Bulgarian Law on gambling finally adopted

The most important part of the final version is the regulation of online gaming in Bulgaria and increased requirements for investment and control of gaming operators and manufacturers. 

The new gaming law is a step forward in modernizing the regulatory framework, which allows new technologies to be applied to gaming market in Bulgaria and furthermore will allow operators to offer more advanced and more innovative products to their customers. The legalization of remote gaming is an important change, which ranks Bulgaria among the countries regulating this activity and ensuring the quality of services to their customers. 

The new gaming law will have an affect on both the operators and manufacturers of gaming equipment, says Bulgarian Gaming Association (BTAMOGI). The high requirements for the operators who have to prove the investment and to increase the minimum number of gaming equipment will lead to the closure of number of gaming halls, which cannot meet these requirements. Meanwhile other operators will purchase new equipment in order to meet the requirements and this will make the market more dynamic during the next 18 months. 

The new gaming law also foresees increased requirements for the manufacturers. Such requirement is to prove the initial investments and recourses for the licensing. The process of development, implementation and manufacturing of products for the gaming industry is complicated and very responsible one, which requires insurability and security of the gaming equipment. This can be achieved only by investing in major developments and testing in independent laboratories. In addition to the above mentioned requirements for the manufacturers an increased control of the gaming equipment distribution is foreseen by the law. 

At this moment the market environment in Bulgaria sets such challenges for the operators, which stagnate market. This is dictated not only by fact that there are less recourses spent by the consumers, but also that the state and tax policy are rather restrictive to the business. Dramatically increase with over 70 % of the tax rates for gambling was voted two years ago, which led to the bending of the sector with over 40 %. The new Gaming Law sets new requirements for the investments, increased minimum of the gaming seats, etc., which will surely lead to further displacement in the industry. 

The legal operation of the online games and betting will also change the product supply on the market, where the players will have various options to choose from. These factors will definitely change the market, where operators will have to learn how to work in this new environment. What will be the effect depends on the right balance of the remaining regulations concerning gaming and bylaw requirements that are still to be announced.