The gambling industry in Bulgaria is going to collapse because of the increase of the gambling tax approved by the Bulgarian Parliament on Wednesday.

This has been stated Thursday by the Bulgarian Association for Entertainment and Gambling Games regarding the increase of the gambling tax from 10% to 12% (15% was also considered by the MPs.)

According to the Association, instead of raised BGN 12 M of additional revenue, the tax increase is actually going to reduce state revenue coming from gambling because the industry has already seen a 40% slump over the economic crisis and will thus be dealt a new blow.

The Bulgarian Association for Entertainment and Gambling Games states that some 40 000 people of the 80 000 jobs in the gambling sector might be made redundant as the industry starts to struggle because of the combined effect of the crisis and the greater tax.

The Association has calculated that since the average salary in the sector is BGN 700, the loss of 40 000 jobs would translate into the loss of BGN 134 M in indirect taxes for the state budget. This figure is said to disregard the potential closures of gambling firms, smaller VAT and corporate tax payments.

According to official data, the Bulgarian gambling industry had a turnover of BGN 700 M in 2007, and of BGN 1 B in 2008.