The Bulgarian Ministry of Finance recently announced that it plans to tax and regulate Internet gambling, but the plans appear to be a way to shore up support for the current national monopoly.

http://www.theregister.co.uk/2007/11...line_gambling/

The proposed regulations would allow the Bulgarian sports betting monopoly to develop new online games as well as hitch up with private companies, thus feathering the treasury while injecting much needed capital and expertise. The so-called "sports totalisator" would be able to, at least in theory, move into new markets, while taxing income from an anticipated expansion in online gambling.

The problem with the current system in Bulgaria is a confluence of excessive regulation and a thriving black market for internet gambling. The sports book and government lottery are required to disburse 50 per cent of their revenues as winnings, which, after the government takes its cut, means that total disbursements eat up a whopping 85 per cent of revenues. Not exactly a recipe for profitability.

Since estimates put current revenues from legal betting in Bulgaria at around $520m, with apparently another $440m gambled illegally, the government clearly feels cut out of much of the action. Old habits die hard.