Uzbekistan is set to introduce a legal framework for online gambling, lotteries, and betting activities starting January 1, 2025. The Cabinet of Ministers approved the regulations on December 6, publishing them on December 12, following a presidential decree from April. This marks a significant shift in the country’s gambling laws, granting the National Agency for Prospective Projects (NAPP) authority to oversee licensing and compliance.

Licensing and Operational Requirements

The newly approved rules require organizers of online gambling, lotteries, and betting to obtain a license from the NAPP. These licenses will be valid for five years, with a cost of 18.75 million soums (approximately $1,500) for new applications and 9.375 million soums ($730) for modifications.

Operators must adhere to strict operational and technological standards, including:

• Using domains within Uzbekistan’s national internet segment.
• Certifying gaming software and random number generation technologies through authorized testing laboratories.

Financial thresholds have also been established:

• Online gambling and betting: Minimum authorized capital of 56.25 billion soums ($4.4 million) and a reserve fund of 28.125 billion soums ($2.2 million).
• Lotteries: Minimum authorized capital of 20.625 billion soums ($1.6 million) and a reserve fund of 15 billion soums ($1.2 million).

Additionally, lottery operators are required to allocate 50% of revenue from traditional lotteries and 75% from electronic lotteries as prize money.

Player Participation and Monitoring

Player participation will only be legal if conducted through licensed platforms, with identity verification and electronic transactions. A Unified State Register of Bets and Players will track player records, transaction limits, and restrictions.

The government has imposed strict participation rules:

• Players must be at least 18 years old.
• Individuals with self-reported gambling addiction, court-imposed restrictions, or other designated categories are barred from participation.
• Payments from accounts or cards belonging to minors are prohibited.

The NAPP will monitor compliance with these rules, including inspecting foreign entities that offer services to Uzbek residents. Non-compliant foreign operators face fines, with 50% of penalties directed to the NAPP.

Key Restrictions and Compliance Measures

Several restrictions have been outlined to ensure a controlled gambling environment:

• Physical gambling venues, such as casinos or slot machine halls, are prohibited, except for lottery ticket sales points.
• Betting on local events or youth sports is banned, with exceptions for international competitions.
• Ownership regulations prohibit individuals linked to financial crimes or previous regulatory violations from holding leadership roles in gambling operations.

NAPP will collaborate with the Ministry of Internal Affairs, Central Bank, and Tax Committee to enforce compliance and prevent illegal gambling activities.

Implementation Timeline

By January 1, 2025, the NAPP must finalize all regulatory documents and establish mechanisms for licensing, monitoring, and managing gambling activities. This coordinated effort aims to create a secure and transparent framework for Uzbekistan’s online gambling industry.

Source:
Legal Online Gambling to Launch in Uzbekistan in January 2025, lcb.org, December 18, 2024.

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