The Senate Approved the Law on Legalization of Bookmakers and Gambling in Uzbekistan

Key Provisions of the Law

On February 21, the Senate of Uzbekistan approved the law on the legalization of bookmaker activities and gambling. The document is now sent to the president for signing. The law will come into effect on January 1, 2025, and introduces a series of regulations in the gambling business sector.

Key provisions:

• Licenses for organizing gambling and bookmaker activities will be issued for a period of 5 years.
• The minimum authorized capital for operators will be 56.25 billion sums (over $4.5 million).
• Mechanisms to limit the participation of individuals with gambling addiction will be introduced.
• The use of illegal foreign gambling services will be prohibited.

Reasons for the Adoption of the Law

According to one of the senators, the development of digital technologies and electronic payments led to an increase in the number of users of online risk-based games. This resulted in the growth of illegal gambling businesses, which necessitated the introduction of legal regulation.

Regulation of Gambling

The following measures are introduced to control the sector:

1. Licensing of bookmakers, lottery organizers, and online games.
2. Creation of a list of citizens with gambling addiction (ludomania) and restriction of their participation in gambling activities.
3. Exemption of the National Agency for Prospective Projects (NAPP) from fees when filing lawsuits to prohibit individuals from participating in games and bets.

Additional Amendments

The law also introduces changes to the regulation of other economic sectors:

• The central securities depository, stock market, and insurance organizations will receive updated control mechanisms.
• Employees of enterprises will have preferential rights to purchase shares in case of a public offering of securities (ESOP).
• Companies with more than 50% state ownership will direct at least 30% of net profit to dividend payments for 7 years after the placement of shares on the stock market.
• A tax provision for non-residents working with cryptocurrencies in Uzbekistan will be introduced.

Conclusion

The adopted law aims to regulate the gambling business, protect citizens from addiction, and combat illegal operators. It also regulates the stock market and the insurance sector, improving the overall financial system of the country. It is expected that after being signed by the president, the law will come into effect on January 1, 2025.