In 2024, Bulgaria introduced a wide range of prohibitions on gambling advertising through an amendment of the Bulgarian Gambling Act (GA), published in State Gazette No. 42 of 14 May 2024 and enforced three days later, which prohibited gambling advertising in the following areas:
- radio and television programmes, with the exception of the broadcast of draws of the State Enterprise “Bulgarian Sports Totalisator” and their announcements;
- public places, including building facades; printed materials and electronic media, including websites; state-owned and municipally-owned property, with the exception of sites that have been issued a license under the GA; and
- outdoor advertising structures, covering more than 5% of the total advertising space of any provider of advertising services via outdoor advertising structures.
Gambling advertising is permitted on the following:
- outdoor billboards located no less than 300 meters from educational institutions, playgrounds, and facilities providing social services to minors;
- the facade of a gambling facility; sports equipment, sports facilities, sports halls, stadiums, and swimming pools; and
- merchandising materials of sports federations and clubs, except for products intended for use by minors.
The content of permitted advertising is limited to the name, type, and variety of the gambling game; the organizer’s registered trademark; and draws and the announcement of winnings from them. The advertisements must not contain numbers, and, with the exception of sports equipment, the advertising must contain the following text: “Gambling carries a risk of developing an addiction” on at least 10% of its area.
The Council for Electronic Media (CEM) is responsible for overseeing advertising content in the media. In the event of any potential violations of the gambling advertising prohibition, the CEM refers the matter to the National Revenue Agency (NRA) for administrative penalty proceedings to be initiated. The Executive Director of the NRA is responsible for state supervision of gambling and gambling-related activities.
In the year following the GA amendments, the NRA issued decisions in reply to requests for access to public information and provided guidance letters that shape the regulatory framework of gambling advertising. The definition of gambling advertising according to § 1, item 23 of the Supplementary Provisions of the GA proved to be of key importance for the NRA’s interpretation of the prohibitions.
- The media covered by the prohibition: radio and television programmes, printed materials and electronic media, including websites
The NRA considers that the interpretation of the gambling advertising prohibition must not be literal but must be in line with the legislator’s intent. The NRA interprets the prohibition in connection with the Bulgarian Radio and Television Act (RTA) and, in particular, the definition of media services that operate under Bulgarian jurisdiction.
According to the NRA, television programmes (channels) that operate under foreign jurisdiction are generally excluded from the gambling advertising prohibition. Since, however, the gambling advertising prohibition imposes stricter rules on media service providers within the meaning of Article 4 of the Audiovisual Media Services Directive, the CEM may request that an EU member state having jurisdiction over media services wholly or mostly directed towards Bulgaria address problems identified in relation to these stricter rules.
The CEM oversees the advertising content in media services registered in its public register and operating under Bulgarian jurisdiction. Only those media services are covered by the GA prohibition.
The providers of social platforms (i.e. Facebook, Twitter/X, Instagram, TikTok and the video-sharing platform YouTube) are excluded from the gambling advertising prohibition since these online platforms would not qualify as media within the meaning of the RTA and furthermore they operate under foreign jurisdiction.
Video-sharing platform providers or online platforms, however, could fall under the definition of media service provider if they begin exercising editorial control over a section or sections of their services. In this case, they could be qualified as both a video-sharing platform provider/online platform provider and a media service provider.
Creators (i.e. influencers) that provide “on-demand audiovisual media services” via an online platform may also fall under the gambling advertising prohibition. This is the case where a creator or a legal entity provides a catalogue of programmes to the general public to inform, entertain or educate, and where the creator/legal entity exercises editorial responsibility (i.e. effective control over the selection of the programmes and over their organisation in the catalogue). Thus far, the Council for Electronic Media does not monitor or supervise on-demand media services that operate via a video-sharing platform or social network/platform. A shift in this approach will likely be triggered by the forthcoming revision of the Audiovisual Media Services Directive.
According to the NRA, the gambling-advertising prohibition covers only those websites that are registered as providers of audiovisual media services and radio services under the RTA. It is not clear whether all websites of media service providers are covered or only websites providing media services and registered in the CEM public register. The CEM will only monitor media services within the meaning of the RTA.
- Gambling advertising: the content excluded from the prohibition
According to the NRA’s interpretation, communications that do not fall within the definition of gambling advertising as per the GA will not be prohibited. Gambling advertising as per the GA covers:
- any means of communication that directly invites consumers to participate in gambling, including by creating the impression that participating in the game will help consumers resolve personal or financial problems or achieve financial prosperity, or invites citizens to participate in the game with promises of large winnings;
- any form of commercial message, communication, recommendation, or action that uses the name of a gambling game or the trade mark of a gambling game organiser, and the name or trademark of a gambling game organiser on products and goods.
The NRA has so far excluded from this definition online communications that contain the following:
- trade marks, provided there is no reference to or promotion of participating, bonuses, prizes, or winnings; and
- domain names belonging to gambling operators, provided that the respective trade marks/domain names or the content of the advertising do not directly invite users to participate in gambling (e.g. “Play”, “Win”, “You could win”, “Enter the game”, “Bonus”, etc.), including by creating the impression that by participating in the game, users will be able to resolve personal or financial problems or achieve financial well-being.
Online advertising can include a hyperlink to the website of the gambling organiser. In addition, there may be an exception from the obligation not to include figures in the advertising where, for instance, the operator's trade mark includes these numbers.
Product placement in media services is permitted if the commercial communication does not contain the elements of the gambling advertising definition within the meaning of § 1, item 23 of the GA. Product placement will not fall within the GA prohibition if, for instance, a logo/trade mark is positioned as part of the set design in the studio where a particular video format is filmed.
While the 2024 amendments to the Bulgarian GА introduced poorly considered bans on gambling advertising, the NRA’s guidance has provided important clarifications on their scope and meaning. The key takeaways for advertisers and media are the following:
- media services operating under foreign jurisdiction and social media platforms are generally outside the prohibition’s reach;
- content creators may be subject to the rules where they provide audio-visual media service; and
- communications that do not directly invite participation in gambling (e.g. mere trade mark and domain name displayed online or as a product placement in a TV programme) may fall outside the statutory definition of gambling advertising.
With significant regulatory changes on the horizon, including the anticipated revision of the Radio and Television Act expanding the scope of media services and the forthcoming review of the Audiovisual Media Services Directive, gambling operators and advertisers should stay ahead of the curve by remaining vigilant and informed.
For more information on regulatory changes in Bulgaria on gambling advertising and the gambling sector, contact your CMS client partner or the CMS Sofia experts who contributed to this article: Anna Tanova, Partner at CMS Sofia.
