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Could Bulgaria’s advertising ban lead to an exodus of operators?
With a regulatory framework dating back to 1998, Bulgaria is one of the most mature and established gambling markets in Europe – but recent changes to regulation are placing the jurisdiction on shaky ground.
On 18 May this year, the government introduced a tough set of new regulatory measures for the gambling industry, including a near complete ban on advertising. Almost overnight, licensed operators in Bulgaria were barred from taking out ads on radio, television and in newspapers, as well as on online media websites.
Billboards were still permitted, but only if they were at least 300 metres away from schools, universities, playgrounds and other protected areas, with at least 10% of advertising space dedicated to a warning about the dangers of gambling. Advertising on buildings offering gambling services were also strictly controlled, with no more than 50 square metres or 20% of the whole facade allowed to display the advert.
Beyond the crackdown on advertising, MPs also voted to include certain social groups on the national self-exclusion register, including people receiving state support – effectively banning welfare recipients from gambling.
For land-based operators, a particularly odd clause in the law stipulated that gambling venues were no longer permitted in any town with a population under 10,000. Operators in breach of this rule – or located within 300 metres of a protected area like a school or student accommodation – were given three years to close.
Diversification is the only option for local brands
According to Mark Chakravarti, investments director at local operator Sportingwin, the advertising ban has led to a steep decline in revenue for Bulgaria-facing operators.
“Global research shows that when they have these bans put in place, especially limiting TV commercials, there is a drop of 20% revenue in the next two months,” he tells iGB. “I think it’s been very similar in the Bulgarian market.”
Since the ban was introduced back in May, for example, major market players like Sesame, 8888 and Winbet have all seen a double-digit dropoff in website traffic, equating to a similar drop in revenue. For Entain’s Bwin, which has been licensed in Bulgaria since 2016, traffic declined by as much as 17%.
When it comes to weathering the storm, operators like Sportingwin with regional know-how and expertise have proved to be more resilient than their international counterparts, facing a single- rather than a double-digit drop in revenue after the new law was introduced.
Who’s next to leave Bulgaria?
In contrast, major players like Betway and Betfair have chosen to exit the market in recent years, as the regulatory climate has made it more difficult for them to operate. Chakravarti believes that Bwin could be next.
Speaking on an Eastern European Gaming Summit panel on 22 November 2023, Bulgarian Gaming Association chair Angel Iribozov described regulatory changes in Bulgaria as a “perfect storm for operators” and “disastrous” for the market. And the storm already appears to be having a chilling effect on gaming companies active in the region.
“As a small local brand operator, we have a better understanding of the local market, we have better expertise, so we are able to change and adapt,” he said. “But we can see that the big operators that are foreign, international – they are not aware of the local markets, they don’t have the geomarket expertise,” he notes.
Recent clarifications from Bulgaria’s regulator, the National Revenue Agency (NRA), have opened up some new possibilities for online advertising. These limit the ban to online media companies who exercise editorial control over adverts, meaning many social media sites could be exempt from the rules.
However, this minor concession is unlikely to offer much relief while the TV ban – which Chakravarti says is most damaging to operators – remains strictly enforced.
“Around 5% of customers bring in 95% of the revenue,” he explains. “And not many of these come through social media.”
Nevertheless, Sportingwin is currently hedging its bets by exploring three new jurisdictions: the UK, Romania and Brazil. Having reached what it believes is a ceiling in the increasingly tough Bulgarian market, diversification seems to be the only option.
Increased hurdles for market entrants
For a long time, the regulated Bulgarian market was seen as an attractive option for gambling firms, largely thanks to its low corporation tax, EU membership and relatively low barriers to entry.
Currently, there are 15 licensed operators active in the market, including major local players like Efbet, Winbet and Palmsbet, as well as international brands like Bet365 and Bwin and newer market entrants like Sportingwin and Betmarket.
According to Yield Sec, which tracks online gambling activity in regulated markets, the impact of the advertising ban was felt in the market long before it came into force.
It estimates illegal operators accounted for around 87% of GGR in Bulgaria in 2023, netting around €3.8 billion in revenue compared to the regulated market’s €562 million in revenue. In the first half of 2024, in the lead-up to the new regulations, the illegal market share grew to 91%, according to Yield Sec estimates.
But while there have been attempts to crack down on the black market by blocking payments to unlicensed companies, hurdles for new licensees are also getting higher.
At the end of the last year, the government brought in a hike in the licence fee for new entrants to the online sports betting market – from BGN100,000 (€51,000) to BGN400,000 (€204,000).
From May, the amount of paid-in capital (investor contributions) required for a licence also rose from BGN500,000 (€255,000) to BGN750,000 (€383,000).
Politicians unwilling to hear industry’s concerns
This, along with the ever-changing regulatory landscape, is creating a “challenging” environment for newcomers, Chakravarti says. More worryingly, there seems to be little possibility of dialogue with politicians or the regulator.
“From my knowledge of Bulgaria, there are a lot of regulatory controls that keep changing and politicians are shifting the goalposts, which becomes very challenging for operators,” he explained.
In a particularly worrying sign for the industry, the advertising ban and accompanying regulations were voted through unanimously back in May, as Bulgaria’s parliamentary parties put aside their differences to present a united front against the sector.
With this top-down approach and ever-shifting regulation, operators in Bulgaria appear to be left with just two options: adapt or look elsewhere. As the coming months unfold and old licences expire, we’re sure to find out which of these roads they’ll take.
Finland sends gambling regulation to EC, licensed operators can offer horseracing betting
Finland is preparing to usher in competitive online gambling in January 2026 as it moves away from its legacy monopoly model and the monopoly operator Veikkaus competes against licensed operators for market share across both online sports betting and gaming.
The sector had been unsure where horseracing betting would lie in the regulation, as prior to re-regulation it was offered exclusively by the monopoly.
In a statement noting its final decision on horseracing betting, Finland’s ministry of the interior said state funding would support breeding and developments in the horse racing sector.
“In the future, through the state budget, support will be allocated to breeding, horse industry operator-specific advice and the development of the competition system,” the statement said.
Industry was unsure where horseracing betting would fall
Local consultant Jari Vähänen told iGB in July that there was no mention of whether horseracing betting would remain under the monopoly in the draft regulations. These were released on 3 July.
“It’s another story, on what will happen for horseracing, right now it’s on the monopoly side,” Vähänen said at the time. “I know the horseracing industry is lobbying heavily to move to the licence-based system. If that happens, I suppose that horseracing betting will be also allowed in retail salons.”
Then on 16 October, Mika Kuismanen, CEO of Finnish online gambling trade body Rahapeliala Ry, told iGB the ministry for the interior was in the final stages of preparing the legislation before sending it off to the EC.
He said horseracing betting and the launch date for the open market were the final two decisions left for the government, and a cross-party committee, to make.
The ministry for the interior confirmed in its statement that 1 January 2026 would remain the open sector’s launch date. “Finland’s gambling system will be reformed and opened to competition with a licence model no later than 1 January 2026,” it said.
On sending its regulation to the EC, the ministry said: “The purpose of the procedure is to get possible feedback from the Commission and other EU member states on the proposal’s consistency with EU legislation and the principles of free movement.
“The government’s proposal is to be presented to the parliament in the spring session of 2025.”
In July, the government said it aimed to present the final draft to parliament in February 2025. This os ahead of it launching the market fully in January 2027.
“We will likely have the law approved [by parliament] before midsummer [June 2025],” Kuismanen said previously.
Regulation more “business friendly” that earlier efforts
Commenting on the regulation, Antti Koivula, a legal advisor for Finland-based Legal Gaming, said while some commentators may remain disappointed, it does bode better for businesses than earlier proposals.
“Overall, the updated draft law is significantly more business-friendly compared to the initial draft released in July.” Koivula said. “As a lawyer, I have yet to encounter a law that satisfies all interest groups.”
Koivula noted how marketing restrictions have been eased, particularly with regard to brand marketing conducted offline. He also spoke about the benefits of moving parimutuel horse betting from the exclusive rights category to licensing.
However while Koivula said gross gaming revenue tax rate (GGR) remains the same, there is additional burden for some operators.
“The GGR-based annual supervision fee has been notably increased,” he said. “It effectively creates an additional tax burden that can exceed 2% at certain GGR levels.”
In addition, Koivula accepted certain “much-needed” clarifications were made in the explanatory notes of the legislation, there is still some level of uncertainty that will need to be address.
“Several much-needed clarifications were included in the explanatory notes, which is highly positive,” he said. “On the other hand, many aspects have been deferred to secondary legislation, leaving numerous questions unanswered for the time being.”
New Jersey gambling revenue up in April despite land-based decline
Total revenue was comfortably higher than $462.7m in April last year. However, the figure fell 3.0% short of the $526.6m reported in New Jersey in March this year.
Beginning with land-based casino, this remains the primary source of gambling revenue in the Garden State. However, the $216.8m generated in April is 6.3% behind $231.5m last year.
Physical slot machine revenue declined by 6.4% to $158.8m while land-based table games revenue also fell 6.1% to $58.1m.
Further igaming success for New Jersey
Turning to the igaming sector, the situation is very different. Revenue from all igaming in April hit $187.9m, up 18.2% year-on-year. This means igaming was only $28.9m behind the long-established land-based segment in April.
Some $185.6m of all igaming revenue was attributed to online slot games, with revenue here rising 18.5% to $185.6m. However, revenue from peer-to-peer poker slipped 0.5% to $2.3m.
As for individual operators. Golden Nugget leapt from third place to take top spot in New Jersey in April. Posting igaming revenue of $53.1m, this is 27.5% ahead of the previous year.
Resorts Digital retained second place with $47.5m, up 13.9% year-on-year. Borgata, which was top in March, followed in third on $44.1m, a rise of 2.2%.
Sports betting revenue almost doubles to $106.2m
Looking now to the sports betting market, revenue here jumped by 46.9% year-on-year to $106.2m. This is also 74.1% ahead of $61.0m in March this year.
The year-on-year revenue rise was helped by a 12.6% increase in handle, with this reaching $1.044bn in April. Player spend on online sports betting hit $1.01bn and retail sportsbooks $34.7m.
Meadowlands remains the runaway leader in the New Jersey sports betting market, posting $73.2m in revenue, up 92.2% on 2023. Meadowlands works with Flutter Entertainment-owned FanDuel.
Resorts Digital and partner DraftKings placed a distant second with $18.9m in revenue, down 6.6%. Borgata and BetMGM took third on $5.2m, a drop of 21.6%.
New Jersey gambling revenue surpasses $2.00bn in four months
As for the year-to-date, total gambling revenue in New Jersey hit $2.06bn in the four months to the end of April. This is 14.4% more than in the same period last year.
Land-based revenue was down 1.6% at $872.9m, with declines across both slots and table games.
Igaming revenue was 21.1% higher at $750.7m, driven by a 21.5% rise in slots revenue to $741.3m. In contrast, peer-to-peer poker revenue declined 3.7% to $9.4m
As for sports betting, the four-month total hit $434.2m. This is up 48.6% from $292.3m in 2023, with players spending a total of $5.17bn in the process.
SPELINSPEKTIONEN AIMS TO RESTRICT BETTING TO TOP SWEDISH FOOTBALL LEAGUES
Argentina’s La Rioja Province Eyes online gambling regulations
La Rioja is looking to become the second province in Argentina to regulate online gambling.
The state gambling regulator Administración Provincial de Juegos de Azar (Ajalar) has signed an agreement with its counterpart the Provincial Institute of Lottery and Casinos (IPLyC) of Misiones to develop a safe and responsible online gambling market for La Rioja.
The IPLyC of Misiones launched its own online betting and gaming site in December 2015 through Misionbet.com.ar, in defiance of the national lottery association La Asociación de Loterías, Quinielas y Casinos Estatales de Argentina (ALEA).
The site was taken offline in May 2017 on the orders of the Buenos Aires prosecutor following complaints from ALEA that the site accepted bets from Buenos Aires residents.
It resumed operations in January 2018 after a court overturned the ban and restricted its offering to players located in Misiones.
La Rioja’s gambling regulator said that it will leverage the experience of Misiones to develop iGaming regulations that allow adults in the province to play games from their mobile and desktop devices.
“It is important to note that we aim to innovate the development of gambling by integrating new information and communication technologies, which does not mean that there will be no limitations to prevent gambling,” said Ajalar administrator Ramón Vera.
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US gaming associations join forces to stamp out illegal gaming machines
The American Gaming Association (AGA) has partnered with the Association of Gaming Equipment Manufacturers (AGEM) to launch a new campaign to combat the unchecked spread of illegal gaming machines across the US.
The campaign will focus on providing state and local policymakers, law enforcement, and regulatory agencies with new resources and tools to stop the proliferation of unregulated gaming machines, targeting key states such as Pennsylvania, Missouri and Virginia where the spread of unregulated machines has been particularly extreme.
The two associations have released a fact sheet that distinguishes between the regulated casino, lottery and distributed gaming markets and the unregulated, highlighting the negative consequences of the spread of illegal machines.
This includes an increase in criminal activity and a lack of player protections, along with potential solutions to combat the problem by establishing small state and local government task forces.
“Stamping out the illegal market that threatens the safety of consumers will always be one of the gaming industry’s highest priorities,” said AGA president and CEO Bill Miller. “We are proud to work with the Association of Gaming Equipment Manufacturers and our fellow industry partners to combat the spread of illegal machines.
“The AGA is encouraged that policymakers in some states such as Virginia have begun to recognize the dangers of these machines and have taken recent legislative action toward outlawing them. Unfortunately, other jurisdictions where these machines have become pervasive may believe their only recourse is to regulate and tax them. Rewarding bad behavior is not the answer, and we hope our education efforts will make it clear that the only real solution is to stop the spread of these devices.”
AGEM executive director Marcus Prater commented: “The regulated gaming industry has rarely been more united on a singular issue and now we have a tool to address the misinformation and deception that unregulated machine companies use to confound law enforcement, the courts, and local citizens.
“The spread of these machines represents a serious threat to the overall regulated market that has invested billions in infrastructure while also creating thousands of jobs and substantial tax benefits in the communities they serve. Moreover, unregulated machines prey on confused players who see slot machine symbols and think they’re getting a fair chance when they absolutely are not.”
More than 20 gaming associations have joined the AGA and AGEM in opposition to the spread of illegal gaming, including the National Indian Gaming Association, the North American Association of State and Provincial Lotteries, the International Center for Responsible Gaming, the National Council on Problem Gambling, multiple state casino and tribal associations, and both of the leading independent gaming equipment test labs.
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New Spanish Gambling Regulations Released for Public Comment
Spain’s gambling regulator has launched a public consultation into new marketing and responsible gambling regulations.
Gambling regulator La Dirección General de Ordenación del Juego (DGOJ) published the Draft Royal Decree on Commercial Communications for Gambling activities on February 24, with public responses due to by March 16.
The new regulations are designed to strengthen the 2011 law under which Spain’s regulated online gaming market launched in 2012, since when gambling advertising has increased unabated to the point of sparking a public backlash.
The draft royal decree states that parliamentarians share the public’s concern and aim to balance the commercial interests of operators with adequate protections for consumers, particularly young people.
The 138-page document sets new responsible gambling requirements for operators and also introduces new rules for advertising, promotions and sponsorship.
The new marketing regulations apply to gambling operators and their affiliates and prohibit them from advertising using brands, trademarks or commercial images they do not own, as well as prohibiting any reference to another operator’s games or intellectual property without authorisation.
All advertising must be truthful and socially responsible so as not to promote excessive gambling, and the use of imagery such as luxury products or money will be considered a breach of the social responsibility requirement. Ads that encourage the viewer to share the message of the ad with others will also be deemed irresponsible.
In addition to general rules regarding responsible gambling messaging and preventing children from being exposed to gambling advertising, the draft royal decree sets specific rules by gambling activity and medium.
Sponsorship
Sponsorship agreements involving naming rights to sporting venues will be prohibited, as will any naming rights related to sports teams or any other entity outside the betting and gaming sector. Sponsorship of well-known figures and their use in marketing is also prohibited.
Promotions
No promotional offers will be allowed for new customers above €100 in value, with the draft also giving the regulator authority to set limits on the value of promotions to existing customers.
Bonuses must be shown separately from deposited funds in a player’s account and the bonus rules should not prevent players from withdrawing deposited funds, while loyalty bonuses can only be offered without requiring players to complete a number of bets or games for the bonus to be released.
Players who have increased their deposit limit must be excluded from promotions for a period of 30 days after the increase, and no promotions may be sent to players who have closed their account.
Free Games
Free games can only be offered to registered players who are logged in and must accurately replicate the chances of winning compared to the real-money version of the game so as not to give players a false impression.
Advertising
Radio and television advertising will only be allowed between 1am and 5am, although live sports broadcasts between 8pm and 5am may include ads which do not reference promotions or bonuses of any kind; calls to action such as ‘bet now’; or early cash-out or odds.
Operators must not use well-known characters in ads, real or fictional, with exceptions for characters made famous by the ad and narrators of live broadcasts, and all commercial communications must be immediately identifiable as such.
The advertising rules also set exemptions for pari-mutuel betting, instant lotteries and bingo, which may be advertised from 10pm to 6am in programming rated 18+.
The restrictions do not apply to lottery draw games, which may be advertised freely except for before, during and after programming primarily aimed at children.
Social Networks
Gambling promotions on Twitter and other social networks will also be restricted, with every post from an operator’s official account deemed to be a commercial communication, excluding graphical representations or retransmission of a sporting event.
Every fourth post must be a responsible gambling message and operators must make use of any tools available from social networks to prevent minors from following their accounts.
The draft decree also sets out the requirements for a comprehensive social responsibility policy, including problem gambling prevention mechanisms, self-exclusion and self-prohibition, and compliance.
The Draft Royal Decree on Commercial Communications for Gambling Activities is scheduled to come into force on July 1, 2020.
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