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Uzbekistan Sets the Stage for Legal Online Gambling and Lotteries with New Licensing Framework

Uzbekistan is gearing up to revolutionise its digital entertainment landscape with the approval of a stringent licensing framework for online gambling and lotteries. This landmark decision, sanctioned by the Cabinet of Ministers on 6 December, paves the way for the legalisation of online gaming activities commencing 1 January 2025. Overseen by the National Agency for Prospective Projects (NAPP), the new regulations are meticulously crafted to ensure operator reliability and robust player protection through rigorous financial and technological standards.

Rigorous Licensing Criteria for Online Operators

The newly minted regulations impose formidable financial and compliance requirements on aspiring online gambling and betting operators. To secure a five-year licence from NAPP, platforms must demonstrate an authorised capital of 56.25 billion soums (£4.4 million) and maintain a reserve fund of 28.125 billion soums.

Lottery operators, while facing slightly lower financial thresholds, are equally subjected to stringent compliance mandates. These measures are designed to filter out unreliable operators, ensuring that only financially stable and reputable entities can penetrate Uzbekistan’s burgeoning online gaming market.

In addition to financial prerequisites, all operators must utilise Uzbekistan’s national internet domain, ensuring that their digital activities remain within the country’s regulatory ambit.

Certification of casino gaming software is compulsory, adding an extra layer of scrutiny to prevent malpractices and ensure fair play. Comprehensive player verification processes are also mandated, safeguarding against underage gambling and enhancing overall player security.

By enforcing these stringent criteria, Uzbekistan aims to cultivate a trustworthy and secure online gaming environment that prioritises both operator integrity and player safety.

Comprehensive Player Protection and Regulatory Oversight

A cornerstone of the new regulatory framework is the establishment of a Unified State Register of Bets and Players. This sophisticated registry is designed to meticulously monitor and manage gambling activities, tracking player behaviour and betting patterns to detect any irregularities or fraudulent activities.

The regulations impose strict participation restrictions, prohibiting individuals under 18 and other specified categories from engaging in gambling activities. Additionally, betting on local events and youth sports is categorically banned, reflecting Uzbekistan’s unwavering commitment to promoting responsible gambling practices.

NAPP will wield significant authority in overseeing compliance, equipped with the power to levy hefty fines on operators that fail to adhere to the established guidelines. This regulatory oversight extends to foreign entities offering services to Uzbek residents, ensuring that international operators are held to the same high standards as their domestic counterparts.

By 1 January 2025, NAPP must finalise all regulatory documents and establish robust monitoring mechanisms, necessitating close collaboration with the Ministry of Internal Affairs, Central Bank, and Tax Committee.

This comprehensive approach ensures that the regulatory framework is both effective and enforceable, maintaining the integrity of Uzbekistan’s online gambling and lottery sectors.

Eliminating Physical Gambling Venues to Focus on Digital

In a strategic move to streamline regulatory efforts, the Uzbek government has prohibited the establishment of physical gambling venues such as casinos or slot machine halls, with the sole exception of locations selling lottery tickets. This prohibition underscores the country’s focus on digital transformation, concentrating resources and oversight on online platforms where the majority of gambling activities are anticipated to occur.

By eliminating physical venues, Uzbekistan aims to reduce the potential for illegal gambling operations and ensure that regulatory efforts are concentrated where they are most needed.

This decisive action aligns with broader public safety objectives, aiming to mitigate the social harms associated with physical gambling establishments. Problem gambling and related issues are more prevalent in environments where physical venues are present, making their prohibition a prudent measure.

The emphasis on online platforms allows for more precise regulation and monitoring, ensuring that operators comply with all legal and ethical standards. As Uzbekistan prepares to embrace this new era of digital gaming, it sets a commendable precedent for other nations seeking to regulate and safeguard their online gambling markets effectively.