Bulgaria to issue gambling licences by July
BTAMOGI founder expects licences to be awarded by in two months' time.
Following the passage of legislation in the Bulgarian parliament in March this year, the founder and honorary member Bulgarian Gaming Association (BTAMOGI) has revealed that the first licences are likely to be issued by 1 July.
Speaking to gambling news portal Yogonet, Rossi McKee explained the new regulatory framework includes provisions for online gambling operators for the first time. Under the terms of regulation, operators will have to pay tax on 17% of gross profit and have at least five years’ experience of operating in the market, as well as a physical presence in the country.
The bill, which was passed to the European Union (EU) in March last year, also mandates internet service providers (ISPs) to block access to unlicensed sites, and implements a blanket ban on all gambling advertising. The EU ratified the proposals later in 2011, saying: “The draft Law complies with European standards in this sphere and is consistent with the functioning of a common market.
“With the adoption of the new Law on Gambling, Bulgaria will meet EU requirements for the introduction of a clear regulatory environment for the trans-border provision of online games of chance in accordance with European standards. The draft Law will protect the legal rights and interests of citizens and will provide additional legal guarantees of protection of the interests of the state,” it explained in a statement released in June last year.
The legislation has drawn criticism from land-based operators, which will also be required to operate a minimum number of gambling machines in every venue they own, with companies suggesting this could lead to the potential closure of many of the country’s gaming halls. McKee admitted the market was likely to undergo “some restructuring” as these venues were shut, but claimed regulation would prompt land-based operators to look to establish online operations as an alternative.
At the time the IP-blocking move was criticised by Socialist Party MP Rumen Ovcharov, who called for a blacklist of unlicensed operators to be drawn up to push companies towards applying for licences rather than a total ban, but this was rejected by the ruling Citizens for European Development of Bulgaria party.
It follows a similar move by the Serbian Gaming Board in February that called for ISPs to block over 70 sites including Betfair, William Hill and bwin. The ban was supported by the Serbian Gaming Association (JAKTA), which has recently been announced as an associate member of BTAMOGI, ahead of a memorandum of understanding between Serbia, Montenegro, Croatia, Slovenia, Macedonia and Bosnia and Herzegovina to combat illegal gambling, expected to be signed this month.