Armenian Government Shuts Down Country’s Largest Casino Amid Rising Political Tensions

The Armenian government has ordered the shutdown of the Shangri La Casino, the largest in the country, amid escalating tensions between the ruling party and opposition groups. The Ministry of Economy annulled the casino's operating license this week, citing irregularities found during a site inspection conducted in March 2026. Inspectors identified a number of financial discrepancies, including claims that the financial declarations from Onira Club, the casino's operator, did not align with the actual readings from the casino's slot machine meters. Economy Minister Gevorg Papoyan criticized Onira Club's financial data as distorted and falsified. According to Papoyan, the casino has two months to challenge the decision, but it must cease operations immediately to safeguard public interests. Shangri La, located near Yerevan, initially received its license on January 1, 2014, although it was temporarily stripped of its permit in 2020 over unpaid operating fees, a decision later reversed. The casino’s owner, Gagik Tsarukyan, is a businessman and opposition political leader, heading the Prosperous Armenia Party. Tsarukyan has been in conflict with the government in recent weeks, particularly following Prime Minister Nikol Pashinyan's election victory, during which Pashinyan targeted Tsarukyan directly, expressing intentions to nationalize Ararat Cement, the tycoon's largest enterprise. The government has intensified tax audits and investigations amid a broader crackdown. Pashinyan’s administration claims to have evidence of espionage activities involving former lawmakers for the Russian government. Tsarukyan is also facing potential prison time for vote-buying allegations, although he was recently acquitted of similar charges from the 2017 elections. Following the election, Tsarukyan lost his immunity as a candidate, increasing the likelihood of arrest. This incident reflects a trend of stricter government control over both land-based and online gambling operations. Last year, lawmakers implemented a 10% turnover tax on all gambling establishments, including casinos, lotteries, and sportsbooks. A recent law mandates that online operators incorporate a kill switch feature, allowing users to self-exclude from all betting platforms for five years. Foreign operators failing to meet this requirement could face bans, while certain categories of individuals, including welfare recipients and those involved in bankruptcy hearings, are permanently barred from online gambling.