intensely focused on the Bulgarian Parliament, waiting to see whether the proposal will be revised for re-submission or a new proposal will be created and submitted to the parliamentary floor for discussion. The verdict will undoubtedly affect the future of Bulgaria’s gambling and online casino industry.
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