Armenia doubles betting duty in fight against gambling addiction
Armenia to double gambling duty
Armenia’s state duty on gambling will double after parliament approved the bill in its second and final reading.
The law will take effect on April 1. According to the bill’s author, ruling party MP Hayk Sargsyan, the increase in betting duties and higher taxes on online casinos and bookmakers is expected to bring the state around 13 billion drams (over $32 million) in additional annual revenue.
This is part of a broader effort to regulate the gambling industry. The government also plans to establish a gambling oversight body, which will monitor all processes in the sector. Additionally, discussions are underway about restricting betting access for certain groups, such as citizens receiving social assistance.
“We have an agreement: until the oversight body is operational, the duty will continue to rise. This is not just a fiscal measure but also a way to eliminate various lobbying obstacles,” said Armenian Prime Minister Nikol Pashinyan.
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How gambling duty is doubling
Before the new law, companies operating sports betting were required to pay 50 million drams ($126,000) for every 50 billion drams ($126 million) in bets. Online casinos, in turn, had to pay 175 million drams ($443,000) for every 100 billion drams ($253 million) in bets.
From April 1, 2025, when the law takes effect, sports betting companies will have to pay 100 million drams ($253,000) per 50 billion drams in bets, while online casinos will be charged 350 million drams ($886,000) per 100 billion drams in bets.
Authorities do not rule out further increases, potentially up to five times the current duty in the coming years. According to the bill, by 2028, the duty could triple, quadruple, or quintuple—unless a gambling oversight body is established by then.
If the oversight body is introduced, further increases will be halted. The government intends for this body to monitor the financial operations of gambling companies, tracking the number of bets, winnings, revenues, and profits.
Currently, the State Revenue Committee calculates company taxes based on self-reported data from gambling operators.
In addition to this duty, gambling businesses also pay an annual licensing fee of 600 million drams ($1.5 million), which remains unchanged. They are also subject to corporate profit tax.
Over $2 billion transferred to online casinos in 2024
This figure was revealed by MP Hayk Sargsyan, the author of the gambling duty bill, during a parliamentary session.
“If these funds had been directed into the economy, GDP would have grown by 10–15%, and state revenues by 7.34%,” he noted.
Sargsyan emphasized that gambling clubs and online casinos remain legal in Armenia. He explained this by saying that the authorities currently lack the means to control the internet and block access to foreign online casinos by at least 90%.
The MP also stated that gambling has been a major cause of suicides in recent years, both globally and in Armenia. He claimed that in 2024, over half of the suicides in the Armenian military were linked to gambling losses and debt.
During the discussion, Babken Tunyan, deputy head of the parliamentary economic affairs committee, clarified that the bill aims to ensure fair taxation rather than prevent gambling expansion.
He reminded lawmakers that a law on a gambling oversight body was passed last year, but the institution must be implemented in 2025. According to Tunyan, the government should take all necessary measures to limit the spread of gambling as quickly as possible—even if it requires strict interventions.
“Restrict access to betting platforms for vulnerable groups”
Armenian Prime Minister Nikol Pashinyan believes that identification mechanisms should be introduced to prevent socially vulnerable groups and welfare recipients from accessing betting platforms:
“If someone is placing bets and then receiving state benefits, we must provide the benefits, but at the same time, we must ban them from gambling.”
Pashinyan stated that he initially proposed extremely strict measures during discussions on this issue but that the government ultimately opted for a more balanced approach—tightening tax policies and introducing a gambling oversight body instead.
He recalled that in recent years, the tax burden on bookmakers has increased multiple times, and the state duty on betting—now doubling—was introduced.
Regarding the introduction of the gambling oversight body, Pashinyan said it would allow the government to monitor bets, winnings, and taxation. However, he acknowledged the possibility of “artificial obstacles” that might delay the regulator’s entry into the market through various means.
