After a decade-long prohibition, Kyrgyzstan legalized gambling – for foreigners – in 2022, anticipating a substantial boost to state revenues. Authorities projected billions of Kyrgyz Som (KGS) in revenue from casinos, betting shops, and slot machines. However, the actual contributions to the state budget have been far more modest, amounting to only a few hundred million KGS.
According to official figures, Kyrgyzstan currently hosts three operating casinos. In their first year, these establishments paid KGS 97 million (approximately $1.1 million) in taxes and other budgetary contributions. By 2024, this figure is expected to rise to KGS 270 million ($3.1 million). While this reflects growth, it remains below the ambitious expectations set by the government.
The underwhelming results have sparked criticism from legislators. Last year, members of parliament voiced dissatisfaction with the meager revenues. MP Sultanbay Aizhigitov expressed frustration, stating: “There is almost no benefit to the state from casino activity. It is a business controlled by five or six individuals, and it causes significant harm. The initiative has not justified itself. Do we need casinos at all? Perhaps it’s better to shut them down.”
Recent data reveals that the majority of gambling revenue – KGS 258 million ($2.8 million) -came from casinos. Betting shops contributed KGS 11 million ($125,000), while slot machine operators added a mere KGS 1.8 million ($20,500).
Notably, the 2022 legislation legalizing gambling in Kyrgyzstan stipulates that only foreign citizens may participate in such activities. Kyrgyz nationals caught gambling face fines, along with the casino hosting them. In an effort to boost revenues, the government has permitted casinos to operate in state-owned buildings and hotels with government stakes.
Despite these measures, however, the financial benefits of gambling legalization remain a contentious issue, with critics questioning its overall value to the country.
