The Bulgarian sector has come out against government plans to introduce a number of restrictions on online gambling.
While agreeing that such conversations are a right step towards better player protection, a number of industry organisations came forward to deem the draft text ‘unviable’ in its current form as it limits player freedoms.
What’s the fuss about?
Last month, two of Bulgaria’s Ministries came out with a proposal to tighten controls around consumer engagement with the sector. Despite it placing the well being of players at the centre, however, another glance at the measures makes it clear why they might’ve come across as rushed by some.
For one, mandatory time limits would see individual game sessions being restricted to a maximum of four hours for over-24s, and two hours for everyone under that age. So far, so good. The texts however do not clarify whether these limits per 24 hours, or per session start.
Critics have pointed out that in its current form, the draft allows for players to reach the 3:59 hours mark, log out, log in again, and continue for another four hours – with amendments needed to address this loophole.
A more serious issue is the proposed mandatory exclusion of players. The text envisions a maximum loss limit within a 24-hour window that would be set by the player itself.
Subsequently, if the customer reaches 100% of that limit within that period, operators would be required to place that customer on the self-exclusion registry for seven days.
Industry feedback has highlighted this as problematic for two main reasons. First, this would constitute a breach of freedom rights outlined within the Bulgarian constitution. Secondly, if a customer has their access to legal options forcefully revoked, the risk of turning to the black market increases significantly.
And lastly, but perhaps the biggest head scratcher, is the proposed cap on online wagers. The brief, which as a reminder was approved by two Ministries, wants to set a 24-hour wagering limit of a maximum of 20 average monthly salaries – amounting to thousands of Euros.
This is certainly a precedent in the whole of Europe, and does not accurately reflect the economic landscape in Bulgaria – the poorest country in the EU.
Industry is baffled
Since the consultation’s deadline expired on 5 July, several industry organisations have provided detailed feedback – pointing out what is wrong with the draft while leveraging their expertise to recommend amendments to the proposal.
Association of the Gaming Industry in Bulgaria (AGIB)
In its statement, AGIB noted that the draft fails to introduce a centralised system that would simplify the implementation of player session limits and wagering caps. Currently, this is left as the sole responsibility of individual operators.
“This means that a participant who has reached their limits with one operator can immediately continue playing with another licensed operator,” the statement read.
Furthermore, it recommended clear indication that session limits are tied to the active participation of customers with a game, rather than to activity not considered as ‘playing’, i.e. logging in and out of an account.
On the above, AGIB also suggested that session limits should not be overarching, but tailored to specific types of play, bringing a distinction between online gambling and sports betting for example.
The body also believes that the forceful exclusion of players by private companies is an infringement on citizens’ “freedom of personal choice and economic freedom”, and that the matter should be handled by the regulator instead.
Bulgarian Gaming Association (BGA) and Association of Organisers of Gambling Games and Activities in Bulgaria (AOGGAB)
BGA and AOGGAB warned of an increased black market prominence if wagering and play limits are introduced by the government.
“Experience in all European markets…shows that mandatory restrictions on gaming on licensed betting sites do not lead to restrictions on the players’ gaming and limiting the risks for them, but redirect them to freely accessible unlicensed sites.”
Various reports were cited from international trade bodies like the EGBA and national ones like the Netherlands’ NOGA, as well as national regulators like Sweden’s Spillemyndigheden, highlighting that the black market has overtaken legal alternatives in market share across Europe.
“As a result of the restrictive regulations, the money of citizens in the Republic of Bulgaria, instead of being spent on entertainment on the regulated, protected licensed market, will flow to Curacao, Panama, the Philippines and other offshore zones, where illegal online gambling providers are most often located.”
Both NGOs also claimed a breach in EU law, as all listed technical requirements will affect companies headquartered in other European jurisdictions. Therefore, the draft needs to be approved by the European Commission.
State monopoly talks
Another proposal was recently submitted by the far-right political party MECH to introduce a monopoly on gambling under the state-owned Bulgarian Sport Totalizator (BST).
Speaking to the media, party leader Radostin Vasilev said that he views direct state intervention as the only viable solution to an effective control on gambling.
MECH is currently in opposition to the coalition government and has a small number of MPs, which will slow down any momentum for support behind their bill.
