Bulgaria Considers Long-Term Concession Model for State Lottery

Bulgaria Considers Long-Term Concession Model for State Lottery

The discussion around Bulgaria's state-run lottery and sports betting operation has entered another decisive phase, with lawmakers advancing proposals that would open the door to a long-term concession of the Bulgarian Sports Totalizator. The initiative, introduced by representatives of the governing majority, seeks to reshape a sector that has undergone several regulatory turns in recent years. What is now being debated is whether a private operator should assume control over an activity that has been held exclusively by the state since 2020.

The proposal was submitted to the heads of the Budget and Finance Committee and the National Assembly at the start of the week. It is structured as an amendment to the Gambling Act through the transitional and final provisions of the State Budget Law. Its supporters argue that the current model has not met expectations and that introducing a concession could offer greater stability and predictability. A second reading is scheduled for November 28, setting the stage for a rapid political assessment of the idea.

The members behind the initiative, Kostadin Angelov from GERB, Dragomir Stoynev from BSP, and Yordan Tsonev representing DPS–New Beginning, have presented the measure as an attempt to address long-standing revenue concerns. Since the state took over the monopoly in 2020, the Bulgarian Sports Totalizator has struggled to sustain the revenue levels previously reported by private operators. The figures have repeatedly fallen short of projections, raising questions about whether the state is the appropriate mechanism for operating the market's most recognisable lottery product.

Data from 2023 and 2024 illustrates this gap. In 2023, the Bulgarian Sports Totalizator generated BGN 170.034 million, falling below the target of BGN 190 million. The following year told a similar story, with BGN 182.640 million recorded against a target of BGN 188.701 million. The shortfall has become part of a larger debate over channelisation, operator efficiency, and the ability of a state entity to compete with digital-first private companies that now dominate the wider gambling sector.

The proposal outlines a structured process for awarding the concession. If adopted, a public call for bids would need to be issued no later than March 31, 2026. Only companies registered in Bulgaria, or international companies with a physical presence in the country, would be allowed to participate. The future concession would run for no less than fifteen years, effectively placing the lottery and sports betting operations under private management for an entire market cycle.

Whoever wins the tender would assume control over the Bulgarian Sports Totalizator's operational assets. That includes outlets, systems, equipment, and intellectual property. Oversight responsibilities would shift to the Minister of Youth and Sports, who would award the concession and monitor performance throughout the contract's duration. Once the concession becomes active, the Bulgarian Sports Totalizator would no longer conduct gambling activities; existing tickets, coupons, and related materials issued by the state entity would be phased out and destroyed.

The financial structure is also defined in the draft. Ten percent of the concessionaire's corporate tax contributions would support the Ministry of Youth and Sports, with a portion directed to the National Culture Fund. Meanwhile, 30 percent of the concession fee would be allocated to sports clubs and federations. According to its authors, the proposal aims to create a stable revenue stream for public initiatives, particularly in sports and culture.

However, the initiative is not without controversy. Critics have pointed out that the state lottery was only recently returned to state control following the revocation of licences linked to businessman Vasil Bozhkov. That shift came after allegations of irregularities and claims that members of the former State Commission on Gambling accepted improper payments. In response to those developments, gambling regulation was reassigned to the Bulgarian Revenue Agency in 2020.

The current proposal, therefore, reopens a debate that many believed had been settled only a few years ago. Opponents of the reform argue that the measure introduces significant political risk. Ivaylo Mirchev of Yes, Bulgaria, which is part of the WCC–DB coalition, has been among the most vocal critics. He claims the proposal primarily serves the political and economic interests of DPS–New Beginning. Mirchev has also raised concerns about potential conflicts of interest, citing the past leadership of the Bulgarian Sports Totalizator by Irena Krasteva, the mother of DPS figure Delyan Peevski. According to him, efforts to establish a parliamentary commission to investigate related matters were blocked by GERB MPs.

Those supporting the reform counter that the Bulgarian Sports Totalizator lacks the financial strength and operational expertise to compete in the modern online gambling environment. Their position is that the concession model would reintroduce competition, raise channelisation rates, and secure a more predictable flow of funds for sports and culture. Opponents respond that a concession risks returning influence to groups that previously dominated the sector.