In accordance with the current legislation of the Republic of Bulgaria, namely the Gambling Act, in order to carry out activities related to the organization of gambling games within the territory of the country, including the operation of a casino, the following mandatory requirements and conditions apply:
1. License regime
- Any gambling activity on the territory of the Republic of Bulgaria may be carried out only on the basis of a license issued by the Executive Director of the National Revenue Agency (NRA) or by a Deputy Director authorized by them;
- The license entitles the holder to organize only the specific game or activity expressly stated therein and is non-transferable, except in strictly defined cases;
- Bets and winnings must be conducted inEUR, unless otherwise explicitly provided in the Certificate.
2. Type of Legal Entity
The right to organize gambling games is granted to commercial entities registered in the Republic of Bulgaria or in a Member State of the EU/EEA/Switzerland.
Only limited liability companies (Ltd.) or joint-stock companies (JsC) with registered (nominative) shares may be granted a casino license.
For companies from third countries (including non-EU states), it is mandatory to first establish a Bulgarian commercial company under the Commerce Act.
3. Capital Requirements
In order to obtain a casino license, the company must have a fully paid-in capital of no less than BGN 1,500,000 or its equivalent in EUR.
For gambling games with slot machines, the required capital is at least BGN 750,000 or its equivalent in EUR.
4. Investment and Financial Resource Requirements
It is mandatory to submit documents proving:
- investments made in an amount not less than BGN 1,000,000;
- availability of financial resources for organizing casino games in an amount not less than BGN 600,000.
These funds must be:
- Available in cash or held in the company’s bank account;
- Secured via an unconditional and irrevocable bank guarantee issued by a licensed bank.
- Investments must be proven for each individual gaming location;
- The investments and the financial resources must be maintained throughout the entire duration of the license.
5. Geographical Restrictions
Casinos may only be located in urban areas with a population of over 10,000 inhabitants as exception is provided.
6. Participation of foreign persons
Foreign persons may participate in gambling activities in Bulgaria only if:
- They invest more than EUR 10 million and create at least 500 working places; or
- They organize casino gambling in a 4-star (or higher star) hotel owned by them or by a company under their control.
Exception from the above rules apply only for citizens and entities from the EU, EEA, and Switzerland.
7. A gambling license shall not be issued, if:
- There are convicted persons for intentional crimes (unless rehabilitated);
- There are unsatisfied creditors following insolvency proceedings within the past three years;
- The applicant is affiliated with a company whose gambling license has been revoked or which has been sanctioned for illegal gambling in the past three years;
- The origin of funds is not proven;
- Offshore or anonymous (non-personified) entities are involved;
- A license has been revoked in another EU/EEA/Swiss country;
- Notarized declarations, criminal record certificates, and other required documents are not submitted along with the application.
The article above is for information purposes only. It is not a (binding) legal advice. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.
