The State of Online Gambling Legislation in Bulgaria

Located in south Eastern Europe, Bulgaria has not always had a good relationship with gambling. In 1946, a year after World War II ended, Bulgaria became a ' people's republic', or in other words, a Communist state. From then until the late 1980s most things were restricted in the country including gambling. But like the Soviet Union, with the fall of Communism gambling made a big comeback in Bulgaria, although mostly underground as it was still illegal.

However, in 1993 the Bulgarian government took the forward-thinking step of legalizing casinos, bingo halls, as well as a government-owned and operated lottery company. Then in 1998 the Bulgarian government tightened up its gambling laws, ensuring that all casino and gambling operators needed licenses to operate in the country. As a result, today Bulgaria boasts a 'well-oiled' gambling industry, boasting around 20 large casinos and 50 bingo halls.

With regards to gambling online, it was only in 2007 that the Bulgarian government began to address the issue of online gambling. Up until then Bulgarian gamblers who wanted to gamble online signed up with offshore online gambling sites. But seeing millions upon millions in online gambling revenues leaving the country, the Bulgarian government decided to take action.

And in 2008, the Bulgarian government decided to legalize, regulate and tax the popular internet pastime. However, its hefty 10 percent tax on online gambling profits left the country's online gambling operators and the European Union (EU) steaming. Undaunted, however, the Bulgarian government has continued to run its online gambling industry its own way.

At the end of 2009 it even announced that it was going to raise the revenue tax to as much as 15 percent. In response, many of Bulgaria's online gambling firms - many already hard-hit by the global economic recession - told the government that the new taxes would put many operators out of business. However, up until now the government seems unmoved and will probably introduce the new tax regardless.

 Posted by Ryan D Jaeger at 08:51 on 22 January 2010