Uzbekistan approves licensing rules for online gambling and lotteries

Uzbekistan approves licensing rules for online gambling and lotteries

The Cabinet of Ministers of Uzbekistan has approved detailed requirements and conditions for obtaining licenses to organize online gambling, lotteries, and betting activities. The resolution, adopted on December 6 and published on December 12, implements an April presidential decree that permits online gambling and bookmaking activities starting January 1, 2025.

Licensing and Regulatory Framework

Under the new rules, organizers of online games, lotteries, and betting activities must obtain licenses issued by the National Agency for Prospective Projects (NAPP). Licenses are valid for five years, with the cost of a new license set at 18.75mn soums (around $1500). Changes to licenses require a fee of 9.375mn soums ($730).

Organizers can only use domains within Uzbekistan’s national internet segment to provide services. Online gaming software and random number generation technologies must be certified by authorized bodies and testing laboratories designated by the licensing authority.

Financial Requirements for Organizers

The government has set minimum financial thresholds for organizers:

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

Lottery ticket revenue distribution mandates at least 50% of income for traditional lotteries and 75% for electronic lotteries be allocated to prizes.

Regulations on Player Participation

Player participation in gambling and lotteries is considered legal if conducted through licensed platforms, with identity verification and transactions carried out electronically. Uzbekistan’s government will maintain a Unified State Register of Bets and Players to manage player records, restrictions, and transaction limits.

Participation is prohibited for individuals under 18, as well as categories of citizens to be determined based on factors such as age, health, and income sources. A list of individuals barred from gambling, including those with self-reported gambling addiction or court-ordered restrictions, will be maintained.

Restrictions on Activities

Key prohibitions include:

• Physical gambling venues, such as casinos or slot machine halls, outside of lottery ticket sales points.
• Betting on local events or youth sports, with exceptions for international competitions.
• Payments for gambling participation made from bank accounts or cards belonging to minors.

NAPP is tasked with monitoring compliance, including inspecting foreign entities offering services to Uzbek residents. Non-compliant foreign entities may face fines, 50% of which will be allocated to NAPP. Additionally, organizers must comply with regulations limiting ownership complexity, prohibiting individuals linked to financial crimes or past violations from holding leadership positions.

The government will establish procedures for digital identification of participants. Verification requires photo identification, with data cross-referenced against government databases.

Implementation Timeline

By January 1, 2025, NAPP must finalize regulatory documents and establish mechanisms for licensing, monitoring, and managing gambling activities. The Ministry of Internal Affairs, Central Bank, and Tax Committee will collaborate to prevent illegal gambling operations and enforce compliance.