The government of Kazakhstan authorized amendments to the Tax Code for licensed gambling operators to report on Kazakh citizens’ wagering activities.
Mazhilis (Parliament) approved a mandate in November. It has been implemented on February 12, 2024. Kazakh gambling operators must submit customer reports to the State Revenue Committee.
All Kazakh-licensed gambling firms must ensure a direct communication for reporting obligations with the SRC. Kazakhstan becomes the first nation in Central Asia to impose such a measure monitoring individual gambling activities.
Aliya Jetibaeva, the SRC Director, promised to keep Kazakh consumers’ information and bets confidential under Article 30 of the Tax Code.
The SRC outlined on the sensitive matter of consumer confidentiality. They outlined that reporting obligations complied with OCED rules. The tax authority has cited that all staff signed non-disclosure agreements to protect confidential information. This includes tax and custom secrets.
Showing the importance of information security, authorities can hold civil servants criminally liable for unauthorized disclosure of confidential information.
4H Agency, a CIS gambling consultancy conducted an inspection. The legislation forces banks and financial organizations to share legal entities’ financial transaction details with tax authorities when asked, improving tax oversight.
4H Agency also stated that customer reporting obligations indicated a tightening of tax supervision imposed on gambling operators. In connection to this, the SRC can inspect financial transactions through banks as a principal control.
Dmitry Hotsyn said Kazakhstan’s adoption of the European model of gambling market control is uncertain. The purpose of this is to develop a unique approach.
Hotsyn said it’s not clear if Kazakhstan will follow the European gambling model or create their own approach since the recent law changes only require operators to provide information.