Bulgaria gambling operators are enjoying lower taxes and higher gambling activities, according to one source. Gambling operators in Bulgaria managed to earn $1.9 billion in 2017 for overall revenue, which is double what occurred just a decade ago.
The Center of the Study of Democracy provided data from Moody’s Amadeus to show that several of the gaming operators are gaining good tax benefits by being licensed in Bulgaria. The group said licensed operators paid $111.02 million in taxes for 2016 and $90.32 million in 2017.
Using tobacco as a way to show how significant gambling is, one analyst said tobacco is a big earner for Bulgaria, with VAT at about 3 billion levs. This also includes excise duties. Gambling showed BGN 177 million for 2016 with regards to the taxes paid.
Bulgaria gambling operators are enjoying the revised gambling laws that the government launched in 2013. Five years ago, the legislation reduced the tax burden gambling operators felt, as long as they were properly licensed. The laws did not subject the gaming companies to an alternative tax that would make it difficult to continue operating their companies.
Taxes are also not the same for all gambling companies. The number of machines they have taxes Land-based locations. Remote or online operators have a 20 percent levy. For foreign operators, the licensing fee is just under $63,000.
Government Gambling Regulations
Before the regulations changed, online gambling locations had to pay 15 percent of their turnover. The new taxation laws are seen as more favorable than many countries, which has also created an increase in companies licensing in Bulgaria. They have relocated their headquarters.
You might be familiar with a similar situation in Malta. When the UK started tightening their laws and taxes, many companies fled the UK, putting their headquarters in Malta and other more relaxed countries to keep making profits with lower taxes.
According to Moody’s Amadeus 1,327, gambling and betting companies are registered and licensed through Bulgaria. Data also shows Vasil Bozhkov, a gambling mogul, has seen the most profits. Bozhkov owns New Gaming SE, National Lottery SA, and Eurobet limited. Both New Gaming and National Lottery had a turnover of $108.5 million and $18.76 million, respectively, for 2017. The total turnover was $362.97 million according to the statistics provided by data analysts.
Bulgaria may need to rethink their tax laws or simply enjoy the correct thought. If you have lower, more fair prices, you make more. The higher you increase your costs, the fewer people can afford to purchase things. It seems to hold true.