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Gambling

Kyrgyzstan Launches Unified State Lottery Infrastructure

Kyrgyzstan is consolidating all private lottery operations into a single, state-controlled system as part of a national initiative to modernize the sector and align it with international standards. The project is being implemented by the Information Security Center in partnership with the state-owned enterprise Kyrgyzloto. Under the new framework, all types of lottery draws in the country will be brought under state oversight. Authorities say the system will provide full transparency over financial flows, enable real-time monitoring of sales and payouts, and protect citizens from unscrupulous operators. The Lottery Information Processing Center will manage real-time data collection on ticket sales, draw results, and prize pools. Financial and fiscal oversight will be conducted by the Ministry of Finance and the State Tax Service. “Our task is to agree on the rules for conducting lotteries and to form a fund for targeted deductions. We intend to unify the draws and channel the proceeds into useful areas,” said Sherik Kasmaliev, director of Kyrgyzloto, during a press briefing. Government projections estimate that over the next ten years, the national lottery could generate approximately $1 billion in tax revenues and licensing fees. Officials also believe the launch of a unified state lottery system will provide a legal alternative to illegal gambling, help curb gambling addiction, and return billions of som previously lost to unlicensed foreign platforms back into the domestic economy. All data processing and storage infrastructure will be located within Kyrgyzstan, which project developers say will enhance cybersecurity and reduce the risk of capital outflows.

Gambling

Kazakhstan Proposes Licensing Bloggers to Curb Online Casino Advertising

Kazakh Senator Gennady Shipovskikh has proposed introducing a blogger licensing system in response to growing violations of the country’s ban on advertising online casinos via social media and messaging platforms. Since 2024, Kazakhstan has prohibited outdoor advertising of bookmakers, online casinos, and betting pools, as well as their promotion in media content, films, and videos. However, the Financial Monitoring Agency (FMA) has identified 34 bloggers involved in promoting illegal online gambling platforms. Eleven of them have already received administrative penalties. The agency now argues that fines are insufficient and is pushing for the introduction of criminal liability for such offenses. Licensing as a Regulatory Tool Speaking at a plenary session of the Senate, Shipovskikh said licensing would provide the legal basis to suspend a blogger’s activity in the event of violations. “We propose, along with the administrative fines currently applied for advertising illegal online casinos and dubious giveaways, to introduce licensing or create a special register of bloggers. This will allow us to regulate their advertising activities and strengthen their accountability before the law,” he stated. Shipovskikh also called for tighter oversight of payment service providers and advertising agencies that may facilitate illegal gambling activities. He further proposed a monitoring mechanism to verify the legality of sweepstakes and giveaways commonly run on social platforms. “We also propose to fully utilize the mechanism of criminal liability for such violations,” he added. Scope of Illegal Gambling and Enforcement Measures According to FMA data, 205 illegal casinos have been shut down in Kazakhstan over the past two and a half years, with 224 individuals facing criminal charges for their involvement. Shipovskikh argued that existing penalties fail to deter offenders: “Ordinary fines do not have the desired deterrent effect. Illegal advertising brings bloggers millions in profits, which significantly exceed the amount of penalties imposed.” Legal Framework Already in Place Speaking to reporters after the Senate session, FMA Deputy Chairman Zhenis Yelemesov confirmed the agency’s intention to pursue criminal liability for advertising illegal casinos, including the confiscation of related income. He also clarified that current law already allows for prosecution in certain cases. “If it is proven that a blogger participated in the organization of a casino, the distribution of profits, or was otherwise involved in a crime, he will be prosecuted as an accomplice,” Yelemesov said.

Gambling

Kazakhstan Considers Criminal Penalties for Promoting Online Casinos

Kazakhstan’s Financial Monitoring Agency (FMA) has identified 34 bloggers promoting online casinos on social media, with 11 already facing administrative penalties. The agency has stated that fines alone are not deterring repeat offenders and is now considering introducing criminal liability for such activities. A law passed in 2024 strictly prohibits outdoor advertising for bookmakers, online casinos, and betting pools, as well as their promotion in media, films, and video content. According to the FMA, over the past two and a half years, more than 200 illegal gambling operations have been dismantled, and 224 individuals have been held criminally accountable. However, the agency notes that the primary threat now stems from online casinos based abroad. Since the beginning of this year, authorities have blocked more than 17,000 links, mostly mirror sites for foreign platforms. Despite these efforts, some Kazakhstani payment service providers continue to facilitate transactions linked to such websites. The FMA has pledged to intensify investigations into these financial intermediaries. Influencer marketing remains a key channel for online gambling promotion. In the first half of the year alone, 34 influencers were identified as advertising gambling services, with 11 fined. But according to the FMA, revenues from such promotions far exceed the cost of the fines, creating incentives for repeated violations. In response, the agency is exploring whether bloggers’ actions could be legally interpreted as aiding and abetting illegal gambling, a charge similar to promoting financial pyramid schemes, which already carries criminal penalties under Kazakhstani law. Currently, fines for illegal advertising on social media start at 200,000 KZT (approximately $420).

State Budget

Low Revenues Cast Doubt on Kyrgyzstan’s Casino Legalization Efforts

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.

Legislation

Casinos in Kyrgyzstan To Open in State Buildings

The Kyrgyz parliament has passed legislation permitting gambling in state-owned facilities. This new law allows for casino activities within buildings owned by the state or enterprises with government stakes, and aims to attract investment, generate employment, and boost tax revenues. Developed by the Ministry of Economy and Commerce and presented to the Cabinet of Ministers, the law overturns previous restrictions by permitting casinos in state-owned hotels to enhance tourism and global competitiveness. Revenues from these casinos will support the development of tourist infrastructure. Historically, gambling was banned entirely in Kyrgyzstan in 2012, but a 2022 law reintroduced it under strict conditions, allowing only foreign nationals to participate. Kyrgyz citizens remain barred from casino entry, and the State Service for Regulation and Supervision of the Financial Market closely oversees operations to ensure compliance.

Legislation

Kyrgyzstan Tightens Gambling Regulations

New rules and requirements for casinos have recently been introduced in a decree signed by Head of the Kyrgyz Cabinet of Ministers, Akylbek Japarov, “On gambling activities in Kyrgyzstan.” In accordance with the document, all transactions taking place within casinos are to be recorded on video cameras installed at cash, currency exchange and registration desks, and all activities in gambling establishments must be filmed in real-time. Recordings must be accessible for at least one month and can be stored for up to three months. Under the new rules, slot machines can only be installed in casinos and gaming zones must be at least 200 square meters. The decree also states: “Bookmaker offices and totalizators can be opened based on a license to organize and conduct gambling in betting offices or totalizators located only in the casino." Gambling establishments have been banned in Kyrgyzstan since 2012. The situation then changed in 2022, when new authorities permitted the reintroduction of casinos, albeit confined to places designated for foreign citizens.