Bulgaria set to abolish blacklist as fresh tax regime nears
Bill amendments tabled in parliament propose an end to 160-strong blacklist as country prepares for GGR tax
Bulgaria looks set to open its doors to overseas egaming operators with a list of amendments made to its licensing and taxation processes including the scrapping of its domain blacklist.
The Bulgarian government is considering alterations to its online gambling tax regime and the amendments, tabled in parliament this week, would closer align the country’s legislation with those of other European nations.
Bulgaria’s blacklist, which has been extended to include around 160 domains owned by the likes of bet365, Betfair, Ladbrokes and William Hill, would be abolished as the country looks to tempt more operators into applying for a licence.
The main amendment proposes changes to the proposed taxation of revenues, replacing its current 15% tax on stakes with a one-off licensing fee of 50,000 and a 20% tax on gross gaming revenue (GGR).
Remote Gambling Association chief executive Clive Hawkswood said he was pleased with the progress, particularly regarding technical standards.
“It’s a huge step forward and if the proposals are nailed down, Bulgaria could become a model for the rest of Eastern Europe,” he added.
At present, Bulgaria has just one licensed operator after the State Gambling Commission awarded the country’s first online sports betting licence to Malta-based Eurofootball in September. Some operators have criticised the current regime, claiming it makes operating under a licence in the country unprofitable.
Nadya Hambach, an attorney at Bulgarian law firm Velchev & Co, said the amendments were a positive and promising step for online gaming in Bulgaria.
“Changing the tax base from stakes to GGR could lead to successful legal work of the operators and therefore also bring significant income to the state budget,” she said.
Some provisions have, however, been criticised, with the removal of the blacklist considered to be a dilution of the powers used to stop illegal operators.
“The draft has some controversial provisions, which would be interpreted as weakening the state’s authority and hence making the adoption of the amendments in the Parliament more difficult,” Hambach said.
“Main of them is removing of blacklisting as a sanction for illegal online operations. It is true that such blocking could be easily overwhelmed by technical means, but it still underlines state’s position and is still a negative image obstacle for the operators, who work illegally,” she added.