Bulgaria Puts Gambling Affiliates Into Budget Tax Net
This move is part of a broader fiscal package now going through Bulgaria’s National Assembly. The budget draft reflects a deficit of 5.7%, which comes to around €7.2bn, with projected revenue of €49.5bn and expenditure of €56.8bn.
Budget Gap Drives the Proposal
Against this background, gambling affiliates have become a target for additional tax revenue. The government is planning to introduce a licensing system for companies that market licensed gambling operators. It is also seeking to impose a two-part levy system.
The plan proposes that affiliates should pay an annual fixed fee of €6,000. They would also be required to pay a 10% tax on commissions on gambling promotion. Officials estimate that the measure could raise about €100m a year.
Affiliate Marketing Comes Under Review
The proposal would change how Bulgaria taxes a part of the gambling supply chain that sits outside direct betting operations. While affiliates do not take bets, they assist the operators in customer acquisition through comparison sites, traffic deals, content, media buying, and other promotional channels.
While the fixed fee may not be a problem for large affiliates, the 10% commission levy may prove challenging. It would affect performance-based revenue. For smaller publishers, the annual fee alone could mean reconsideration of whether Bulgaria is still worth serving.
In addition, the proposal also gives the state a clearer route to monitor gambling promotion. A license requirement would make affiliates easier to identify and tax.
Politics and Advertising Add Pressure
The budget delay comes after months of political instability. The country was under a caretaker government until former president Rumen Radev’s Progressive Bulgaria secured an absolute parliamentary majority in April.
The gambling file is also moving to the regulator level. Alexander Popov has stepped down from his job of overseeing gambling policy at the National Revenue Agency. Media in Bulgaria suggest that Ginka Panaretova might fill the vacant position, which could be controversial due to her past ties to operator InBet.
The tax plan comes at a time when gambling advertising is still a sensitive topic in the country. Bulgaria banned gambling ads on television, radio, and some public spaces in 2024. Critics recently claimed that Bulgarian National Television aired gambling-linked promotions during the FIFA World Cup broadcasts. BNT said the clips were sponsorship announcements and did not breach the rules.
Children’s rights campaigners are seeking stricter rules, including bans on product placement and the use of gambling company trademarks in sports events.
What the Market Should Watch
The key issue here is how wide the scope of affiliate activity is for Bulgaria. A strict interpretation would affect traditional gambling lead-generation partners. A broad interpretation could also raise questions for media brands, influencers, SEO publishers, and sponsorship-linked content.
Sofia wants gambling promotion to be visible, licensed, and taxable. The next question is how broadly lawmakers define affiliate activity, as that will decide whether the rules hit only classic lead-generation partners or a wider group of media and sponsorship-linked businesses.