The Uzbek Cabinet of Ministers has taken a major step by approving new regulations for the licensing of lotteries, betting enterprises, and online gambling. Following a presidential decree issued in April, the resolution was published on December 12th, opening the door for these operations to start on January 1st, 2025.
The National Agency for Prospective Projects (NAPP) requires licensed operators to work in the internet gaming and betting industries. A new license costs 18.75 million soums, or about $1,500, and any revisions cost 9.375 million soums, or $730. The license is good for five years.
To operate legally, businesses must meet strict financial thresholds. For online gambling and betting operators, the minimum authorized capital is set at 56.25 billion soums ($4.4 million), with a reserve fund requirement of 28.125 billion soums ($2.2 million). Lottery operators face slightly lower thresholds, with a minimum capital of 20.625 billion soums ($1.6 million) and a reserve fund of 15 billion soums ($1.2 million). Notably, at least 50% of revenue from traditional lotteries and 75% of electronic lottery income must be allocated to prizes.
Regulation of Online Gambling Activities
The new regulations place a significant focus on player protection and transparency. Participants can only engage in gambling through licensed platforms that verify their identity and process transactions electronically. The government will maintain a Unified State Register of Bets and Players to monitor participant records and impose transaction limits where necessary.
Participation is strictly limited to individuals over 18, with additional restrictions on certain citizens, including those with gambling addiction or those barred by court orders. NAPP will oversee compliance, ensuring foreign operators follow the rules, with non-compliant entities facing fines.
Additionally, the government is taking measures to regulate the ownership structure of gambling companies. Individuals with ties to financial crimes or prior legal violations will be prohibited from holding leadership roles.
The digital identification of participants is a crucial component of the regulation. Players will be asked to submit photo identification, which will be compared to official databases in order to confirm their identities. With assistance from the Central Bank, Tax Committee, and Ministry of Internal Affairs, the NAPP has until January 2025 to complete licensing processes and oversight systems.
The country’s goal to create a safe and regulated market for online gaming and betting is demonstrated by Uzbekistan’s quest for a regulated gambling environment.
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