Kazakhstan overhauls laws in bid to curb gambling addiction and boost regulation

Shirley Pulis Xerxen November 24, 2023

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Kazakhstan overhauls laws in bid to curb gambling addiction and boost regulation

In a significant move to address rising concerns over gambling addiction and financial hardships among its citizens, the Kazakh parliament has approved sweeping changes to the country’s Tax Code, requiring gambling and lottery operators to furnish detailed reports on local players’ activities.

Under the newly endorsed rules, owners of gambling and lottery companies must submit comprehensive information, including the size of bets placed by players, data on gambling losses and winnings. The information is mandated to be submitted online to Kazakhstan’s National Tax Authority. To ensure compliance, operators are also required to adopt new technology systems that automatically transmit the necessary data to the authority.

In an unprecedented step, Kazakhstan is also placing an obligation on national banks to provide information on gambling transactions conducted by local players within 10 days of the transaction. The provided data must encompass ‘balance transfers’ and the authorization of individual transactions with gambling operators.

Gambling addiction

This legislative overhaul aligns with President Kassym Tokayev’s ongoing efforts to address the growing rates of gambling-related harm, particularly among the younger demographic. Despite these changes, President Tokayev has not unveiled plans for a dedicated regulatory framework, leaving the country without clear guidelines akin to other modern gambling markets.

Vice Minister Yerzhan Erkinbayev has spearheaded the review of the country’s gambling rules, releasing the first set of proposals weeks ago. Among these proposals is an increase in the legal age for gambling from 21 to 25, along with stringent penalties for operators offering gambling to underage customers.

President Tokayev is currently reviewing these recommendations, suggesting further changes may be on the horizon for Kazakhstan’s gambling sector. This development follows the collaboration earlier this year between leading esports wagering solutions supplier Oddin.gg and Kazakh sports betting operator Olimpbet.

The government’s directive requiring detailed reports on gambling activities and profiles of Kazakh citizens has received approval from the deputies of the Mazhilis (Parliament). This move underscores Kazakhstan’s commitment to reining in the negative consequences of gambling while enhancing regulatory oversight.

As the nation undergoes this radical overhaul of its gambling laws, concerns persist about the absence of a dedicated legislative framework since Kazakhstan’s independence from the Soviet Union in 1991. The only regulatory policy, authorized in 2007, permitted the provinces of Almaty and Akmola to establish state-owned casinos in designated ‘authorized gambling zones.’ President Tokayev is reportedly reviewing 62 recommendations related to gambling, lotteries, and other betting activities, emphasizing the need for urgent change without explicitly outlining plans for a specific gambling law for Kazakhstan.

Interested in learning more about regulation and responsible gaming?

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