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Bulgaria’s overhaul of gambling regulations

Lea Hogg May 1, 2024

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Bulgaria’s overhaul of gambling regulations

Yesterday an emergency meeting was convened by the Budget and Finance Commission of Bulgaria. The meeting, attended by Members of Parliament (MPs), was held to discuss and approve the latest amendments to Bulgaria’s Gambling Act. These amendments, co-authored by Yordan Tsonev of the centrist DPS party (pictured above), and Temenuzhka Petkova of the populist GERB party, had recently passed their first reading and were now undergoing a second reading.

The next step in the legislative process is for the newly amended text to be presented to the National Assembly for a final vote. As of the latest update, the law has been unanimously approved by MPs and is set to be enacted on 3 May.

The 10,000 Rule

One of the most notable changes to the initial draft was the introduction of what has been termed the “10,000 rule”. This rule prohibits the establishment of gambling venues in areas with a population of up to 10,000 citizens. This is a significant increase from the initial draft, which had set the limit at 5,000 citizens.

Dimo Drenchev, a representative of the nationalist Vazrazhdane party, requested additional information from the Ministry of Finance regarding the potential impact of this restriction. Specifically, he sought details on the number of venue closures and job losses that could result from the implementation of this rule.

In response, Irena Hristova, Director of Tax Policy to the Ministry of Finance, revealed that there are currently 104 land-based gambling venues located in towns with fewer than 10,000 inhabitants. However, she was unable to provide an estimate of the number of job losses that could result from the new proposals, stating that this figure would be subject to further discussions with the Ministry of Labour and Social Politics.

The revised proposal also includes a clause defining the minimum distance of land-based gambling venues from places frequented by vulnerable groups, particularly children. The proposed distance, which will be included in the final vote, is set at 300 metres away from community centres, public libraries, student accommodations, and children’s playgrounds.

The issue of gambling advertisements was also a key point of discussion during the meeting. Currently, licensed operators in the country voluntarily include warnings about gambling harm in their promotional messages. However, the revised proposal mandates that 10 percent of all advertising space be dedicated to such warnings.

In addition, Tsonev has proposed a blanket ban on gambling advertisements across radio, TV, print, and online publishing platforms. This proposal remains unchanged from the initial draft, indicating a strong commitment to promoting responsible gambling practices in Bulgaria.

Opposition to proposed amendments

There has been opposition to the proposed amendments to Bulgaria’s Gambling Act. The amendments, which were put forward by Kostadin Kostadinov of the Vazrazhdane party, were defeated with a vote of 67-29, despite having support from BSP for Bulgaria and the populist party “There Is Such a People”.

During the plenary session, a minority of populist representatives voted in favor of the proposed amendments, while the political majority chose to abstain. As a result, the amendments were rejected, and the proposed legislation did not move forward.

Voices of dissent from GERB-UDF warned against the potentially negative effects on municipal sporting institutions, arguing that such measures would merely scratch the surface of the root causes of addiction.

Dimo Drenchev, from the nationalist Vazrazhdane party, requested the Ministry of Finance to provide more information on the number of venue closures and job losses that the restriction would lead to. This suggests that there were concerns about the potential economic impact of the amendments.

While the proposed amendments were intended to curb the pervasive influence of gambling advertisements and protect vulnerable groups, they faced opposition due to concerns about their potential impact on the economy and the effectiveness of the measures in addressing the root causes of addiction. For more information, you may want to look into the matter further.

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