Bulgarian Gambling Industry Predicted to Contribute BGN200m to 2024 Budget
Date: 2024-01-04 Author: Dima Zakharov Categories: CASINO
Bulgaria's 2024 Budget Gets a Boost
The Bulgarian Ministry of Finance has forecasted a windfall of BGN200 million for the nation's budget in 2024, thanks to the thriving gambling industry. This optimistic estimate has generated considerable attention, especially regarding the changes in taxation and licensing fees affecting the sector.
Taxation Changes for a Financial Boost
In the past two years, the gambling industry in Bulgaria has already contributed over BGN300 million in taxes and fees to the state budget. In a bid to further bolster this financial contribution, the government has implemented changes in the tax structure. However, these changes have not been without controversy.
The cost of obtaining a gambling license has surged by a staggering 300%, and the tax on income from gambling has also increased from 15% to 20%. These hikes have drawn criticism from the Association of the Gaming Industry in Bulgaria (AGIB), which considers them disproportionately high.
Minister Vassilev's Perspective
Minister of Finance Asen Vassilev, on the other hand, remains optimistic about the industry's growth prospects, emphasizing that the fiscal program is designed to support strong growth. Despite the controversy surrounding the tax increases, Vassilev believes that they will ultimately benefit Bulgaria's budget.
Enhanced Regulation in 2023
In 2023, Bulgaria tightened its grip on the gambling sector by establishing a new anti-money laundering unit under the National Revenue Agency (NRA). This move came in response to the Financial Action Task Force's (FATF) threats to intensify monitoring of Bulgarian gambling activities.
The AML unit introduced stringent requirements, including customer verification, document collection, and assessments of money laundering and terrorist financing risks. This regulatory step followed a 2020 money laundering risk assessment that identified vulnerabilities in various sectors.
The AML unit's placement within the NRA marked a significant shift in the regulation of gambling, as it took over responsibilities from the disbanded State Commission on Gambling in 2020.
