The Gaming Industry - a Business Like Every Other One

A vice, a privilege, or just a need? The gaming business in the world today is an integral part of the surrounding environment, accounting for an evergrowing share in the gobal economy.

The public interest to this complicated and contradictory activity has also grown. Attitudes are controversial – from full rejection to full acceptance. Constantly discussed, the topic of gambling attracts the attention of people with different status, mentality, culture, values and interests. Despite of all developments in this industry, the attitudes of society members are different. This is a natural result of both – paradigms from the past, and the way the gaming industry functioned in Bulgaria – behind solid closed doors and dark windows. The impossibility to see what is happening inside and the seeming secrecy automatically nourish negative attitudes. It is a fact, however, that the business is already changing and becoming more and more transparent for the society, while the people are increasingly looking for more comprehensive ways to spend their leisure time, also gaming in a casino. There are numerous examples about this both from Europe and other continents. As we live in a market economy, it is only natural that if there is a demand there is a supply too. What matters is to put this business, like every other business, under strict regulatory control, so that the users of the service are protected form abuse, to set clear rules and sanctions for non compliance, and guarantee the contribution of the business to the state budget.

The gaming industry in Bulgaria started 15 years ago, after the landmark year of 1989. Naturally the sector went through various stages of development and scale until a strict legal framework was established.

The legal framework of the industry is set in the Law on Gambling adopted in 1999 and amended 12 times since then. The beginning of the legalization of this activity dates back to 1993 when the Decree on the Terms and Conditions for the Issuance of Permits for Organization of Gambling Games was adopted. The Decree has been regulating the activity for 7 years and was amended 8 times, gradually curbing the chaos on the market since 1989 and setting new rules. In the period prior to 1993, the dice games, Antenary Bank, and the street tricks with dice involving betting were the main business of people with suspicious reputation. The heavy economic condition of the country during the transition period and the hope to gain some easy money encouraged the citizens to practice such games. At the moment the gaming business is well regulated. The government policy in the sector is implemented by the Commission of Gambling, the competences of which include licensing, supervision and control.

The games of chance are a complex social phenomenon, which cannot be defined synonymously. The image of the industry depends on a whole range of factors, connected with the nature of society – the religious values, existing paradigms, the perceptions of “benefits and harms” attending the economic and social processes, the existence or absence of a regulatory framework. Every time when gaming is discussed in our country the dilemma about gambling pops out – where is the place of this activity in the Bulgarian reality, to what an extent it should be permitted, and should it exist at all? Although the time when gambling was forbidden has past long ago and society’s attitude has changed, there are still some negative images and feelings dominating in the public space. This refers above all to the so-called hard gambling practiced in the casinos, bingo halls and gaming halls /electronic casinos/. Due to the long traditions of “soft gambling” - the “toto” /number game/ and the lottery, the latter are perceived by society as a rather normal phenomenon. This shows that the image of the gaming business is strongly polarized, depending on the manner of its manifestation. Almost no attention is devoted to the “good” sides of the business: the gaming industry is a solid source of income to the budget, and the taxes it pays constitute to the development of socially important activities. One should not disregard also the contribution of the industry to job creation, the investment in the training of employees and the development of infrastructure. It is also often forgotten that gaming is an integral part of the entertainment industry, which plays an ever-growing role in tourism.

The Industry in Figures The analysis of the gaming industry, based on several factors like the size of the market, geography, participants, and level of regulation, reveals a good potential and prospects for development in Bulgaria. According to the data of the State Commission of Gambling there are 21 casinos, 35 Bingo halls, 974 gaming halls /electronic casinos/ , 86 licensed companies engaged in the import, maintenance and manufacturing of gaming equipment, and 2 operators of sports bets in the country. A survey ordered by the Commission reveals that the gaming facilities are concentrated predominantly in the big cities and the tourist destinations. For example, there are 5 casinos in Sofia, 4 – in Varna, 3 - in Bourgas, 2 - in Plovdiv 1- in Blagoevgrad. Most popular are the sites with slot machines and they can be seen in almost all cities in the country. Biggest is the number of gaming halls in Sofia - 210, Plovdiv - 205, Sofia region - 152, Varna - 143, Veliko Turnovo - 122. This geographical spread is not accidental. The modern geography of the gaming market is a result of the economic, social and demographic conditions, the supply and demand. The bigger concentration of the population, as well as the intensive flow of tourists are a natural precondition for more intensive offering of these services in the bigger towns. To complete the picture of gaming, we should also mention the “Toto” /number game/ and the State Lottery. These are the two state games of chance that have existed as an integral part of the urban culture long before the regulation of the private sector.

Gaming, as a form of entertainment, is most often associated with the visible part of the industry – the organization of games in casinos, bingo halls and gaming halls, as a form of entertainment and amusement. Behind the curtains remains another integral part of the business which contributes to the gross domestic product - the manufacturing of gaming equipment. This side of the industry is little known to society and still behind the curtains, but without it the modern casinos, bingo halls, gaming halls, toto and lottery outlets could hardly functions. To a very high extent the quality of the services depends on the quality of the equipment, which is essential for the business. The development of the new technologies has radically changed the face of the gaming industry – the classic table games like roulette, Black Jack and poker were replaced by modern electronic games – a real challenge for the highly skilled teams of engineers, artists, animators, composers and musicians. The modern casino offers products which combine computer animation, sound and multimedia. The mix of high technologies and arts is at the basis of the modern gaming equipment. The production of gaming equipment is a complex process and a part of the engineering and hightech industries. At the moment there are about 10 licensed Bulgarian manufacturing companies, some of them with high reputation, good history and positions on the international market.

Gaming in Bulgaria is represented by two professional organizations. Members of these organizations are licensed operators of games of chance and manufacturers of gaming equipment. These are the Bulgarian Trade Association of the Manufacturers and Operators in the Gaming Industry (BTAMOGI) and the Bulgarian Association of Entertainment and Gambling (BAEG).

The Future

As every activity the gaming industry is also looking for the right direction. It is clear for everyone that the time of small scale and accidental initiatives is over. Gaming in Bulgaria today is a well regulated, modern and smoothly developing business. It is faced with new challenges in the direction of integration with other similar activities from the entertainment and tourist sector, following the trends in other modern economies, where integrated infrastructure complexes are built to become preferred locations for entertainment and vacation tourism. The mix of services speaks for itself – attractive tourist destinations, which generate substantial income and change the social and economic face of the region!