Armenia Tightens Online Gambling Controls Ahead of 2024

Armenia is set to strengthen its gambling regulations for online users by imposing new restrictions on specific groups deemed 'at-risk' and establishing stricter betting limits. The National Assembly of Armenia, the country's parliament, approved these regulations in a second and final reading of a law that will take effect on January 1, 2024. This decision follows the recent approval of a regulatory framework for gaming operators by the lawmakers. The goal of these measures is to safeguard citizens from gambling addiction, according to reports from Armenia’s Arka News Agency. Over the past eight years, the online gambling market has surged 35 times in size. It is estimated that Armenians spent around $20 billion on online betting platforms between 2017 and 2025. Despite the industry’s growth, tax revenue from online gambling only constitutes about 1% of the total budget revenues. The new law stipulates that operators and government entities must block access to online casinos for citizens receiving government subsidies, which include mortgage assistance, educational fee support, and agricultural loans. Pensioners relying solely on their pensions will also face similar restrictions. Additional blocks will apply to those involved in bankruptcy proceedings and individuals with “high debt burdens,” defined as anyone with loan payments exceeding 40% of their annual income. Remaining residents will have to adhere to new limits on online betting, restricting their gambling expenses to 20% of their annual income. Furthermore, all online gambling platforms in Armenia, regardless of their origin, must implement and visibly display auto-blocking, kill-switch buttons that allow users to restrict their access immediately if they recognize they have a gambling addiction. This mechanism will not only restrict access to that particular platform but also to all other licensed platforms. According to lawmaker Hayk Sargsyan, pressing this button results in a five-year prohibition on online gambling, with automatic extensions for five more years unless the user applies for reinstatement five days prior to the expiration of the initial block. Armenia has regulated land-based casinos since 2004, and in 2013, the government designated four official gambling zones for casino operations. Last year, a 10% turnover tax was enacted for both online and land-based casino operators, as well as for lotteries and sports betting platforms. In related developments in Russia, lawmakers recently approved measures to expedite blocking online casino websites.