Uzbekistan President Shavkat Mirziyoyev marks an extreme shift in the country’s gambling policy through a landmark decree. This prohibited all games of chance in the past.
From January 1, 2025, Uzbekistan will witness a milestone shift in its gaming and betting landscape. Uzbekistan will legalize online gambling, lotteries, and sports betting. A presidential decree introduced this move. It aims to regulate these activities. It also aims to combat illegal operators and generate revenue for the state. Additionally, it aims to protect consumers from gambling harm.
NAPP or National Agency for Prospective Projects will issue licenses under the new regulations. These licenses are for organizing risk-based games, lotteries, online gaming, and bookmaking activities conducted on the Internet. Activities will be ensured to be conducted responsibly and transparently. Strict age restrictions will require participants to be at least 18 years old.
Newly established taxation procedures entail legal entities engaged in these activities paying a 4% tax rate on their total income. This applies after deducting paid winnings and returned bets. However, individuals will be exempt from income tax on their winnings from licensed activities. These rates are notably lower than many other jurisdictions and likely aim to foster a competitive and sustainable market.
Monitoring and control responsibilities have been assigned to the NAPP and the General Prosecutor’s Office. This is to ensure compliance with legal regulations and prevent illicit activities like money laundering and terrorism financing. The Department for Combating Tax and Currency Crimes will provide oversight. It will also help maintain the integrity of the gaming industry.
The decision to make these activities legal comes in the middle of concerns about the commonness of illegal gambling. This exposes participants to risks like fraud and financial losses. By bringing these activities under legal oversight, Uzbekistan aims to protect its citizens by channeling them to regulated offerings. The country also hopes to tap into the gaming sector’s extensive economic potential, strengthening community-focused initiatives.
