Kyrgyzstan raises the stakes with tougher gambling laws

Lea Hogg September 6, 2024

Kyrgyzstan has tightened its grip on the gambling industry, unveiling a series of stringent regulations designed to reshape how casinos and betting offices operate, according to . The new measures, signed into law by Akylbek Zhaparov, Head of the Cabinet of Ministers, mark a significant shift in the country’s gambling landscape, aiming to ensure greater oversight and control in a sector that has often stirred controversy. The decree, titled “Gambling Activities in Kyrgyzstan,” brings forward strict new rules, primarily focused on transparency, security, and limiting the scope of A key provision mandates the installation of video cameras at critical points within casinos, such as cash and currency exchange desks, as well as registration areas. These cameras are required to record all transactions and activities in real-time, with footage preserved for a minimum of one month and potentially up to three months. The government’s emphasis on constant surveillance reflects a growing global trend toward enhanced regulatory scrutiny in gambling sectors. The decree also limits the physical footprint of gambling establishments, specifying that slot machines can only be installed within designated casinos, and all gaming areas must be no less than 200 square meters in size. This limitation aims to prevent the proliferation of small, uncontrolled gambling dens, which have been a concern in several emerging markets. Similarly, bookmakers and betting offices can now only operate under a specific licence and must be located within a casino. This requirement effectively narrows the scope of standalone betting operations, further centralising gambling activities within larger, more regulated venues. Kyrgyzstan’s new regulations signal the government’s determination to balance economic opportunity with social responsibility. While the reintroduction of casinos is seen as a potential boon for tourism and foreign investment, these new rules are clearly designed to curb the industry’s excesses and limit its impact on local communities. It remains to be seen how these reforms will play out in practice, but one thing is clear: the gambling landscape in Kyrgyzstan is being reshaped with a firm hand.

Online platforms outpace Krygyzstan’s traditional betting

In 2022, Kyrgyzstan made a significant policy reversal by reintroducing legal gambling after a decade-long ban that had been in place since 2012. The government allowed the reopening of casinos, but with strict regulations. These casinos were designated exclusively for foreign nationals, aimed at promoting tourism and foreign investment, while still protecting local citizens from the potential social harms associated with gambling.

The legalization primarily targeted brick-and-mortar establishments, with casinos only allowed in certain zones. This move was part of a broader strategy to boost the economy while maintaining control over the industry. Online gambling, or iGaming, also began to see more attention, as the government sought to regulate this growing sector.

The online sports betting market in Kyrgyzstan has been growing rapidly due to shifting customer preferences and the rising popularity of online platforms. Kyrgyzstan’s strong sports culture has driven more people to engage in online betting because of its convenience. Traditional betting shops are increasingly competing with online operators, which offer a broader variety of sports and betting options, including both international and local competitions. This dual approach—allowing gambling while seeking to protect local citizens from its potential harms—mirrors strategies employed in other regions, like Southeast Asia, where “tourism zones” have been used to mitigate the social risks of legalised gambling.

The country’s young, tech-savvy population is a key driver of this trend, as many people have access to smartphones and the internet, making online platforms more appealing. Additionally, Kyrgyzstan’s legal framework for online sports betting used to be relatively lenient and this created a favourable environment for operators to enter the market and offer services without heavy restrictions. Macroeconomic factors, such as the country’s steady economic growth and increasing disposable income, have also contributed to the market’s expansion. With more people able to afford recreational activities like sports betting and the growing penetration of mobile technology.