A significant shift is brewing in the world of gambling taxation, beginning with Bulgaria’s bold move to increase levies on operators. Starting January 1, 2026, the tax rate will jump from 20% to 25%, a change poised to reshape the financial landscape for those running lotteries, online betting platforms, and bingo halls.
This isn’t simply a minor adjustment; it’s a calculated strategy to bolster Bulgaria’s national budget. Officials anticipate an influx of approximately €32 million ($37 million) annually, generated by the 5% increase in license fees. The current system involves a base fee, coupled with a 20% charge based on the difference between winnings and stakes.
The ripple effects of Bulgaria’s decision are already being felt across Europe, particularly in the United Kingdom. All eyes are now on the UK’s upcoming budget announcement on November 26th, as Chancellor Rachael Reeves prepares a potential overhaul of gambling taxes.
The proposed changes in the UK are even more dramatic than those in Bulgaria. Reeves is considering raising the General Betting Duty on sports betting to 30%, a substantial leap from the current 15%. This increase, however, will notably exclude horse racing, a decision driven by a desire to focus on online casino revenue.
While the potential revenue boost – estimated at £4 billion ($5 billion) – is undeniably attractive, the implications for the UK gambling industry are deeply concerning. Industry leaders warn of potentially devastating consequences, including widespread job losses and business closures.
Betfred, a major player in the UK betting scene, has issued a stark warning: a 30% tax could force the closure of all 1,287 of its retail locations. Founder Fred Done, a veteran of nearly six decades in the industry, has declared these proposed tax hikes the “biggest threat” the sector has ever faced.
The debate highlights a critical tension: the desire for increased government revenue versus the potential damage to a thriving industry and the livelihoods of those it employs. The coming weeks will be crucial as the UK navigates this complex financial and economic challenge.
