2018/0361/BG
EC/EFTA
BG Bulgaria
  • H10 - Games of chance
2018-10-15
2018-07-24

Gambling

ACT AMENDING AND SUPPLEMENTING THE GAMBLING ACT

Under Article 9, paragraph 2 of the current Gambling Act, it is prohibited to organise gambling without the respective gambling license issued by the State Gambling Commission. Practical experience has shown that some aspects of gambling activities, such as payouts from winnings and the distribution of tickets, take place in sites that are not licensed and that there is a risk of fraud or parallel accounting, as was established in the fuel trade. In this regard, the draft act complements the existing ban on carrying out gambling activities without a license, including the sale of gambling-related securities and the respective payment of winnings by persons and entities not licensed under the act.

In addition to the increased protection of people with gambling disorders introduced by the Gambling Act, an amendment to the main provision of Article 10 of the act is proposed. The ban envisaged in the current version of Article 10, paragraph 1 on advertising addressed at minors is not applicable in practice. Advertising usually addresses an unspecified audience and it is impossible to ensure that the act will be implemented on this point. The legislation prohibiting the advertising of gambling applies to all persons. This makes it unnecessary for the addressees to be specified, as this may lead to misinterpretations of the act. In order to avoid the ban being interpreted as only being addressed at minors, the clarification shall be removed.

The proposed amendments to the act as regards advertising aim to harmonise the rules on gambling advertising set out in the act with the analogous provisions for the protection of the public interest concerning the advertising of alcoholic beverages, tobacco and tobacco products and of narcotic substances and precursors. In this regard, the draft act specifies the concept of advertising by introducing a distinction, laid down by other legislation, between direct and indirect advertising.

In order to avoid a total ban on the admissible advertising of gambling activities, which does not serve the public interest (e.g. displaying the name of the sponsor company on sports T-shirts, panels, barriers and other boards during sports and cultural events, etc.), the act introduces a ban only on advertising related to non-gambling products and goods but containing commercial messages or recommendations that directly or indirectly use the name of the company organising gambling activities or the name of the game.

The Gambling Act prohibits only direct advertising, but practical experience has shown that the authorised announcement of game results and the winnings earned by individual players, which is currently allowed by law as indirect advertising, has become a prohibited form of direct advertisement. The advertisement showing the winning players contains statements that the amount won through gambling will help the participant solve their personal domestic and financial problems. In essence, it is a direct advertisement that contains a message to consumers and suggests that the gambling activity organised by the respective company is a means of achieving personal well-being.

The act stipulates that the information which may be announced pursuant to Article 10, paragraph 2 shall include only the name of the game and the public draws, which will ensure openness and transparency when drawing the winning combinations.

In connection with the proposed amendment to Article 10, paragraph 1 of the Gambling Act, it is necessary to repeal paragraph 6. The special rules for gambling advertising shall be repealed in view of the ban on direct and indirect gambling advertising introduced by this act.

The proposals are in line with the case-law of the Court of Justice of the European Union (e.g. Judgment of the General Court (Ninth Chamber) of 14 December 2017, Case T-304/16, BET365 Group Limited v European Union Intellectual Property Office), according to which restrictions on the conduct and advertising of gambling activities are admissible.

The proposed act complies with the principles of protection of the public interest laid down in national and EU law, while upholding freedom of speech and non-discrimination.