Bookmaker activities will be allowed in Uzbekistan since 2025

On April 19, President of Uzbekistan Shavkat Mirziyoyev signed a decree on measures to improve regulation of the organization and conduct of lotteries and risk-based games. This was reported by the correspondent of “Gazeta.uz” with reference to the press service of the National Agency for Prospective Projects (NAPP) and the Ministry of Justice.

According to the document, from January 1, 2025, the organization of risk-based games on the Internet and bookmaking activities is permitted based on NAPP licenses.

NAPP is determined by the authorized state body for regulation and licensing of activities for organizing games on the Internet, and bookmaking activities, as well as activities for organizing lotteries. It will establish the procedure for their licensing.

State bodies and organizations, local government authorities, as well as charitable foundations and organizations will be able to conduct lotteries exclusively through lottery organizers on a contractual basis.

Only residents and non-residents of Uzbekistan over 18 years of age are entitled to participate in bookmaker bets, online games and lotteries organized on the basis of an issued license.
From January 1, 2025, for a period of 5 years, legal entities organizing online games, lotteries and engaged in bookmaking activities will become payers of turnover tax at a rate of 4%, levied on total income minus all paid winnings and returned bets.

Income of individuals received from winnings in online games, bookmaker bets and lotteries conducted on the basis of licenses issued by NAPP are exempt from payment of personal income tax.

NAPP and the Department for Combating Economic Crimes under the Prosecutor General’s Office will monitor and control the activities of organizers of lotteries, online games and bookmaking activities in terms of their compliance with legislation on combating the laundering of proceeds from criminal activities, the financing of terrorism and the financing of the proliferation of weapons of mass destruction .

Rationale

The decree notes that the current prohibitions on the creation of national providers for conducting online games based on risk, as well as the lack of legal regulation and the steady interest of citizens in this area, “become the reason for their active use of foreign and illegal services.”

A statement from the NAPP press service states that the decree was developed on the basis of “a thorough study of advanced foreign experience for the introduction of modern technologies in the field of regulation of activities related to the organization of risk-based games and lotteries.” When preparing the document, the experience of Singapore, Hungary, South Korea, Georgia and a number of other countries was studied.

The agency notes that these measures are aimed at protecting the rights and interests of citizens, preventing and combating gambling addiction, as well as preventing the outflow of funds from the country.

In particular, the measures provided for by the decree include the introduction of mechanisms for organizing the activities of national providers for organizing risk-based games and monitoring their activities, protecting from participation in games those with an excessive dependence on games and certain categories of citizens.

According to NAPP, the implementation of the decree will create a reliable basis for the legal regulation of online games based on risk, bookmaking activities and lotteries, introduce effective mechanisms to protect the rights and interests of citizens participating in legally organized games, combat gaming addiction, and also provide additional sources of income for the country’s state budget, which can be used for various social purposes.