September 2024 – As we have previously reported, just a few months ago Bulgaria introduced major changes to the regulations governing organisers of gambling games and activities (including service providers connected with the gambling industry) and gambling advertisements (see the original article here). These changes have recently been further clarified with a decision of the regulator and additional proposed amendments in relevant rules. Below are some key updates:
Online advertising
A recent decision of the National Revenue Agency (“NRA”) clarifies that the legislative changes were intended to restrict gambling advertisements to Bulgarian media outlets and their websites, rather than across the entire Internet. This means, for example, that social networks are more likely to fall outside the gambling advertising restrictions. However, the NRA has not definitively excluded them from the scope of the gambling advertisements ban as it indicates that a decision should be taken on a case-by-case basis.
The main criterion outlined by the regulator is whether the respective platform is a media – in essence, who has editorial responsibility, i.e. if the social network only distributes the content or also edits it. The NRA's reasoning to rather exempt some platforms, such as social networks, from the advertising ban is based on several criteria, but among the most important seem to be:
- Content modification: they do not edit the content shared by their users;
- Visibility: the content is only visible to the users of the platform; and
- User choice: users can decide whether or not to engage with gambling advertisements.
Although, the NRA’s decision is rather focused on social networks, podcasts and video-sharing platforms, it could be assumed that other stakeholders could also benefit (at least to some extent) from the decision. Such interested parties may include affiliate marketing platforms and online market places, of course, to the extent they meet and follow the criteria outlined by the NRA, including not to violate general advertisement restrictions (e.g. not allowing advertisements from unlicensed gambling operators).
However, given, among other things, the many nuances and the somewhat vague language used in the NRA’s decision, allowing for varied interpretations of the specific requirements to be met, relevant stakeholders must carefully asses their particular situation and decide on their operations on the Bulgarian market (e.g. whether to re-open the market).
Changes in organising gambling games
- Distance requirements: The amendments in the gambling regulations in May 2024 imposed a requirement that billboards and casinos are located at least 300 meters away from protected locations, such as educational institutions and playgrounds. Newly proposed changes offer specific guidelines on how to measure the distance between gambling establishments or billboard advertisements and the protected locations.
- Online gambling requirements: Other set of proposed key legislative updates include: (i) reporting of data in relation to cancelled events to the NRA; (ii) steps for approval of automated reporting systems; and (iii) more clearly defined data submission protocols.
The recent updates and clarifications to Bulgaria's gambling regulations aim to provide guidelines on advertising restrictions and further specify the rules governing gambling activities, and compliance standards.
Please note that this article is for informational purposes only and does not serve as legal advice. For further details on this topic, please reach out to Georgi Kanev, Managing Associate, at .