Kazakhstan Gambling Regulations

Kazakhstan, officially known as the Republic of Kazakhstan, is a country located in Central Asia. It is the largest landlocked country in the world and the ninth largest country overall. While the predominant religion in the country is Islam, Kazakhstan allows freedom of religion, so its laws are not based on religious beliefs.

A clear example of how Kazakhstan differs from many other Muslim-majority countries is its regulation of gambling. In 2007, Kazakhstan legalized gambling, allowing some forms but imposing strict regulations on the industry.

Land-based gambling in Kazakhstan is available through numerous brick-and-mortar casinos situated in two designated areas of the country. Games such as blackjack, roulette, and poker are readily available at these facilities, giving players a traditional casino experience. Unfortunately, online gambling remains illegal under the country’s laws, and there are no signs that the legislature will change them anytime soon.

History of Gambling in Kazakhstan

Kazakhstan was ruled by nomadic tribes until the 13th century, when it became part of the Mongolian Empire led by Genghis Khan. During the mid-19th century, the territory was conquered by the Russian Empire and later became one of the republics of the Soviet Union after World War I.

Gambling has been part of Kazakhstan’s history since it was under Russian rule. The first decree that allowed the organization of lotteries was signed in 1698 by Tsar Peter I. Later, when Kazakhstan was part of the Soviet Union, lotteries were conducted by the Ministry of Finance of the Soviet republics. Gambling activities have been licensed by the Ministry of Finance of the Republic of Kazakhstan since 1999.

Kazakhstan was the last country of the former Soviet Union to declare its independence after the collapse of the USSR in 1991. After gaining independence, gambling became an unregulated industry, and Kazakhstan did not introduce gambling legislation until 2007. The new law, however, imposed severe restrictions on the sector, allowing brick-and-mortar casino operations only in two specific regions.

Today, the restriction on casino operations is still in force because no amendments have introduced a more liberal framework. Online gambling is another unregulated area, leading to many cases of illegal play among Kazakhstani players.

Gambling Regulations in Kazakhstan

Gambling became a regulated industry in Kazakhstan after President Nursultan Nazarbayev signed Act No. 219 on the gambling business on January 12, 2007. This law still governs gambling in Kazakhstan and imposes strict restrictions on the industry. Under the Act, gambling is legal only in two areas designated exclusively for such activities: Kapchagay and Schuchinsk.

The 2007 Act also declared that casino licenses issued before April 1, 2007, had expired. Before the new law took effect, approximately 130 brick-and-mortar casinos operated in the country. Because of the new restrictions, the number of active casinos dropped sharply. Some facilities located outside the designated zones went underground, others were converted into restaurants or clubs, and many simply closed.

Under the current law, operators who wish to run land-based casinos in Kazakhstan must obtain a license from the local regulatory body. Licenses are valid for 10 years. The Act also sets minimum game requirements: each casino must provide at least 20 table games and 50 slot machines. The legal gambling age in Kazakhstan is 21.

Land-Based Casinos in Kazakhstan

Other Forms of Legal Gambling in Kazakhstan

Online Gambling in Kazakhstan

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Land-Based Casinos in Kazakhstan

Prior to the enactment of the Act on gambling businesses, land-based casinos operated throughout Kazakhstan without being regulated by any specific law. When the Act passed in 2007, many of these venues were forced to close because gambling was permitted only in two regions, Kapchagay and Schuchinsk. Kapchagay lies about 80 km from Almaty, and Schuchinsk is roughly 230 km from the capital, Astana.

It is no coincidence that these locations were chosen as exclusive gambling zones. High-roller patrons who wagered large sums at these casinos played a role in that decision. Consequently, the brick-and-mortar casinos still operating are inaccessible to most Kazakh players.

The brick-and-mortar casino facilities in Kazakhstan operate 24/7, allowing visitors to enjoy a variety of casino games. Players can try roulette, blackjack, poker, baccarat, and numerous slot machines. Most casinos are owned by foreign investors. Because the two designated areas are close to major cities, the venues are usually packed with gambling enthusiasts.

So far, there have been no serious attempts to amend the current gambling legislation. Land-based gambling therefore remains legal only in the two regions mentioned above. Unlike other countries with shifting gambling zones, Kazakhstan keeps its designated areas unchanged, which supports long-term investment in the casino sector.

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Other Forms of Legal Gambling in Kazakhstan

Under the Act on gambling businesses, sports betting and lottery games are also legal in Kazakhstan. The legislation states that bookmakers and totalizators may set up their offices only in non-residential premises. This definition excludes the non-residential areas of industrial facilities, storage spaces, housing accommodations, and municipal premises.

Lottery games are extremely popular among Kazakhstani players. Historically, lotteries were highly profitable for almost anyone who bought a ticket. That changed in 2016, when the government passed Law No. 495-V ZRK, which regulates lotteries.

Before that law came into force, some operators turned lottery machines into illegal slot devices. The 2016 legislation allows lottery operators to apply for a government license, but they may not offer any other form of gambling.

Betting shops are currently allowed to operate in various parts of the country, yet they face growing public backlash. Many citizens are concerned about the safety of their loved ones because betting outlets are widespread, and minors often ignore legal age restrictions.

Because of these concerns, a 2022 petition in Kazakhstan called for restrictions on betting shops. It proposed relocating such venues to the two designated gambling zones. Supporters also want betting shops outside those zones to close permanently. It remains to be seen whether the petition will lead to significant changes in the land-based sports betting sector.

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Online Gambling in Kazakhstan

Although land-based gambling is heavily restricted, it is regulated and legal in Kazakhstan. The same cannot be said for online gambling. The Act of 2007 established strict rules for land-based casinos and other brick-and-mortar gaming venues, but it did not clearly address online gambling. While the Act mentions the activity, loopholes allow Kazakh players to bet on offshore websites that are not licensed by local authorities.

According to current law, online gambling occurs when a facility uses software and hardware located within the Republic of Kazakhstan. By that definition, if an operator’s servers are abroad, players are not deemed to be engaging in illegal online gambling. Therefore, many Kazakh players choose to play at foreign virtual casinos that meet their gaming needs.

As noted earlier, land-based casinos primarily target high-rollers who prefer larger stakes. Recreational players who are unwilling to risk substantial sums have few legal options, which is why many Kazakh residents opt to play online and place more modest bets on their favorite casino games.

During the global pandemic, travel to the two designated gambling zones became difficult, further boosting the popularity of online gaming. Foreign websites remain readily accessible because the government does not block them. Consequently, citizens can easily access a wide range of interactive casinos, many of which offer Kazakh and Russian language support.

A petition launched in 2022 seeks to limit betting shops to the two gambling regions and calls for tighter regulation of online gambling, including blocking access to foreign sites. Supporters argue that such measures would significantly reduce gambling-related issues in the country.

Gambling Regulator and Gaming Licenses in Kazakhstan

To offer gaming and betting services in Kazakhstan, operators must obtain a relevant license from the local regulatory body. The authority that handles the licensing process for land-based gaming and betting facilities is the country’s Ministry of Culture and Sport.

Operators can also apply for a license electronically. Several types of information must be provided by operators applying online. These include:

• Operators must provide an electronic copy of the documents proving payment of the license fee.
• Operators must submit data on the gambling equipment they will use, along with documents proving ownership of that equipment.
• Samples and nominations that serve as legitimation signs must be available in both Kazakh and Russian.
• Operators must provide an electronic copy of a document in Kazakh and Russian that outlines the rules of the gambling facility to be established and the type of gambling services it will offer.
• Operators are required to submit an electronic copy of their contract with a banking institution operating in Kazakhstan. The contract must specify the company’s contribution at the rate determined by the state budget for the respective fiscal year.
• A copy of the documents proving ownership of the gambling equipment operated by the company.
• The electronic application form must be certified with the service receiver’s electronic signature.

Gambling Taxes in Kazakhstan

While players in Kazakhstan are not required to pay taxes on winnings generated through legal gambling, casino operators must pay a gambling tax. Under the Tax Code, operators that provide gambling through gaming tables, slot machines, totalizator cash registers, electronic totalizator cash registers, land-based bookmaker cash registers, or electronic bookmaker registers are subject to taxation.

The respective taxes are paid on a quarterly basis and differ according to the type of gambling activities conducted by the operator. According to the Tax Code, the applicable tax rates on gambling are as follows:

• 1,660x the monthly calculation index per single month for a gaming table
• 60x the monthly calculation index per single month for a slot machine
• 300x the monthly calculation index per single month for a land-based totalizator cash register
• 4,000x the monthly calculation index per single month for an electronic totalizator cash register
• 300x the monthly calculation index per single month for a land-based bookmaker cash register
• 3,000x the monthly calculation index per single month for an electronic bookmaker cash register

Closing Thoughts

Gambling became a regulated industry in Kazakhstan in 2007 with the enactment of Act No. 219. It allowed licensed operators to offer casino games to residents of the country, provided the casino facilities are located in either of the two designated gambling areas in Kazakhstan: Kapchagay and Schuchinsk. Outside these areas, casino operations are illegal.

While land-based gambling has been regulated since 2007, online gambling remains something of a gray area. Although there is a definition of illegal online gambling, legal loopholes allow Kazakh players to use foreign gaming websites. Because the government is not restricting access to unlicensed virtual casinos, unregulated online gambling is widespread among players in the country.

Although legislators have discussed amending the current framework, any potential reforms are expected to impose even more restrictions. Unfortunately, there are no indications that Kazakhstan will legalize online gambling in the near future.