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Bulgaria’s gambling market, one of Europe’s most mature regulatory landscapes, is grappling with unprecedented challenges following the introduction of stringent advertising restrictions in May 2023. These measures have drastically affected operator revenues and prompted some to reconsider their future in the market.
The new regulations, implemented on May 18, ban gambling advertising on television, radio, newspapers, and online media. Billboards are permitted but must be positioned at least 300 meters from schools and other protected areas, with 10% of the ad space devoted to warnings about gambling risks. For land-based operators, additional restrictions prevent gambling venues from operating in towns with fewer than 10,000 residents or within 300 meters of schools and universities.
These restrictions have had an immediate impact on licensed operators. Major players like Winbet, Sesame, and 8888 reported double-digit drops in website traffic, with Entain’s Bwin seeing a 17% decline.
The advertising ban has hit international operators harder than local brands due to their limited understanding of the Bulgarian market. Local operators like Sportingwin, which have adapted more effectively, reported smaller revenue declines. However, the larger picture remains bleak.
Some global operators, including Betway and Betfair, have already exited the market, and industry experts predict others may follow. Bulgarian Gaming Association chair Angel Iribozov described the situation as a “perfect storm,” citing increasing regulatory hurdles and limited avenues for dialogue with authorities.
While licensed operators face mounting difficulties, the illegal gambling market has flourished. Yield Sec reports that in 2023, unlicensed operators accounted for 87% of the market's gross gaming revenue (GGR), generating €3.8 billion compared to €562 million from regulated operators. By mid-2024, the black market's share had risen to 91%.
Efforts to curb illegal gambling, such as payment blocking measures, have proven insufficient. Simultaneously, new regulations have made entry into the legal market more difficult, with licensing fees quadrupling and capital requirements increasing significantly.
Operators like Sportingwin are exploring diversification strategies, with plans to enter the UK, Romanian, and Brazilian markets. Meanwhile, the industry awaits potential relief through clarified rules on online advertising, which may exclude certain social media platforms from the ban.
For now, Bulgaria’s gambling operators face a stark choice: adapt to a challenging regulatory environment or look for opportunities elsewhere. As licenses expire and the market adjusts to new realities, the coming months will reveal the long-term impact of these sweeping changes.
Source: IGB
