Wednesday, 18, December, 2024

The Cabinet of Ministers has outlined the terms and conditions for obtaining a license for online gambling, lotteries and betting in a Dec. 6 Resolution.

The document was adopted to implement the April presidential decree, which paved the way for legalizing online gambling, lotteries and betting games from January 1, 2025.

The government has indicated that participation in online gambling, lotteries and betting organized on the basis of licenses issued by the licensing authority (National Agency for Prospective Projects, NAPP) shall be deemed legal.

Lotteries are organized in the traditional form of issuing lottery tickets on paper, as well as in electronic form.

5-year validity period licenses shall be issued for the conduct of activities on the organization of online gambling, lotteries and betting.

Gambling organizers can use only one domain of the national segment of the Internet to provide their services.

Online gaming software, as well as random number generation technologies for lotteries, must have certificates of conformity issued by authorized bodies and testing laboratories determined by the licensing authority.

Uzbekistan will also keep a Unified State Register of Bets and Players, which includes lists of betting individuals, restrictions, including limits on bet amounts, transactions and payouts on winnings.

According to the resolution, Uzbekistan shall be deemed to be hosting online gambling, lotteries and betting, if at least two of the following criteria are simultaneously met:

  • betting individual is a citizen of Uzbekistan;
  • the game is organized on the territory of Uzbekistan;
  • betting individual participates in the game from the territory of Uzbekistan;
  • an IP address registered in Uzbekistan and/or a mobile phone number with an international code of Uzbekistan is used to access the game;
  • for depositing and withdrawing funds, bank cards issued by banks of Uzbekistan are used, or settlements and clearing are carried out on the territory of Uzbekistan;
  • if the game is intended for players residing on the territory of Uzbekistan, including the provision of the service in the Uzbek language or its advertising.

Organizers of online gambling, lotteries and betting are obliged to register new players, accept bets on bookmaker games and payments for participation in online games only in electronic format through their official website, using the register of bets and players and confirming the identity of a player.

The National Agency for Prospective Projects is granted the following powers:

  • To inspect the activities of foreign legal entities providing services for the organization and conduct of risk-based games and lotteries for residents of Uzbekistan. At the same time, such inspections are not subject to regulatory acts on state control over the activities of business entities in the Republic of Uzbekistan;
  • To apply fines to foreign legal entities for violating the legislation in the field of organizing and conducting lotteries and risk-based games. In this case, 50% of the fine is sent to the account of the licensing authority;
  • Use sound judgment when licensing, regulating and monitoring activities related to organizing lotteries, online games and bookmaking;

NAPP shall keep the following lists:

  • List of categories of citizens of Uzbekistan and foreign citizens who are prohibited from participating in risk-based games, lotteries and bookmaking on the Internet;
  • List of persons addicted to risk-based games. An individual may be included in this list at his own request for a period of 6 months to 5 years or at the request of a close relative based on a court decision for a period of up to 5 years.

Requirements for organizers of games and bets

Only legal entities - residents of the country can organize online gambling, betting and lotteries in Uzbekistan. They must host the servers on which the games are organized on the territory of the country.

The minimum authorized capital for organizers of games and bets is 150 thousand basic calculation units (56.25 billion soums), and for lotteries - 55 thousand BCU (20.625 billion soums).

Moreover, a reserve fund of 75 thousand BCU (28.125 billion soums) for games and bets and 40 thousand BCU (15 billion soums) for lotteries must be formed in a special bank account. This money will be used to pay off debts on winnings, return bets, fulfill tax and other obligations.

Following persons cannot become managers of online gambling, lotteries and betting organizing firms, those who:

  • participated or are suspected of participating in terrorist activities or the proliferation of weapons of mass destruction;
  • are suspected of or convicted of economic crimes, money laundering, terrorist financing, organized crime, drug trafficking, corruption, cybercrime, and the conviction of such persons has not been expunged or expunged;
  • were founders, chief accountants or held executive positions in companies that lost their gambling license due to violations of licensing requirements less than three years ago;
  • were members of the executive body of a company declared bankrupt less than two years ago.

In addition, owner of the organizing company cannot be a resident of a country that does not participate in international cooperation to combat money laundering, terrorist financing and the proliferation of weapons of mass destruction.

License fee

Each type of activity requires a separate license.

Fee of 500 BCU (18.75 million soums) is charged for a new license, and 250 BCU (9,375,000 soums) is charged for changing it.

The NAPP will charge 1% of all bets from bookmakers and gambling organizers, as well as from the proceeds of each lottery ticket. Lottery organizers pay a fee of 0.1% of the prize fund for approving the requirements for holding a lottery.

Prohibitions

When organizing and holding online gambling, betting and lotteries, it is prohibited to:

  • make payments related to participation, winning or losing in gambling, lotteries and bookmaker bets, from bank accounts, including bank cards, owned by persons under 18 years of age;
  • create stationary or mobile gaming halls, casinos, slot machine halls or other gaming establishments intended for gambling that require the direct participation and presence of players, outside of points of sale of lottery tickets;
  • eand hold bets on events (sports games and competitions, political processes, contests and others) taking place on the territory of Uzbekistan and with the participation of citizens of Uzbekistan. The exception is international sports competitions and events held with the participation of spectators, where appropriate preparation, control and refereeing are provided in accordance with the rules of international federations;
  • bet on children's and youth sports competitions.

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