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Bulgaria’s NRA Gives the Green Light to Gambling Ads on Social Media

Bulgaria’s NRA Gives the Green Light to Gambling Ads on Social Media

29/08/2024
This year, the Bulgarian government implemented strict rules related to banning gambling advertising. Nevertheless, the country’s National Revenue Agency (NRA) reviewed some parts of the Broadcasting Act and allowed the promotion of gaming projects on social media.

Brief History of Gambling in Bulgaria

Casino marketing in Bulgaria: history

The European state has always been friendly to the wagering segment. In 1979, a state-licensed lottery business opened its doors. In the early 90s, the country resorted to a Western pro-casino approach. By 1998, Bulgaria allowed and implemented regulations for most amusement verticals, including slots.

Vasil Bozhkov became one of the biggest names in this arena. A politician and an entrepreneur, he launched multiple ventures in the state by 2015. For instance, the businessman owned private lottery projects, making him the market leader.

Mr Bozhkov was among the most significant advertisers in the region. In 2020, his venues closed, and internet casino operators began the race to claim the frontrunner’s advertising space. In 2023, that niche accounted for about €85–90 million.

Changes in the Country’s Attitude

Earlier in 2024, the local government started to express concerns about the impact of iGaming on residents. On April 30th, the Parliament initiated the 2nd reading of a bill banning gambling marketing.

The document covered the following verticals:

  • sportsbooks;
  • digital casinos;
  • private lotteries;

The proposal was passed unanimously, and all 198 voting-present lawmakers supported the total prohibition of gaming advertisements. The only exception was related to the Bulgarian Sports Totalisator, a state lottery project. The business would continue working without changes since its earnings are allocated to various sporting campaigns and social initiatives.

Several groups in the country protested against severe promotion restrictions, considering the bill ill-advised and excessive. For instance, the owner of Sportal, a famous news portal, believes an advertising ban increases the activities of illegal operators, as the experience of other European countries shows. In Stilyan Shishkov’s opinion, such a situation obstructs the collection of gambling taxes and blocks the promotion of user protection.

Since licensed brands cannot legally target players, dishonest black-market operators may lure the audience away and cheat on them. Punters will continue searching for entertainment platforms, so there will be an increased chance of encountering fraudsters.

The governmental decision also hit the state’s advertising segment and reduced revenue:

  • in the media;
  • in stock exchanges;
  • on the Internet in general.

The sector had expanded and flourished for about 9 years, so the recent ban has led to dramatic changes. The bill affected both online and land-based gambling advertising operations. Ground facilities can still promote shows, concerts, buffets, and other gaming-unrelated activities, but this would not generate previous-scale profits.

Easing of Restrictions from the NRA

Gambling ads on social media in Bulgaria

Due to the bill’s controversy, the agency had to review it and clarify some parts. The body stated that the Broadcasting Act cannot cover media and internet communications so extensively. The institution’s Director General noted that social networks are not subject to the mentioned regulation. In Rumen Spetsov’s opinion, the draft law has no authority to ban those platforms.

Although major advertising channels are still unavailable to gambling operators, they can legally resort to international media projects.

Among them are:

  • TikTok;
  • YouTube;
  • Twitter/X;
  • Facebook;
  • Instagram.

Such a situation can lead to a significant rise in mobile gaming. Casino and sportsbook owners can minimise losses in this way. Meanwhile, the country will be able to combat fraudulent activities that hazard player safety.

The Gaminator company offers top-notch business protection and marketing instruments for sale and rent.

Our catalogue also features gambling systems, CRM tools, casino slots from leading game providers, compliance programs, payment services, and more. To get help with the installation of products, feel free to contact our managers.

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Artur Zimnij
Author
Artur Zimnij
Gambling business specialist
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