Armenia Introduces Higher Gambling Fees

Doubling of State Duties for Online Casinos and Betting

Armenia’s National Assembly has approved new legislation that will significantly raise state duties for the gambling sector. The bill, passed with 58 votes in favor, is part of the government’s broader strategy to regulate the industry more strictly and address concerns over gambling addiction.

Under the new framework, state duties for online casinos and bookmakers will double starting April 1, with further increases planned until the establishment of a dedicated regulatory body to oversee the sector. According to lawmaker Hayk Sargsyan, the changes are expected to generate an additional AMD 13 billion ($32 million) in annual state revenue.

Tax Provisions and Industry Reactions

The initial draft of the legislation had proposed a 10% turnover tax on gambling operators, but this provision was removed before the final vote. However, the approved version still imposes significant financial burdens on operators.

The Ministry of Finance had expressed concerns over the tax hikes, warning that excessive increases in duties and licensing fees could push operators to offshore jurisdictions and encourage unregulated gambling markets. Earlier in 2024, the government had already introduced taxes on gambling winnings exceeding AMD 5 million ($12,689).

Following negotiations, the final version of the bill includes a quota system for licenses and a phased increase in fees. Additionally, the government plans to introduce two new regulatory bodies—the Gaming Sector Monitor and the Gaming Operator Institute—to enhance oversight.

Gradual Fee Increases Until 2028

The updated tax structure introduces progressive fee hikes tied to betting volume. Once an online casino surpasses AMD 100 billion ($250 million) in accepted bets or a bookmaker reaches AMD 50 billion ($125 million), they will be required to make additional payments.

From April 2025, license fees will double from current levels, with casinos paying AMD 350 million ($890,000) and betting operators AMD 100 million ($253,000). These fees will increase further, reaching a multiplier of 3.0 in 2026, 4.0 in 2027, and 5.0 in 2028, potentially raising casino fees to AMD 1.4 billion ($3.5 million).

According to Anastasiya Yautodzyeva, Head of Analytics at 4H Agency, the fee structure will continue escalating until the new regulatory institutions are fully functional.

Economic and Social Implications

The government argues that the reforms are necessary to mitigate gambling-related social issues. In 2024, online casinos in Armenia saw deposits exceeding AMD 811 billion ($2 billion). Lawmakers believe redirecting a portion of gambling revenues into the economy could boost Armenia’s GDP by up to 15% and increase state revenues by 7.34%.

Additional restrictions are also under consideration, including limiting gambling access for vulnerable groups and public officials.