Armenias gambling industry has seen remarkable growth over the past decade, establishing itself as a significant pillar of the national economy. In 2022, revenue from lotteries, gambling, and 바카라s amounted to approximately 18.8 billion drams (43.5 million), making up 10.4 percent of the countrys services sector.
This expansion has led to a surge in betting companies, some of which are now among Armenias largest taxpayers. However, with growth comes concern, particularly regarding the social consequences of gambling addiction.
Official figures from 2024 reveal that over 7 trillion drams (16.7 billion) were wagered on gambling activities, a staggering seventeen fold increase compared to 2018. The majority of these bets were placed online.
Strict rules to curb addiction crisis
The Armenian government has acknowledged the risks posed by gambling, particularly among young people. Reports indicate that between 2018 and 2020, betting activity surged sixfold, a trend that shows no sign of slowing. More alarmingly, in 2024, it was reported that over half of the suicides within Armenias military were linked to gambling-related debt.
In response, the government introduced stricter regulations in 2022, including a ban on public advertisements for gambling and lotteries. Further measures are set to come into effect in 2025. From April, state duties on gambling activities will double as part of an effort to strike a balance between economic benefits and social responsibility.
Additionally, Prime Minister Nikol Pashinyan has revived a proposal to introduce a 10 percent turnover tax on online 바카라 gaming revenue, which would be in addition to existing taxes and duties. Notably, this tax would not apply to bookmakers and is scheduled to take effect on 1 April.
PM Pashinyan has made it clear that a complete ban on gambling is not a viable option.
Pushback? next big challenge
If people dont place bets in Armenia, they will do so in another country. These are online bets. And if we restrict the internet, I am sure there will be many comments accusing us of limiting peoples freedoms and taking a dictatorial step, the Prime Minister stated during his latest press conference.
However, the actions via Yerevan speak otherwise. While there has been no strong opposition from 바카라s or bookmakers regarding these new measures, concerns have emerged from within the advertising sector. claim that 60 to 70 percent of their revenue comes from online gambling and lottery promotions. However, government officials argue that the actual figure is significantly lower, closer to 20 to 25 percent.
This is not the first time Armenias gambling industry has faced regulatory pushback. In 2018, hundreds of protesters, including employees of Goodwin Bet LLC, a local wagering operator, took to the streets of Yerevan. Their primary concern was that the governments restrictions would lead to significant job losses, affecting thousands of Armenians.
Critics at the time argued that the country had already made considerable progress in regulating the sector, including raising licence taxes and increasing the minimum gambling age from 18 to 21. They contended that additional restrictions could do more harm than good, particularly in terms of employment.
Another standoff in the making?
Some experts predict that the latest changes could cause another rift between policymakers and stakeholders.
Andres Gladisevs, a renowned iGaming expert and founder of MyCasino Setup, has expressed concerns about the proposed tax changes. Speaking with SiGMA News, he suggested that such moves could significantly impact businesses within Armenias gambling industry.
In my opinion, any critical changes in taxes usually lead to creative accounting, Gladisevs noted. Honestly speaking, if foreign companies are allowed to obtain licences, which I highly doubt, then nothing will change in iGaming. Andres said.
He further cautioned, But if only local companies are permitted to operate (through these legislations), then it will certainly affect the business. It could even lead to the closure of legal 바카라s, which in turn might fuel the growth of the black market.
History has shown that outright bans often drive gambling underground, leading to unregulated markets with even greater risks for vulnerable individuals. Instead, Armenia might need to adopt a more nuanced approach, such as enhanced monitoring, targeted interventions for problem gamblers, and stricter enforcement of existing laws.
Moreover, the rise of digital betting platforms suggests that international cooperation may be necessary. With online gambling operating beyond borders, addressing addiction and financial risks will require collaboration between governments, regulatory bodies, and industry players.
