for early access to the latest igaming videos!
and get the latest igaming news first!
Kazakhstan is proceeding with a high-profile development plan for the establishment of new gambling zones across several of its regions, in an effort to enhance local economies and draw visitors. According to a statement by Minister of Tourism and Sports Yerbol Myrzabosynov, the government will establish controlled casino regions within Mangystau, Almaty, East Kazakhstan, and Zhetysu. This development constitutes one of the most significant shifts in the country’s policy on gaming thus far, adding new destinations to the already existing legal enclaves at Borovoye and Kapchagay, with the goal of giving a fresh boost to the national tourism sector.
Strategic Locations Selected
Recent legislative changes have paved the way for the development of these new venues, which are expected to be sited to take advantage of the country’s natural geographic strengths. According to local media reports, proposed locations include the Caspian Sea coastline in Mangystau, areas surrounding Lake Alakol in the Panfilov District of Zhetysu, the Talgar District in Almaty, and sites near Markakol as well as the Zaysan District in East Kazakhstan.
Even as the general areas have been agreed on, the exact territories on which casinos are to be constructed will remain under decision-making. The right to make such decisions rests with regional executive authorities. This system empowers regional governing bodies to identify ideal areas within their administrative divisions. Through this way, new establishments support regional development plans while keeping within the framework established by national law. Today, Kazakhstan allows gambling but confines it exclusively to given zones, in the main located around Almaty and Shchuchinsk, in addition to a controlled online gambling market.
Economic and Employment Impact
Minister Myrzabosynov made it clear what the driving force is: tourism. Taking models that work in other countries, the government hopes to create bustling entertainment complexes that would attract international and domestic travelers alike. The economic forecasts that come with the plan are significant. Every new casino business will bring from 2 billion to 3 billion tenge of tax revenue each year, approximately $4.3 million to $6.5 million. Beyond fiscal benefits, employment potential is equally enormous, with each venue projected to create around 500 new jobs for the local population.
The emphasis is exclusively on economic development, not on loosening the regulatory regime. The minister emphatically denied the possibility of any tax incentives for the industry. He explained that a reduction in tax rates is not being contemplated, underlining that casinos pay taxes per table. The government remains sanguine that the tax receipts will be within the estimated multi-billion tenge bracket, with the state reaping an adequate share of the profits of the new establishments.
Future Growth Potential
This is a development to which the government indicated could be just the beginning: that the number of gambling zones could expand even further. Identifying the current list of zones has simply been to get the initiative up and running, but the framework allows for leeway where authorities can widen the boundaries at a later date if initial success warrants it for further tourism infrastructure development.
This measured yet progressive strategy testifies to Kazakhstan’s intent to become more diversified in its tourism products while retaining a tight regulatory grip. The state looks to a strict policy of confining gambling to certain pre-assigned zones as a means of balancing the potential economic windfalls from a growing gaming industry with social responsibility. Now that the local authorities will go on to select sites, attention shifts to how these regions will transform into new hubs of leisure and entertainment for the next years to come.
Source: Asia Gaming Brief (AGB)
