Bulgaria Enforces New Affiliate Licensing and Dual-Tax Regime to Integrate Grey Market Activity

Bulgaria’s affiliate licensing framework entered into full force on 1 August 2026, with the National Revenue Agency (NRA) now requiring all relevant companies to obtain a licence and maintain compliance.

The regulatory changes were introduced simultaneously with the approval of the 2026 National Budget. They address previous omissions in the Gambling Act regarding affiliates. Deputy Finance Minister Luydmila Petkova indicated that the measures form part of a broader effort to shift 40% of the gambling industry from the grey sector into the taxable economy.

Application and Approval Process

Affected companies must submit a declaration form issued by the Gambling Office of the NRA. This requires comprehensive details on the affiliate’s web pages, mobile applications, linked social media accounts, and any associated video or streaming platforms.

The NRA can approve activities on a one-off basis, for periods of less than five years, or via a standard five-year licence. Affiliates engaged in commercial partnerships as of 1 August 2026 were granted a transition window until 15 August to file their applications.

Entities based outside Bulgaria must designate an authorised representative holding a local address. This representative must possess authority to conclude contracts for the affiliate and to appear before state bodies on its behalf.

Fiscal Measures and Compliance Enforcement

Petkova disclosed that affiliates currently produce between BGN 450-500m (£219m) in annual commissions, all of which remain untaxed. The updated regime imposes a two-pronged tax consisting of a fixed €6,000 annual levy coupled with a 10% charge on performance-based commissions, determined by metrics including new registered accounts and player deposits.

The Ministry of Finance projects additional tax receipts of €100m in 2026, scaling up to €150m in 2027, as reported by SBC News. These figures reflect the anticipated yield from bringing affiliate activity into the regulated sphere.

Unlicensed affiliates will be subject to blocking orders. The NRA holds powers to direct banks and payment service providers to interrupt outgoing payments to non-compliant operators.

These steps mark a decisive intervention in Bulgaria’s gambling ecosystem. Regulators will now monitor uptake of the new licensing route and the corresponding revenue inflows over the balance of 2026.

Reporting: SBC News

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