The Bulgarian amusement and gaming industry has contracted by more than 40 per cent in the last few years, according to the trade association BTAMOGI.
"This is due to the international financial crisis and the raising of tax rates for the gambling industry by 70 per cent, combined with the smoking ban that became effective in 2011," said Nadia Hristova from BTAMOGI.
"The reduced gaming revenue on one side pressed the operators to reduce the number of machines and make about 40 per cent of their staff redundant, while the effect for the manufacturers, where highly qualified mathematicians, game designers, engineers and programmers are employed, was similar and most importantly manufacturers are pressed to reduced their R&D costs, which might affect their competitiveness."
There is a new law planned for Bulgaria, which may offer some relief. However, it is primarily aimed at the regulation of online gaming and betting through mobile and other remote devices, to take into account the recent technological developments.
"In any legislative change it is essential to ensure a smooth transition from the old to the new regulations, which unfortunately the new draft law on gambling failed to achieve," added Hristova. "Operators were authorised under the old rules to organise games of chance for five or 10 years and made investments and business plans for the period of the licence. Now they will have to comply with the new conditions within 10 months of entry into law of the new act, which may cause further shrinkage in the industry.
"We hope that at all institutions concerned with the draft law will be coordinated before entering the plenary session of the Parliament, so it will reflect the views of the stakeholders and we will really get a good and effective gambling law in force."
