Uzbekistan Embraces Legalization of Online Betting and Lotteries

Uzbekistan Embraces Legalization of Online Betting and Lotteries

President Shavkat Mirziyoyev of Uzbekistan enacted a decree on April 19 titled “On Measures to Improve the Regulation of the Organization and Conduct of Lotteries and Risk-Based Games in the Republic of Uzbekistan.” Effective January 1, 2025, this decree signifies the abolition of the ban on online betting and lotteries, ushering in a structured legal framework for their operation and oversight.

The decision to legalize betting activities within Uzbekistan has been the subject of extensive deliberation and evolution. Initially, in December 2019, the president took a step towards legalization by signing a decree to authorize bookmakers. However, this decision underwent revision in April 2022. Subsequently, in April 2023, the government developed a regulatory framework tailored to the dynamics of betting activities, indicating a nuanced and evolving approach to regulating the gambling sector.

Acknowledging the necessity of state intervention to regulate the gambling landscape effectively, the National Agency for Advanced Projects (NAAP), serving as the designated regulatory body for licensing and oversight, has underscored the imperative of introducing state-sanctioned regulation in the gambling sphere. The agency's emphasis on curbing illegal gambling operations, safeguarding players' rights, and bolstering state revenues reflects a comprehensive approach towards establishing a robust regulatory framework.

President Mirziyoyev's decree is strategically positioned to integrate international best practices and contemporary technologies into regulating risk-based games and lotteries. The overarching objectives encompass augmenting the nation's investment allure, catalyzing tourism prospects, and fortifying fiscal reservoirs through judicious regulatory interventions. By instituting a legal framework for online gambling activities, the government endeavors to engender an environment conducive to responsible gaming practices and transparent operations within the sector.

The decree delineates a multifaceted strategy encompassing various measures to realize its objectives. These measures encompass the establishment of legal frameworks tailored to online gambling, betting activities, and lotteries, the implementation of robust mechanisms to uphold the rights of citizens, and the adoption of proactive measures aimed at addressing concerns related to gambling addiction. Furthermore, the envisaged taxation system for license holders, slated to take effect from January 1, 2025, is positioned as a pivotal instrument to curtail revenue concealment while augmenting the inflow of tax revenues into the state coffers.

The decree's implementation is poised to impart a transformative impetus to Uzbekistan's gaming industry and broader economic landscape. By institutionalizing a regulatory framework for online betting and lotteries, the government aspires to curb the prevalence of illicit gambling activities and foster responsible gaming practices while concurrently unlocking additional revenue streams for the state exchequer. Moreover, the legalization of these activities is anticipated to enhance the nation's investment climate, entice tourists, and catalyze economic expansion.

Uzbekistan's decision to embrace the legalization of online betting and lotteries epitomizes a proactive stance towards regulatory fortification, underpinned by the alignment with global standards and the adept utilization of technological innovations to foster a safer and more transparent gaming milieu. As the nation progresses with the decree's implementation, stakeholders are primed for a confluence of positive outcomes spanning in the gaming industry and the macroeconomic landscape.