Bulgarian lawmakers debate 15-year privatization of state lottery

Bulgaria’s ruling parliamentary majority has proposed a 15-year concession for the Bulgarian Sports Totalizator (BST), effectively privatizing the state lottery.

The proposal, submitted on November 24 by Kostadin Angelov (GERB), Dragomir Stoynev (BSP), and Yordan Tsonev (DPS-New Beginning), is part of amendments to the Gambling Act within the State Budget Law, scheduled for a second reading on November 28, as per a Novinite.com report.

Lawmakers argue that despite BST’s monopoly position, its revenues remain lower than those of private gambling operators prior to the 2020 legal changes. Citing market analysis, they claim the state lottery is not a leading operator in the sector and that privatization via concession is necessary to make it competitive.

Under the proposed framework, the Minister of Youth and Sports would oversee both the granting and monitoring of the concession. The concession could be awarded only to a Bulgarian-registered legal entity or to a foreign company with an official business presence in Bulgaria.

A call for expressions of interest would need to be published by March 31, 2026, allowing operators to submit investment proposals. The concession would last at least 15 years, giving the private operator full rights to BST’s betting points, systems, equipment, valuable samples, and intellectual property.

Financial arrangements include the concessionaire transferring 10% of its corporate tax payments to the Ministry of Youth and Sports, earmarked for physical education, sports facilities, and related activities, with 10% of this sum allocated to the National Culture Fund.

Additionally, 30% of the concession fee would be directed to sports clubs and federations. Following the concession, BST would cease organizing gambling games, and any existing tickets, slips, or coupons would be invalidated.

The proposal has sparked controversy as the lottery was nationalized and granted monopoly status only a few years ago after the revocation of licenses for Vasil Bozhkov’s private gambling companies. 

Supporters of the concession argue that BST lacks the financial resources and operational expertise to compete with private online operators. BST fell short of revenue targets in both 2023 and 2024, achieving BGN 170.034 million (USD 100.44 million) against a target of BGN 190 million (USD 112.20 million) in 2023, and BGN 182.640 million (USD 107.85 million) versus a target of BGN 188.701 million (USD 111.44 million) in 2024.

Critics, including Ivaylo Mirchev of “Yes, Bulgaria” (WCC-DB), have accused the concession of political favoritism, suggesting it benefits DPS-New Beginning and interests linked to media mogul Delyan Peevski. Mirchev highlighted that Peevski’s mother, Irena Krasteva, previously served as BST director from 2002 to 2005, raising concerns about potential conflicts of interest. Calls for a parliamentary commission to investigate were reportedly blocked by MPs affiliated with GERB.