Bulgaria's gambling law reform has been the subject of much discussion in recent years, with online gambling a particular priority for the jurisdiction. New taxation rates will come into effect next year.

The Bulgarian government has raised fears that huge amounts of cash are flowing out of the country because of residents playing illegal internet gambling sites.

GamblingCompliance spoke exclusively with the chairman of Bulgaria’s State Commission on Gambling about upcoming changes to the Eastern European country’s regulatory regime. While EU integration has already brought with it new opportunities for international gaming operators, more formal regulation of remote gambling activities is now firmly on the menu.

The Bulgarian government has imposed a 15 percent tax rate on all gambling activities in the country in a shock move described as “genocide” by one of the industry’s leading businessmen.

While Estonia's first online gambling licence has been awarded this year, terrestrial developments have seen further guidance published on the registration of gaming machines.

Although Bulgarian legislation appears welcoming towards EU-based betting operators, the reality is that breaking into the market has proved to be extremely difficult.

John Beyrle, the United States' ambassador in Sofia has criticized Bulgaria’s plans to modernise its betting tax, suggesting on Bulgarian TV that the proposals are another way for money to be siphoned to shadowy business interests in the country. His intervention prompted a response from the country’s president that he would veto the amendments.

A former Bulgarian prime minister and leader of one of the major parties has called for a total ban on gambling in the country.

Estonian officials are confident of enacting sweeping new gambling legislation in January of next year after a draft bill received final approval in the Estonian Parliament last week. The legislation is likely to trigger consolidation in the country’s gambling sector as new capital and gaming machine requirements are introduced.

After an extensive drafting process, Romania recently enacted a new Gambling Act. The act includes a prohibition on online gambling and aims to significantly reform the slot machine sector.