Bulgaria plans privatisation of state lottery and betting

Bulgaria is considering a significant shift in its gambling landscape, with proposed reforms aimed at privatising the state lottery and sports betting operations. The proposed changes, submitted by key members of the country’s ruling majority, are intended to transform the Bulgarian Sports Totalizator (BST) into a long-term concession operated by a private entity. If approved, the reform would mark one of the most substantial restructurings in Bulgaria’s gambling sector in recent years.

The draft amendments, presented to the chairs of the Budget and Finance Committee and the National Assembly, were formally submitted on Monday. They include provisions to introduce a competitive tender process for the operation of BST, which currently functions as a state monopoly.

Legislative proposal and political sponsorship

The proposed amendments to the Gambling Act are backed by several prominent political figures: Kostadin Angelov of GERB, Dragomir Stoynev of BSP, and Yordan Tsonev of DPS–New Beginning. They have incorporated the reforms into the transitional and final provisions of the State Budget Law.

The measure is currently scheduled for a second reading on November 28, reflecting the government’s commitment to fast-track the legislative process. Proponents of the reform argue that state ownership of BST has not achieved the financial results anticipated, and that privatisation through a long-term concession could increase revenues and operational efficiency.

Performance of Bulgarian Sports Totalizator

Supporters of the proposed reforms point to data showing that BST, despite holding a monopoly since 2020, has consistently underperformed compared with private operators who were active in the market prior to nationalisation. Critics note that revenue targets have repeatedly fallen short and that channelisation to the state operator remains low.

In 2023, BST generated BGN 170.034 million (€86.8 million) in revenue, falling short of the BGN 190 million (€96.9 million) target. For 2024, the budgeted target was BGN 188.701 million (€96.3 million), while actual revenue reached BGN 182.640 million (€93.2 million). These shortfalls have been central to arguments in favor of privatisation, as private operators are viewed as more capable of generating sustainable profits in a competitive gambling market.

Proposed framework for BST tender

The legislative draft sets out a clear framework for the privatisation process. Under the proposal, a public call for tenders for Bulgaria’s national lottery and sports betting concession must be issued no later than March 31, 2026. Eligibility criteria stipulate that only companies registered in Bulgaria, or foreign firms with a physical presence in the country, would be permitted to submit bids.

The concession is expected to last for at least 15 years, providing the winning operator with long-term operational stability. Full control over BST’s existing infrastructure, including betting outlets, IT systems, equipment, intellectual property, and other operational assets, would be transferred to the concessionaire.

Oversight of the concession would rest with the Minister of Youth and Sports, who would also be responsible for awarding the contract and monitoring compliance throughout its duration. The transition from public to private management would involve a complete shutdown of BST’s state-run operations, with all existing tickets, slips, and betting coupons rendered invalid and destroyed.

Financial arrangements and revenue distribution

The draft legislation includes detailed provisions regarding financial obligations and revenue allocation. Under the plan, 10% of the concessionaire’s corporate tax contributions would be directed to the Ministry of Youth and Sports, with one-tenth of that amount earmarked for the National Culture Fund. Additionally, 30% of the concession fee collected would be distributed to sports clubs and federations, ensuring that private management would continue to support the broader sporting ecosystem in Bulgaria.

Proponents of the reform suggest that this revenue-sharing model would enhance transparency and improve the funding of local sports programs, while simultaneously allowing the private operator to leverage the existing BST infrastructure for efficient operations.

Controversies surrounding the reform

The proposal has generated significant debate and controversy. The BST was nationalised relatively recently following the revocation of licences previously held by businessman Vasil Bozhkov. That revocation was accompanied by allegations that members of the former State Commission on Gambling accepted bribes, raising questions about governance and transparency in the sector. In 2020, oversight responsibility for gambling operations shifted to the Bulgarian Revenue Agency.

Critics of the privatisation plan argue that the move is politically motivated, suggesting that it may disproportionately benefit DPS–New Beginning and figures connected to Delyan Peevski. Ivaylo Mirchev of Yes, Bulgaria (part of WCC–DB) highlighted potential conflicts of interest, pointing to the fact that Peevski’s mother, Irena Krasteva, previously served as head of BST from 2002 to 2005. Mirchev further claimed that efforts to establish a parliamentary commission to examine the matter were blocked by GERB MPs, suggesting political interference in the process.

Arguments for privatisation

Supporters of the reforms emphasise that the BST currently lacks the financial resources and technological expertise to compete with private online operators. They argue that private management would bring operational efficiencies, improved customer experiences, and higher revenues, ultimately benefiting the state, sports organisations, and cultural initiatives funded through the concession fees.

Advocates also note that privatisation through a long-term concession model provides a structured approach that balances public oversight with private sector innovation. By maintaining ministerial supervision and revenue-sharing provisions, the government retains a level of control while enabling a professional operator to modernise the country’s gambling sector.

Risks and concerns

Despite the proposed benefits, opponents remain cautious. Questions have been raised about transparency in the tender process, potential conflicts of interest, and the long-term implications for state revenue. Critics also point out that the concession model could reduce government flexibility in responding to emerging market trends or regulatory needs, as operational control would largely rest with the private operator for 15 years.

Additionally, some observers have highlighted social and ethical concerns, noting that privatisation of gambling operations may increase access to high-risk betting and potentially exacerbate gambling-related harms. To mitigate these risks, the legislation includes provisions for ministerial oversight and strict monitoring of compliance with gambling regulations.

International comparisons

Bulgaria’s approach mirrors similar reforms in other European countries, where governments have sought to modernise state-run lotteries and betting operations by introducing private concessions or public-private partnerships. Countries such as Italy, Spain, and Greece have implemented concession models to encourage market competitiveness, boost revenues, and improve technological standards while ensuring that state oversight is maintained.

Analysts suggest that a well-designed concession process in Bulgaria could enhance transparency, drive innovation, and generate significant fiscal benefits, provided that the tender process is carefully managed and regulatory safeguards are strictly enforced.

Next steps in the legislative process

The draft amendments are scheduled for a second reading in the National Assembly on November 28. If approved, the Ministry of Youth and Sports will begin preparations for the public tender, ensuring that the process is open, competitive, and compliant with Bulgarian law.

Stakeholders, including sports federations, private operators, and civil society organisations, are expected to closely monitor the process. Public commentary and consultations may play a role in refining the final legislative provisions, particularly regarding the allocation of concession fees and the scope of ministerial oversight.

Conclusion

The proposed privatisation of Bulgaria’s state lottery and sports betting operations represents a pivotal moment for the country’s gambling sector. By introducing a long-term concession model, the government seeks to modernise an industry that has historically struggled to meet financial expectations under state ownership. This reform aims not only to enhance revenue generation but also to ensure that gambling operations are managed with professional expertise, technological innovation, and operational efficiency, aligning Bulgaria with broader European trends in lottery and betting management.

While the potential benefits are significant, the proposal also underscores the delicate balance between public oversight and private control. Effective ministerial supervision and transparent tender processes will be critical to prevent conflicts of interest and maintain public trust. Furthermore, allocating a portion of the concession fees to sports clubs and cultural initiatives demonstrates an effort to safeguard social and community interests, ensuring that privatisation does not come at the expense of public welfare.

Ultimately, the success of this reform will depend on careful implementation, rigorous regulatory monitoring, and continued political accountability. If executed responsibly, the privatisation of BST could revitalise Bulgaria’s gambling sector, enhance state revenues, and provide long-term benefits for sports, culture, and the wider economy. Conversely, any lapses in transparency or oversight could undermine public confidence and limit the potential of this ambitious restructuring. In this context, the coming months will be crucial in shaping the future of Bulgaria’s gambling landscape.

FAQs

What is the Bulgarian Sports Totalizator?
The Bulgarian Sports Totalizator (BST) is the state-run monopoly responsible for lottery and sports betting operations in Bulgaria.

Why is Bulgaria considering privatisation of BST?
The government argues that BST has underperformed financially compared with private operators, and privatisation could improve efficiency and revenue.

Who proposed the amendments to the Gambling Act?
Kostadin Angelov (GERB), Dragomir Stoynev (BSP), and Yordan Tsonev (DPS–New Beginning) are the main sponsors of the amendments.

How long would the concession last?
The proposed concession is set to last at least 15 years.

Who can apply to operate the concession?
Only Bulgarian-registered companies or foreign firms with a physical presence in Bulgaria are eligible to apply.

What happens to BST operations after the concession?
BST would cease running gambling operations, and all existing tickets, slips, and coupons would be invalidated and destroyed.

How will revenues be distributed under the concession?
10% of corporate tax payments would go to the Ministry of Youth and Sports, one-tenth of which would be allocated to the National Culture Fund, while 30% of the concession fee would be distributed to sports clubs and federations.

What are the main criticisms of the privatisation plan?
Critics raise concerns about political motivations, potential conflicts of interest, and reduced government flexibility in regulating gambling.

How does the proposal compare internationally?
Similar concession models exist in countries like Italy, Spain, and Greece, which have successfully modernised state-run lotteries and betting operations.

When will the legislative amendments be voted on?
The draft proposal is scheduled for a second reading in the National Assembly on November 28.