Uzbekistan Steps into the Digital Era: Legalizing Online Betting

In a significant move towards modernization, Uzbekistan has embraced the digital age by legalizing gambling, online betting and lotteries. This landmark decision comes as a result of a presidential decree aimed at improving the regulation of these activities within the country.

The decree, titled “On measures to improve the regulation of the organization and conduct of lotteries and risk-based games,” marks a pivotal moment in Uzbekistan’s approach to gambling and gaming. Effective from January 1, 2025, the decree allows for the organization of risk-based games and bookmaking activities on the internet. Oversight and licensing for these activities will be managed by the Prospective Projects National Agency, ensuring compliance with regulatory standards.

One of the key provisions of the decree is the inclusion of residents and non-residents of Uzbekistan, who have reached the age of 18, as eligible participants in gambling, licensed lotteries, internet games, and bookmaking bets. This inclusive approach opens up new avenues for entertainment and engagement for individuals across the country.

Furthermore, the decree outlines specific taxation measures for the organizers of lotteries and online games. Legal entities involved in organizing these activities will be subject to a 4 percent tax rate on their total revenue, with exemptions for winnings paid out and stakes refunded. Additionally, individual incomes derived from licensed activities will be exempt from income tax, providing further incentives for participation.

In order to ensure compliance and prevent illicit activities, the decree mandates monitoring and control functions to be carried out by regulatory bodies. The Agency, in conjunction with the Department for Combating Economic Crimes under the Prosecutor General’s Office, will oversee efforts to combat money laundering, terrorism financing, and the proliferation of weapons of mass destruction within the industry.

Overall, the legalization of online gambling, betting and lotteries represents a significant step forward for Uzbekistan, signaling its readiness to embrace technological advancements and adapt to changing societal norms. By providing a regulated framework for these activities, the government aims to strike a balance between fostering economic growth, promoting responsible gaming practices, and safeguarding public interests. As Uzbekistan ventures into this new frontier, it is poised to capitalize on the opportunities presented by the digital economy while upholding principles of transparency, accountability, and consumer protection.