SBC News Voice of the Sports Betting Industry
The Republic of Uzbekistan has issued a decree to launch a new gambling regime in 2025, ending the 17-year prohibition of all forms of gambling in the Central Asian nation.
Signed by President Shavkat Mirziyoyev, the government of Uzbekistan will adopt new measures to improve the “regulation of the organization, and conduct of lotteries and risk-based games.”
From 1 January 2025, Uzbekistan aims to launch its new gambling regime, providing a framework to regulate “internet risk games” and sports betting.
President Mirziyoyev has designated the Prospective Projects National Agency (NAPP) as the department that will oversee the launch of the regime, tasked with monitoring all related market activities and license authorizations.
The regime will allow residents and non-residents over 18 to participate in licensed lotteries, internet games, and sports betting.
In 2007, former President Islam Karimov signed an executive order banning all forms of gambling, including lotteries and totalizers.
However, as noted by CIS gambling consultancy 4H Agency, since 2019, the office of President Mirziyoyev has been developing plans to launch a gambling regime, ending Uzbekistan’s prohibition.
A standalone sports betting regime was due to launch in 2021, which was authorized by a decree “to redevelop Uzbek football and sports.”
The plans were shelved when the government failed to determine which department would oversee the responsibilities to modernize Uzbekistan sports and athlete development programs.
Following consecutive failures to launch a standalone sports betting regime, in 2021, Mirziyoyev ordered the Oliy Majlis (Parliament) to draft a comprehensive decree governing all forms of gambling.
During the ‘interim period,’ the government allowed Uzbek football and sports clubs to secure sponsorships with foreign betting companies, fulfilling a pledge of the 2021 Decree on modernizing sports.
On tax, the decree details that from 2025 onwards, entities organizing gambling activities will be taxed at 4% of their revenue “after deducting paid winnings and refunded stakes.”
Meanwhile, for consumers, individual winnings from these activities will be exempt from income tax.
Laying the groundwork to launch the regime, NAPP has been instructed to work with the Department for Combating Economic Crimes to revise and strengthen relevant laws and practices related to preventing financial crimes and money laundering.
4H Agency has detailed a positive outlook for Uzbekistan becoming a dynamic CIS marketplace, with over 90% of its population (35 million) under the age of 60 and a digital connectivity of 72%.
As explained by 4H CEO and Senior Partner, Ilya Machavariani : “We have observed attempts to progress with legalisation in Uzbekistan since 2019, yet they have been unsuccessful thus far. Various governmental bodies have been tasked with this effort, including the National Capital Markets Agency, Ministry of Finance, Ministry of Sports, and now the National Agency for Promising Projects.
We are keen to see how this legalization attempt will unfold, particularly in light of indications regarding the legalization of online casino verticals (as suggested by the term ‘risk-based games’), which were previously discouraged by the government.
In any case, a recent Presidential Decree has mandated the presentation of licensing conditions soon. Consequently, it seems that it will soon become apparent whether this attempt will bear any fruit.“
