2024-02-13 08:51:34
The amendment to the law creates parity between online betting and gaming outlets
The change in gambling taxation recently made by Parliament will increase revenue for the budget for at least two reasons. The first is that the two-part fee introduced obliges anyone seeking a license, or an operator who has one, to pay a fee to obtain it or to maintain it.
However, the most important benefit of the amendment is that it creates a level playing field between land-based and online betting. This was explained to “24 Chasa” by Alexander Popov, Director of the Gambling Control Directorate at the National Revenue Agency. Ground betting is betting on the results of matches and other competitions that take place in designated venues.
Until December 2023, different taxation was foreseen for the same activity depending on how the service is provided – through land points or online. It was a common practice for an operator who has points – owned or leased – not to actually carry out activities in them, but simply
to direct players to its website,
for which a license has been issued, said Popov.
This, in turn, risks customers being directed to services provided by casinos, which, in addition to being absolutely prohibited, is also risky for them. After the change, it is expected that more such points will actually start working or be closed.
By increasing the fees for each type of license 3 and 4 times, the Ministry of Finance is actually correcting a loophole in the 2020 law, which in practice allowed each of the fees to exist legally, but not be collected or partially collected. After the change, which came into effect on January 1, this loophole is now closed.
“After the amendment, the control over online gambling and land-based gambling gets an option to be even tighter and more effective, which will undoubtedly guarantee more revenue,” Popov is categorical.
Since the beginning of this year, gambling operators have been taxed twice – once with a fee for their license and a second time with a percentage of the difference between bets collected and winnings paid out.
Operators who want a license must pay a one-time payment of BGN 300,000. After that, they are taxed at 20% on the difference between the value of the bets received and the winnings paid out. Prior to these changes, there was only a 15% fee on the value of bets placed on each game.
Last week, ITN MPs claimed that the change
gave a tax holiday to gambling
In a statement on behalf of the parliamentary group, they described the changes as lobbying.
According to Grozdan Karadjov from ITN, after the changes, new betting points were opened in villages and palanquins. And he pointed out as an example that for just one issued license there are already more than 100 points opened.
However, the information was refuted by the revenue agency, according to which there was no increase in license requests for the organization of gambling games after the changes.