Bulgaria drafts 1.5% net fee cap on gambling transactions

By jili tutorial · September 26, 2026

Bulgaria’s Proposed 1.5% Fee Cap on Gambling Payments: A Comprehensive Guide

Overview: A Novel Fiscal Approach in the EU

Bulgaria has introduced a draft reform that would cap the net fees payment facilitators—such as banks, payment institutions, and e-money companies—can charge for processing gambling transactions at 1.5% of the transaction value. This represents a first-of-its-kind regulatory instrument within the European Union, shifting the focus from gambling operators themselves to the financial infrastructure that supports their payments.

The proposed rule targets two specific types of gambling-related payment operations: deposits (funds placed for participation) and payouts of winnings. Any fee or commission above the 1.5% threshold must be remitted directly to the state budget. The measure is currently in a public consultation phase, open until 23 October.

Key Provisions of the Draft Rule

Fee cap: Payment facilitators (banks, payment institutions, e-money companies) are allowed to retain a maximum of 1.5% of the transaction value as their own revenue when processing gambling deposits or winnings payouts.
Excess to state budget: If a provider charges a fee higher than 1.5% (e.g., 3%), the difference above the cap must be paid into the national budget.
Scope: Applies to all gambling-related transactions processed by the named entities, regardless of whether the gambling operator is domestic or foreign, as long as the payment facilitator operates in Bulgaria.
Compliance: Payment providers will be required to submit monthly declarations and maintain detailed records of their gambling payment fees, enabling strict monitoring by authorities.

How the Cap Works in Practice

Consider a user who deposits €1,000 into an online gambling account. The payment platform charges a €30 fee (3%) for processing that deposit. Under the proposed rule:

The platform may keep only €15 (1.5%) as corporate revenue.
The remaining €15 must be sent to the state budget.

The same principle applies to payouts: if a gambling operator uses a bank to send winnings to a customer and that bank charges a fee above 1.5%, the excess is redirected to the government.

Rationale and Objectives Behind the Reform

Policymakers have stated two main motivations:

Greater responsibility from payment facilitators – Entities that earn substantial revenues from high-risk gambling transactions should bear a share of the societal costs associated with problem gambling.
Utilisation of the premium fee structure – Gambling payments are considered high‑risk in Bulgaria, often attracting processing fees significantly higher than standard transactions (sometimes 3–5%). The reform aims to capture this “premium” and channel it into the state budget.

The impact assessment further notes that due to the large volume of gambling transactions and the key role of payment processors in enabling them, a mechanism is needed to formally recognise that role. While the funds could theoretically be used for problem‑gambling initiatives, the draft does not specify an intended allocation at this stage.

Impact on Payment Providers and End Users

For payment facilitators: Providers currently charging fees above 1.5% will face a direct revenue reduction. They may choose to lower their fees to exactly 1.5% to avoid administrative burdens or continue charging higher fees and remit the excess to the state. Either way, the cap creates a new compliance cost and potential squeeze on margins.
For end users (gamblers): A likely outcome is a general decrease in payment processing fees as providers align with the cap to simplify operations. This could reduce the cost to consumers who currently pay transaction fees directly (e.g., deposit surcharges). However, if providers pass on compliance costs elsewhere, the net effect on user fees may be mixed.

Compliance and Reporting Requirements

To enforce the cap, the draft imposes stringent obligations:

Monthly declarations – Payment providers must report all gambling-related transaction fees and the amount remitted to the state budget.
Record-keeping – Detailed logs of each transaction, fee charged, and excess paid must be maintained and made available to regulators upon request.

Failure to comply could result in fines or other penalties, though specific enforcement mechanisms are yet to be detailed.

Potential Outcomes and Broader Context

If enacted, the rule would represent a paradigm shift in how EU member states regulate gambling finance. Instead of taxing operators or imposing licence fees, Bulgaria is targeting the payment layer. This could:

Incentivise payment providers to renegotiate contracts with gambling operators, potentially pushing fees toward the 1.5% ceiling.
Create a new revenue stream for the national budget, indirectly linked to gambling activity.
Set a precedent for other countries considering similar measures to capture value from high‑risk payment processing.

However, the reform is still a draft. The public consultation period (ending 23 October) allows stakeholders—including banks, e‑money firms, gambling operators, and consumer groups—to submit feedback before the rule is finalised or potentially modified.

Timeline and Next Steps

Draft published: The proposal is currently open for public discussion.
Consultation deadline: 23 October – interested parties must submit comments by this date.
Enactment: If adopted, the rule is expected to come into force after parliamentary approval, likely with a transitional period for compliance.