From 1st January 2025, Uzbekistan is set to undergo a significant transformation in its gaming and betting scene by legalizing online gambling, lotteries, and sports betting. The shift, propelled by a presidential mandate, is designed to regulate these ventures, tackle rogue operations and drive additional state revenue while ensuring consumer protection.
The Initial Framework Appears Encouraging
The new rules mandate that the National Agency for Prospective Projects (NAPP) will approve licenses for arranging risk-based games, lotteries, online gaming, and online bookmaking activities. Such licenses will ensure all betting activities take place ethically and transparently, enforcing rigorous age limitations of 18 years or above.
The revised taxation system mandates that legal entities involved in the industry pay a 4% tax on their net income after deducting payouts and refunded bets. However, individuals will enjoy an income tax exemption on their winnings from licensed activities. Compared to many jurisdictions, these rates are considerably more competitive and are likely geared towards promoting a sustainable market.
In order to ensure legal compliance and curb illegal activities such as money laundering and terrorism funding, the NAPP and the General Prosecutor’s Office have been tasked with monitoring and control duties. Additionally, the Department for Combating Tax and Currency Crimes will also supervise, ensuring the maintenance of gaming industry integrity.
Legalized Gambling Offers Significant Advantages
The decision to legitimize these activities arises from concerns over unlawful gambling, which exposes players to risks such as fraud and financial loss. By situating these activities under legal scrutiny, Uzbekistan plans to safeguard its citizens by steering them towards regulated services. The nation also seeks to exploit the gaming sector’s massive economic possibilities, fuelling community-oriented initiatives.
The Times of Central Asia reported on the viewpoint of Davron Faiziev, the spokesperson for the Uzbekistan Football Association. He endorsed the legalization of betting activities, maintaining that they could serve the sports sector through sponsorships and cited examples from other countries where leading operators actively sponsored sports teams, thereby enhancing their competitiveness.
“By prohibiting betting activities, we forfeit much. Principally, a large stream of money flows into other nations.”
Davron Faiziev, press secretary, Uzbekistan Football Association
As Uzbekistan prepares to welcome legalized gambling and betting, it predicts favorable impacts on its economy and society, promoting responsible engagement and facilitating growth in sectors like sports and entertainment. The nation is soon to disclose its licensing terms, offering more insight into its blueprint for a robust gambling industry.
