Bulgaria Raises Its Gambling Tax to 25% to Make Up for Deficits

The budget deficit and mounting fiscal pressures led to a 25% gambling tax hike for Bulgarian gambling.

As of January 2026, we can expect Bulgaria’s gambling tax to rise from 20% to 25% in gross gaming revenue (GGR).

While the year has been filled with great changes, enhancements and benefits for players, it appears the same can not be said for operators.

CasinoWow explores the big “why” behind the large tax hike that is impacting online casinos and betting sites.

Why the sudden hike?

Bulgarian gambling regulations are changing, as the country is increasing the gambling tax from 20% to 25% for online and land-based gambling operators.

The main reason behind the tax hike is to hopefully reduce the massive budget deficit of €3.86 billion.

With the gambling tax hike, the aim is to bring in an approximate €56 million extra per year. While it isn’t exactly a huge amount in comparison to the deficit, it does help to bring down the total.

The country appears to be following the European trends to raise taxes.

Recently, Romania and the Netherlands have enacted similar changes, as Romania raised its online tax from 21% to 27% in the middle of last year. The Netherlands is expected to put a 37.8% tax rate in place at the start of 2026.

The new tax will be applicable to all licensed gambling operators, which includes any sports betting, lottery, random event wagering, and online betting action.

The rate is still moderate, but it does add Bulgaria to the list of more heavily taxed gambling markets.

What industry experts have to say

According to industry analysts, the hikes are all part of a post-pandemic economic recovery effort. While also considering inflation pressures and the growing political interest in tapping into gambling as a resource.

The Bulgarian budget doesn’t have any additional income allocated to specific social or regulatory programs or responsible play efforts.

These contribute to the belief that the 5% increase will make a dent in Bulgaria’s budget deficit. Based on figures, GGR was at €562 million in 2023, and if one assumes there are similar figures from land-based operators, it would add the total GGR to €1.1 billion.

Under the 20% tax regime, that would yield around €225 million in revenue. With the increased tax rate, it would be around €281 million. Bringing in €56 million extra, covering about 1.4% of the national deficit.

Bulgarian officials have not publicly made any comment regarding the tax hike, while stakeholders are concerned about its impact on innovation and investment within the market.

Impact on players and industry

While this is an attempt to ease the pressures for the country, the biggest impact will be on the gambling industry. Considering the tax is levied on gross revenue, that means operators cannot deduct any expenses, including wagers, technology costs, or even marketing.

Even the smallest tax hikes in this case would make a big difference, especially for casinos in terms of profitability.

What this likely means for players is that 2026 will have fewer bonuses and promotions, as operators will have to cut back to save money. There will also be less advertising and sponsorship.

Not to mention, companies may drag their feet in launching new games or products, considering the profit size is shrinking.

More importantly, this may push players towards illegal casinos and unlicensed sites, which have their own risks, as these sites have no guarantee or protection in place for their players.

What the results of this tax hike will be remains to be seen, but rest assured that CasinoWow will keep you up to date with the latest news as it happens.

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By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

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Last updated: November 26, 2025

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Bulgaria raises its gambling tax to 25% to make up for deficits

Why the sudden hike?

What industry experts have to say