Law Amending The Law On Gambling

Original Language Title: Закон за изменение и допълнение на Закона за хазарта

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
Name of law
Law amending the Law on Gambling




Name Bill
Bill amending the Law on Gambling





Date of adoption
19/12/2013



Number / year Official Gazette
1/2014







DECREE № 269
Pursuant to Art. 98 pt. 4 of the Constitution of the Republic of Bulgaria
DECREE:
To be published in the "Official Gazette" Act amending the Gambling Act adopted by HLІI National Assembly on December 19, 2013
released in Sofia on December 27, 2013
President of the Republic: Rosen Plevneliev
stamped with the state seal.
Minister of Justice: Zinaida Zlatanova

Law amending the Law on Gambling (prom. SG. 26 of 2012 .; amend., SG. 54, 82, 94 2012 and SG. 68 of 2013)
§ 1. In art. 5 para. 1, p. 5 'gambling remotely via the Internet "are replaced by" online gambling ", the words" gambling by distance through electronic means of communication "be replaced with" gambling by other electronic means of communication "and the words" for all games of chance from a distance "are deleted.
§ 2. In art. 6 The following amendments and additions:
1. The title is amended as follows: "License for online betting."
2. In para. 1:
a) in the text before item. 1, 'shuffleboard remotely "be replaced with" online gambling ";
B) pt. 4 after the words "server" is added "the Commission and" after "in the system of" insert "and the Commission" and the words "the Minister of the Interior" shall be replaced with "President State Agency "National security";
In) the item. 6:
"6. presence of an authorized representative of the Company under Art. 4 para. 1, p. 1 when it is registered in another Member - State of the European Union in another country - party to the Agreement on the European Economic Area or Switzerland, with address in the Republic of Bulgaria and representative authority in volume that allows him to conclude contracts on behalf of the foreign person to represent it before public authorities and courts of the Republic of Bulgaria. An authorized representative may not be a trade representative under Chapter VI, Section II of the Commercial Code. "
Third. In para. 2 words "para. 3 "are replaced with" para. 4 ".
4. A new paragraph. 3:
"(3) Communication equipment for organizing online betting covers computer systems and networks that include server organizer of the Games and all related components, operating systems and software games."

5. Former para. 3 becomes para. 4 and it creates the third sentence: "Data is stored in the form in which they were created for a period of five years after the expiry of the limitation period for repayment of public debt associated with these data."
6. Former para. 4 becomes para. 5 and is amended as follows:
"(5) The communication equipment must be carried out as geographical localization of the IP address and identify the date, time and duration of a gaming session of the person registered as a participant in a game in website the organizer. Data is stored for a period not less than 12 months from the date of collection and processing them. "
§ 3. In art. 9 is amended as follows:
1. Paragraph 8 is amended as follows:
"(8) The authorized organizers of gambling games can not operate on the manufacture, import, distribution and service of gaming equipment for gambling, except for the import of gaming equipment for their own needs." | || 2. Paragraphs 9 and 10 are canceled.
§ 4. An Art. 10a:
"Obligation to socially responsible behavior
Art. 10a. (1) With respect to responsible gambling measures adopted by the European Committee for Standardization, the organizer shall be credited to the State Commission on Gambling following annual contributions:
1. for organizers of online gambling - 50,000 lev .;
2. for organizers of games in a casino - 10,000 lev .; 3
. all other organizers of games of chance - 5,000 lev.
(2) Funds under par. 1 is spent on activities related to the protection of young people from gambling prevention and treatment of problem gambling, conducting responsible advertising and marketing quickly and effectively resolve disputes between the organizer of the game and nick it in the terms and conditions set by the Minister of Finance.
(3) The deadline for payment of amounts under par. 1 is 31 March of the current year and the deadline for those licensed after that date, one month of receiving the license. In non-payment of amounts due within the due legal interest in double amount. "
§ 5. In art. 11 para. 2 is amended as follows:
"(2) Paragraph 1 shall not apply to games organized online or through other electronic means of communication."
§ 6. In art. 14, para. 3 pt. 1 the words "not less than a quarter of these funds are allocated for 'sport for all' in the Physical Education and Sports" are deleted.
§ 7. In art. 18, para. 1, 'Minister of Interior "is replaced by" Chairman of the State Agency "National Security".
§ 8. In art. 20, para. 3, after the words "Ministry of Finance", a comma and added "the State Agency" National Security ".

§ 9. In art. 21, para. 1 after the words "Ministry of Finance", a comma and added "the State Agency" National Security ".
§ 10. In art. 22, para. 1 made the following amendments:
1. In pt. 7, the words "gambling remotely" be replaced by "online betting and gaming through other electronic means of communication."
2. At p. 10 words "organized games from a distance" and "games remotely" be replaced by "online betting and gaming through other electronic means of communication."
§ 11. In art. 26, para. 4 pt. 5, the words "from a distance" is replaced by "online or through other electronic means of communication."
§ 12. In art. 30 make the following additions:
1. In para. 1 after 'licenses under this Act "insert" except for the initial license to organize games of chance. "
2. Created al. 3, 4, 5, 6, 7, 8 and 9:
"(3) In order to maintain a license to organize gambling - lottery, lotto games with betting on sporting events and horse and dog games with betting on chance events and betting-related knowledge of the facts, with the exception of online gambling collect state tax of 15 percent on the value of the bets for each game, and gambling for which they are collected fees and commissions for participation - at the rate of 20 percent on the value of the fees and commissions.
(4) To obtain and maintain a license for online betting collect state tax component consisting of a one-time fee of 100 thousand. Lev and a variable amount equal to 20 percent of the difference between the value of the bets and paid winnings and games for which fees and commissions to participate - at a rate of 20 percent on the value of the fees and commissions.
(5) gambling with slot machines and casino games that are an alternative tax under the Corporate Income Tax, the tax under par. 4 shall not be collected.
(6) The organizers of gambling games that pay the fee under par. 3 and the variable part of the fee under par. 4 submitted each month to the Commission by the 15th day of the following month declaration in a form approved by the Minister of Finance, the difference between the value of the stakes and paid winnings and games for which fees and commissions to participate - a declaration of the value of the fees and commissions.
(7) Following the submission of the declaration, but before the deadline under par. 6, the gaming operator has the right to make changes related to data submitted declaration. Changes are made by submitting a new declaration.

(8) The one time part of the fee under par. 4 shall be paid into the bank account of the Commission before receiving the certificate issued initial license for organizing gambling games.
(9) The fee under par. 3 and the variable part of the fee under par. 4 shall be paid into a bank account within the time for filing the declaration under par. 6. "
§ 13. In art. 39, para. 2 and 3 the words "para. 8 and 9 "are replaced with" para. 8 ".
§ 14. In art. 41 be made the following amendments:
1. In para. 1 a second sentence: "The way the technical means and electronic communications devices or services that is organized and offers shuffleboard, do not change the type of game."
2. Create a new paragraph. 2 and par. 3 and 4:
"(2) Gambling under par. 1, except for lottery and instant lottery may be organized online or through other electronic means of communication.
(3) Gambling can be organized online - directly via the Internet or by other electronic means of communication: mobile and stationary devices, radio, television, satellites and other means.
(4) games of chance authorized under this Act that are not organized in a way referred to in the preceding paragraph are not considered gambling. "
Third. Former para. 2 becomes para. 5.
§ 15. In Chapter Three, Section I create art. 47a - 47e:
"Registration of participants in the online betting
Art. 47a. Participants in online betting are subject to individual registration procedure and manner specified in the ordinance under Art. 6 para. 1 pt. 4 and subject to the prohibition under Art. 45, para. 2 item. 1.

Payments Art. 47b. Payments for online betting relating to betting and payout winnings are performed through a bank necessarily in the bank account of the organizer of the game opened by art. 6 para. 1, p. 3, subject to the established rules of the organizer of art. 22, para. 1, p. 11.
Required information
Art. 47b. The website of the organizer, through which we organize online gambling, must contain information in Bulgarian on: data organizer in its commercial registration, including tax and / or other identification number; issued by the Commission license; rules of gambling; clear and unambiguous list of ways of taking bets to form and payment of profits, the size of the stakes and the corresponding gains support services, contact details, including telephone and email to carry out direct and timely contact with the organizer and with the Commission; how to complaints and signals to the organizer and the Commission.
Communications Equipment

Art. 47d. Game software includes a random number generator that determines the outcome of the games except games with betting on sporting events and horse and dog betting on chance events and betting-related knowledge of the facts.
Access control local server
Art. 47e. The organizer of the online gambling provides control authorities by the Commission, the National Revenue Agency and the State Agency "National Security" uninterrupted remote access to control local server under Art. 6 para. 3, located on the territory of the Republic of Bulgaria, including the database with information on games with participants from the Republic of Bulgaria. "
§ 16. In art. 62, para. 1, 'which is not determined by a random number generator "are deleted.
§ 17. In art. 63 create par. 3, 4 and 5:
"(3) Where the games with betting on chance events and betting-related knowledge of the facts are organized through electronic communication means, the bet is expressed in the increase in the price of telephone or other electronic communications service. Provider of such a service must first ensure that gambling is permitted under this Act.
(4) For betting by electronic communication shall be deemed that the pledge made by the person - the owner or legitimate user of electronic means of communication.
(5) prohibited gambling be conducted by electronic means of communication, which is owned by the state or municipal organization or legal entity funded by the pledge made by such means is void. "
§ 18 . In art. 65 be made the following amendments:
1. The title is amended as follows: "Return and testing."
2. The previous text becomes para. 1.
third. Created al. 2 and 3:
"(2) The software of slot machines, which are organized online betting should provide return not less than 80 percent of the total bets.
(3) Where a change in the number, type of virtual gaming equipment and system only jackpot game software to be tested by an order determined by the ordinance under Art. 42, para. 2. "
§ 19. In Chapter III Section VII" Gambling remote "with art. 77, 78, 79, 80, 81, 82, 83 and 84 shall be repealed.
§ 20. In art. 85 para. 1 creates pt. 13:
"13. where the organizer is not submitted within the declaration of art. 30 para. 6. "
§ 21. In art. 92 be made the following amendments:
1. The previous text becomes para. 1 and in it after the word "Commission" shall be added "and fees for issuing and maintaining a license."
2. Created al. 2 and 3:

"(2) Upon failure to pay within the prescribed time fee of art. 30 para. 3 and the variable part of the fee under Art. 30 para. 4 for the period of delay is charged and due interest at the statutory rate.
(3) Unpaid within fee of art. 30 para. 3 and the variable part of the fee under Art. 30 para. 4 enforceable by a public contractor under the Tax and Social Insurance Procedure Code. The act establishing the decision is issued by the President of the Commission. "
§ 22. In art. 96 para. 1 is amended as follows:
"(1) To organize gambling games or activities without a license is required:
1. proprietary sanction from 1 million to 2 million lev legal entity which organizes online gambling;
2. proprietary sanction of 50 000 to 200 000 lev legal entity gambling, which is not organized online; 3
. a fine of 20 000 to 50 000 Levs an individual who carries out any operation of production, import, distribution and service of gaming equipment or proprietary sanction of 50 000 to 200 000 lev a legal person carrying out any operation on the manufacture, import, distribution and service of gaming equipment. "
§ 23. in art. 104 made the following amendments:
1. The previous text becomes para. 1 and the words "Organizer of gambling from a distance" are replaced by "the organizers of online gambling", the words "para. 3 and 4 "is replaced with" para. 4 and 5 "and the words" fined "are replaced by" financial penalties ".
2. Created al. 2 and 3:
"(2) the organizer of gambling that is not submitted within the declaration of art. 30 para. 6, a pecuniary sanction from 5,000 to 10,000 lev.
(3) organizer of gambling that does not indicate or indicate false data or circumstances in the declaration of art. 30 para. 6 and 7 leading to the determination of the fee in a smaller size, a pecuniary penalty of the uncharged tax, but not less than 5000 Levs. "
§ 24. In art. 115 words "Art. 79 "shall be replaced with" Art. 47b '.
§ 25. In § 1 "Additional provision" be made the following amendments:
1. In item. 9, "from a distance" is replaced by "organized online or through other electronic means of communication."
2. In item. 11 words "from a distance organizer" is replaced by "organized online or through other electronic means of communication." 3
. Section 24 is amended as follows:
"24. "Game Session" in gambling organized online, the process of game that begins with the bet by a registered participant in the central computer system of the organizer and ends with the playing of the pledge or the payment of profit as a result of the bet. "|| | 4. A t. 25:

"25. "Online Gambling" is a way of organizing a gambling game where players bet directly via the Internet or other electronic means of communication, such as communication between the player and the organizer of the gambling game is done directly electronically. "
§ 26. In the transitional and concluding provisions in § 9 para. 2 is amended as follows:
"(2) The budget of the Ministry of Youth and Sports annually provides targeted subsidy for physical education and sports in the amount imported in the state budget of the State enterprise" Bulgarian Sports Totalizator "tax under the Corporate Income tax for the previous year and the fee of art. 30 para. 3, and the variable part of the fee under Art. 30 para. 4. "
Transitional and Final Provisions
§ 27. In the Measures against Money Laundering (prom. SG. 85 of 1998 .; Amend. No.. 1 and 102 in 2001 SG. 31 of 2003 pcs. 103 and 105 of 2005, pcs. 30, 54, 59, 82 and 108 of 2006, pcs. 52, 92 and 109 of 2007, pcs. 16 36, 67 and 69 of 2008, pcs. 22, 23 and 93 of 2009, pcs. 88 and 101 in 2010, pcs. 16, 48, 57 and 96 of 2011, pcs. 44 60 and 102 of 2012 and SG. 52 of 2013) in art. 4 para. 3 words "Art. 72, para. 2 "are replaced with" Art. 74, para. 1. "
§ 28. In the Law on Corporate Income Tax (Prom. SG. 105 of 2006 .; amend., SG. 52, 108 and 110 of 2007, pcs. 69 and 106 2008 pcs. 32, 35 and 95 of 2009, pcs. 94 of 2010, pcs. 19, 31, 35, 51, 77 and 99 of 2011, pcs. 40 and 94 of 2012 . and SG. 15, 16, 23, 68, 91, 100 and 109 of 2013) the following amendments:
1. In art. 1 p. 6 shall be amended as follows:
"6. the activities of the organizers of the said law gambling; ".
2. In art. 5 para. 4 tons. 1 is amended as follows:
"1. the activity of the organization referred to in this law gambling; ". 3
. Chapter Twenty-Two "Reduce, remission and exemption from corporate tax" in Part II "exemption from corporate tax" creates art. 176a:
"Art. 176a. (1) The organizers of gambling, which is due to stamp duty under Art. 30 para. 3 of the Gambling Act, is not subject to income tax for this activity.
(2) For all other activities, persons under par. 1 subject to corporate tax. "
4. In art. 183 par. 1 is amended as follows:
"(1) The municipalities with unemployment higher than the national average, for the purposes of Art. 184 pt. 1 and Art. 189, para. 1, p. 3 shall be determined annually by the Minister of Finance on the proposal of the Minister of Labour and Social Policy, which is published in the "Official Gazette".
5. In art. 219 par. 2 and 3 are canceled.
6. In chapter thirty-second Section II "Tax on gambling activities of toto and lotto games with betting on sporting events and horse and dog games with betting on chance events and betting-related knowledge of the facts, including organized remote "with art. 220, 221, 222, 223, 224, 225 and 226 shall be repealed.

7. In chapter thirty-second Section III "Tax on gambling activities of lotteries, raffles and numerical lottery games Bingo and Keno, including organized by distance" with art. 227, 228, 229, 230, 231, 232, 233 and 234 shall be repealed.
8. In chapter thirty-second title of Section IV is amended as follows: "Tax on gambling activities from games where the stakes for participation by the price of telephone or other electronic communications service".
9. In art. 235 words "organized by distance" are deleted.
10. In art. 236 words "organized by distance" are deleted.
11. In chapter thirty-second title of Section V shall be amended as follows: "Tax on gambling activities from games to slot machines and games in a casino."
12. In art. 242:
a) the previous text becomes para. 1 and the words "including organized by distance" shall be deleted;
B) a par. 2:
"(2) The gambling activity of games with slot machines and games in a casino organized online, subject to corporation tax."
13. In art. 243 words "Art. 242 "are replaced by" Art. 242, para. 1 ".
14. In art. 244:
a) t. 1, 'and / or virtual slot machines "are deleted;
B) in item. 2 the words "and / or virtual gaming tables" and "and / or virtual slot machines" are deleted.
15. In art. 245, para. 1:
a) t. 1, 'and / or virtual gaming machine "shall be deleted;
B) in item. 2 the words "and / or virtual roulette with the maximum number to 10 simultaneous gaming sessions" shall be deleted;
C) t. 3, 'and / or other virtual gaming equipment with a maximum of up to 7 simultaneous gaming sessions "shall be deleted;
D) Point 4 is repealed.
16. Articles 268, 269, 270, 271, 272, 273 and 274 are canceled.
17. In additional provisions in § 1 p. 69 is canceled.
§ 29. The paid up to December 31, 2013 tax on unused tokens certifying participation is refunded to the person under the repealed Art. 233 of the Law on Corporate Income Tax, when after that date any of the following circumstances:
1. completion of the share (circulation) lotteries or
2. termination of license of the organizer pursuant to Art. 35, para. 1 pt. 4 of the Gambling Act.
§ 30. Chairman of the State Commission on Gambling and chairman of the State Agency "National Security" within March 1, 2014 in a joint instruction shall determine the manner of interaction in the implementation of measures for prevention, control and prevention organization illegal gambling activities, mediation and support of individuals and legal entities of the organizers of illegal gambling activities and measures in the field of information security.
§ 31. The pending proceedings for the issuance of licenses shall be completed on the terms and conditions provided for in this Act.

§ 32. The budget of the Ministry of Culture annually translates targeted subsidy for the National Fund "Culture" at the rate of 10 per cent of the paid during the previous year of stamp duty under Art. 30 para. 3 and variable part under par. 4.
§ 33. (1) A person included in the list of art. 22, para. 1, p. 14, which submitted a request for a license to organize gambling within March 31, 2014 is excluded from the list of the filing date of the application until the date of the decision of the commission.
(2) In the case of a judgment for denial of a license, including when the decision is appealed, the person included in the list of art. 22, para. 1, p. 14, from the date of the judgment.
§ 34. This Act shall enter into force on January 1, 2014
law was adopted by the 42 th National Assembly on December 19, 2013 and was affixed with the official seal of the National Assembly.
Chairman of the National Assembly Mihail Mikov
9616