The Gaming Industry Continues to Grow

Game is a primary human function; it is an important element of life, scientists claim. Games, as well as everything else, change constantly. There is nothing new under the sun. Change is the only constant. This is also true for the gaming industry in recent years. The technological innovations set the dynamics for the companies in the sector; they also influence the consumers’ senses. This trend was confirmed by the Balkan Entertainment and Gaming Expo (BEGE). It was held for the 12^th time at the end of November in Sofia and managed to bring together more than 80 companies from 50 countries.

Where Are We

The gaming industry in Bulgaria is a predictable and well-regulated economic sector, which for another year, is reporting good results. The financial revenues to the Treasury, the job creation in lower employment regions and the tourism connectivity enhance the diversity of services in this sector and confirm the role of the gambling industry as a reliable economic entity in the country, assures the Bulgarian Trade Association of Manufacturers and Operators in the Gaming Industry (BTAMOGI). The fine line between gambling and gaming is clearly defined by law: There must be a wagering of money and a random distribution of profits.

In Bulgaria and Around the Globe

Global gaming industry figures show that the revenue continues to grow. For 2018, it is estimated at USD 449.3 billion, an annual increase of about 4.1% since 2014. In 2022, revenue is expected to reach USD 565.4 billion.

In 2018, the gambling industry in Bulgaria showed a relative stability, assures Angel Iribozov, Chairperson of BTAMOGI. Revenues from the gaming industry in the state budget for 2018 amount to BGN 221.6 million, which is 10.5 percent more than in 2017 and BGN 131.7 million more than in 2014. By the end of September 2019, the taxes paid amount to BGN 174.7 million, which promises to bring between 5 to 10% increase of the state budget revenues for the year. And the number of licensed gaming sites is growing. As of 30 September 2019, there were 942 gaming halls, compared to 699 five years ago. The number of gaming facilities installed has also increased.

The Network Attracts Players

Online gambling is another segment of the gaming industry that is booming. As of November 2019, there are 11 registered organizers with 27 licenses for organizing online games. However, the chairperson of BTAMOGI predicts that the announced new fees for online gambling companies in Bulgaria in October could harm their financial results and reduce taxes paid to the budget. Experience shows that the increase in rates has usually led to the closure of sites and a decrease in tax revenues. The Internet is a vast sea and control is difficult, but players in the online environment are free to choose whether to work with a legitimate operator and, if there are disputes, they can claim their rights, or choose someone from the grey sectors, Angel Iribozov says.

 In Top 10

The good news is that Bulgaria is in the top 10 of gaming technology manufacturers. Our companies are developing technological support for gambling and offer world-class gaming equipment and gaming software mainly for export. This business provides jobs for engineers and mathematicians, programmers, designers, artists. The products are the result of the collaboration of highly qualified teams. They introduce innovations and create their own solutions for the rapidly changing industry. There are at least 10 Bulgarian producers, such as Euro Games Technology and Casino Technology, which are leading players in the entire gaming industry.

Unused Opportunities

The gaming industry is part of the National Strategy for Tourism Development. There are favourable conditions for its growth, including the fact that gambling is banned in neighbouring countries and nearby destinations. Such tourists can bring additional revenue to the Bulgarian economy, but it will take considerable effort and interinstitutional coordination to become an attractive destination for gambling tourism.