On April 19, President Shavkat Mirziyoyev signed the Measures to improve the regulation of the organization and holding of lotteries and betting games Decree, the press services of the National Agency for Prospective Projects (NAPP) and the Ministry of Justice said.
According to the Decree, from January 1, 2025, the organization of betting online and bookmaking will be permitted on the basis of licenses issued by NAPP.
NAPP has been assigned as the state body authorized for regulation and licensing of activities for organizing betting online and bookmaking, as well as for organizing lotteries. It will establish the procedure for their licensing.
Government bodies and organizations, local authorities, as well as charity 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 will be entitled to bet and participate in bookmaking, online games and lotteries organized on the basis of an issued licenses.
From January 1, 2025, for a period of 5 years, legal entities organizing online games, lotteries and bookmaking activities will become payers of 4% turnover tax, levied on total income minus all paid winnings and returned bets.
Income of individuals received from winnings in online games, bookmaking and lotteries held on the basis of licenses issued by NAPP shall be exempt from personal income tax.
Background
The Decree underscored that the current ban on creation of national online betting companies, as well as the lack of regulation and the irresponsible gambling “have become the reason for active use of foreign and illegal services.”
The NAPP’s press service said in a statement that the Decree had been 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 online betting and lotteries.” When preparing the document, the experience of Singapore, Hungary, South Korea, Georgia and a number of other countries was studied.
The Agency noted that these measures were 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 entities of beeting games and monitoring their activities, protecting individuals from irresponsible gambling.
According to NAPP, the Decree will create a reliable basis for the legal regulation of risk-based online games, bookmaking activities and lotteries, introduce effective mechanisms to protect the rights and interests of citizens participating in legally organized betting, address irresponsible gambling, and also provide additional sources of income for the budget, which can be used for various social purposes.
In December 2019, president Shavkat Mirziyoyev signed a decree providing for the legalization of bookmaking from 2021, but in April 2022, Shavkat Mirziyoyev canceled this decision by another decree. In April 2023, he ordered a return to the development of a regulatory framework for bookmaking activities.
