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The Cabinet of Ministers of Uzbekistan has unveiled a detailed regulatory framework for online gambling and lotteries starting January 1, 2025. Under the new resolution that was adopted on the 6th of December and published last Thursday, detailed requirements and conditions for obtaining licenses to organize online gambling, lottery, and betting services have been approved.
Under the new legal framework, operators will be required to obtain their licenses from the National Agency for Prospective Projects (NAPP) for 18.75 million soums (around $1500) and renew them every five years for a fee of 9.375 million soums ($730).
Operators must also provide services with domains that are within the country’s internet segment, and all random number generation technologies need to be verified and certified by NAPP-approved authorized bodies and testing laboratories.
Operational and Financial Requirements for Operators
Participating in gambling and lotteries is only legal if conducted through licensed platforms. Identity verification and transactions will also be carried out electronically, plus the Uzbekistan government will establish a Unified State Register of Bets and Players to keep track of player records, transaction limits, and monitor restrictions.
Individuals under the age of 18 are prohibited from gambling in Uzbekistan, along with other specific groups identified based on various factors, including age, health, and income source. The government will also keep a registry of individuals who have reported gambling addiction, as well as those subject to court-imposed restrictions.
The government also imposed minimum financial requirements for operators.
- 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).
Lottery ticket revenue distribution mandates at least 50% of income for traditional lotteries and 75% for electronic lotteries be allocated to prizes.
Prohibited Activities Outlined by the Cabinet
- Physical gambling venues, such as casinos or slot machine halls, except for lottery ticket sales points.
- Betting on local events or youth sports, with exceptions for international competitions.
- Payments for gambling made from bank accounts or cards belonging to minors.
The NAPP has been tasked with overseeing compliance with the regulations and will also be in charge of monitoring offshore operators offering services to Uzbeks. Operators who fail to comply with the new regulations may face fines, with the NAPP set to receive 50% of the penalties. The new framework also bans individuals who have been linked to financial crimes or previous regulatory violations from occupying leadership positions within licensed operators.
All regulatory documents required for the licensing, monitoring, and managing of gambling operators are expected to be finalized by the NAPP before 1 January 2025. The Tax Committee, Ministry of Internal Affairs, and Central Bank will also assist the regulator in preventing illegal gambling and ensuring compliance with the new regulations.
Source: YogoNet
