Turkey Gambling Regulation

Turkey, officially known as the Republic of Turkey, is a country predominantly located in Western Asia, with a small part in Southeast Europe that connects it to the Balkans. Although gambling has been part of Turkey’s history for many years, it is now strictly regulated, leaving Turkish people with almost no legal forms of gambling.

Casinos were banned in Turkey toward the end of the 20th century. Meanwhile, in 2006, the country also outlawed non-state online gambling, further restricting the industry. While the government takes strict action to prevent illegal gambling, many Turks continue to look for ways to participate in activities that the law bans.

Just like land-based gambling, online gambling is also deemed illegal in Turkey. While some countries do not take any particular measures to regulate online gambling, Turkey is serious about restricting access to gambling websites. Moreover, through a law issued in 2013, the Turkish government began targeting individuals who participated in online gambling rather than casino operators.

Although the country has banned almost every form of gambling, it has authorized IDDAA, a state-owned betting business, to offer online gambling in Turkey. This monopoly, however, changed in 2017 when the rights to lotteries, horse-race betting, and sports betting were transferred to the private sector. To better understand Turkey’s legal framework, you may want to review the country’s gambling history and the legislation that regulates the industry.

History of Gambling in Turkey

As Turkey is a predominantly Muslim country, the laws and the political trends in the country are often affected by religion. This is one of the reasons why gambling has been a part of Turkey’s history for a relatively short period. Placing bets on horse races was legalized in 1984 and casinos were allowed to operate in 1990.

Although gambling had been legal for a few years, in 1996 several amendments imposed additional restrictions. Under the new rules, casinos could open for only eight hours a day, and winnings had to be paid only by checks. These changes were introduced in September, just a few months after the assassination of Ömer Lütfü Topal, known as the “casino king.” A few months later, in December 1996, a new law was passed banning casino operations.

The casino ban took effect on February 11, 1998, and casino operations remain illegal in Turkey to this day. Despite the sudden and harsh ban, numerous casinos continued to operate illegally. Before the ban, the industry was estimated to be worth $1 billion and employed about 20,000 people.

To further tighten regulation, Turkey banned online gambling in 2006. However, the new restrictions were not as effective as the government had anticipated. Their ineffectiveness was illustrated by a report showing that about a quarter of Betsson’s revenue for 2009 was generated thanks to bets placed from Turkey. Determined to stop Turks from gambling online, the Turkish Parliament introduced harsh penalties in 2013 for individuals caught gambling online. The government also imposed penalties on financial institutions that processed payments related to online gambling.

Gambling Regulation in Turkey

Gambling has been legal for only a few years in Turkey, and the country has already implemented strict laws that keep Turks from participating in most forms of gambling. Up until the 1990s, Turkey maintained a fairly liberal stance on wagering, with both casinos and horse race betting permitted. However, concerns about money laundering and other gambling-related issues prompted a ban on casinos, and the Turkish government has since amended the laws several times to tighten its grip on illegal gambling.

The definition of gambling is provided in the Criminal Code of Turkey, where gambling is described as games played for gain whose outcomes depend solely on chance. Such activities are deemed illegal and can lead to penalties.

Lottery and Games of Chance in Turkey

Horse Race Betting and Sports Betting

Land-Based Casinos

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Lottery and Games of Chance in Turkey

According to the Turkish Criminal Code and the Law Regarding Roulette, Pinball and Gaming Machines, all games of chance and betting are illegal in Turkey. However, games of chance and lotteries provided by state-authorized organizations are legal, with the Turkish Code of Obligations regulating the collection of profits generated through lotteries and other games of chance. The General Directorate of the National Lottery Administration used to organize and regulate chance-based games. While cash-prize games of chance can be offered only by this authority, individuals and institutions may organize non-cash prize games of chance provided they obtain approval from the General Directorate of the National Lottery Administration.

In 2017, the Turkey Wealth Fund was authorized to provide games of chance and horse racing bets. In 2019, this organization granted the Sisal-Şans Joint Venture Group the right to offer games of chance and horse race betting for 10 years.

Individuals and institutions must apply for permission to offer non-cash prize games of chance if the value of the prize exceeds TRY 154.06 (about €15). This threshold was set by the General Directorate of the National Lottery Administration for 2021, but it may change in the coming years.

Under the law, only individuals who are 18 or older may participate in games of chance or lotteries. If minors still take part in such sweepstakes, they are not entitled to receive the prize.

Winners must be selected in front of the general public, with a member of the Turkish Notary Public present during the drawing. The selection must follow the guidelines and principles outlined in the authorization granted by the General Directorate of the National Lottery Administration.

Under Decree on National Lottery No. 320, organizations and individuals that fail to comply with the rules for providing games of chance may face imprisonment from two months to two years and a fine ranging from TRY 100,000 to TRY 10 million (about €9,700 to €970,000). Such misconduct may also be considered a misleading or unfair commercial practice under the Consumer Protection Law, in which case an administrative fine of up to TRY 457,308 (about €45,000) may apply.

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Horse Race Betting and Sports Betting

Although some sources claim that horse race betting was legalized in 1984, the Jockey Club of Turkey has been organizing races and accepting wagers since 1953. Today, horse-race bets are among the few legal forms of gambling in Turkey, mainly because the law does not classify this activity as gambling. Horse races and related betting are conducted under the Law Regarding Horse Racing and regulated by the Horse Race Betting Regulation.

Sports betting has also been legalized in Turkey, albeit in a highly restrictive form. The activity is governed by the Law Regarding Soccer and Other Sports Betting and the Sports Betting Regulation. Turks may place online sports bets as long as the service is offered by state-authorized operators. The state-owned company IDDAA originally held this right and was supervised by the national gaming authorities. It was the only operator permitted to offer online sports betting to Turkish residents until 2017, when the right was transferred to the Şans Joint Venture Group.

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Land-Based Casinos

Land-based casinos were legalized in Turkey in 1990 and operated without restrictions for several years. After the assassination of Ömer Lütfü Topal, known as the “casino king,” a new set of restrictions was introduced in September 1996. These included limited operating hours and a requirement that casinos pay out winnings by check.

Amid accusations of money laundering and other concerns, a new law banning casinos was passed in December 1996. At the time, Turkey’s casino industry was estimated to be worth about $1 billion. Seventy-nine land-based casinos appealed the ban, but the Constitutional Court rejected the appeal on 21 January 1997. The ban finally took effect in February 1998.

Despite the outright ban on brick-and-mortar casino operations, the sector continued to operate illegally for years, with some venues presenting themselves as ‘foundations’ while still providing gambling to their members.

Online Gambling

While online gambling has flourished in many countries, Turkey implemented new measures and banned the activity in 2007. IDDAA, the state-owned betting company, was the sole exception and was allowed to offer online sports betting.

After the rights to organize and distribute sports betting were transferred to the Sisal-Şans Joint Venture Group, the gaming companies Demirören and Scientific Games were allowed to legally offer games of chance and sports betting in Turkey until 2029. Currently, the only company permitted to operate online gambling services in the country is Demirören Group. Unfortunately, the company’s websites offer poor odds, limited sports coverage, and low-quality service. Interestingly, through certain legal loopholes, the company can also offer a limited selection of online casino games.

Even after the ban, many people still resort to placing wagers with offshore casinos. While other countries mainly penalize operators that illegally offer gambling services, Turkey was the first to target the individuals who participate in illegal online gambling. According to current law, individuals caught gambling online illegally may face imprisonment of 3 to 5 years and a fine ranging from TRY 5,000 to TRY 20,000. To further enforce the ban, Turkey also authorized the Banking Regulation and Supervision Agency in 2013 to prohibit local banks and credit card issuers from processing transactions to or from online casinos.

Despite the harsh regulations, players still look for ways to access foreign casino websites. Using a VPN has become a popular way for Turkish players to bet with offshore casinos. In addition, cryptocurrencies allow them to remain anonymous and avoid being tracked by Turkish regulators. It should be noted that this is still considered illegal gambling, and the Turkish government is constantly implementing new measures to restrict access to foreign gaming sites.

While offshore casino sites have been continually restricted in Turkey, Turkish internet service providers (ISPs) recently began blocking unlicensed sportsbooks and Bitcoin gambling websites. This further narrows the online gambling options available to Turkish players.

Closing Thoughts

Gambling is strictly regulated in Turkey, and most forms are illegal. Although land-based casinos operated legally for a few years in the ’90s, money-laundering concerns and other complaints led to their ban. Brick-and-mortar casinos are still illegal, despite several organizations attempting to exploit legal loopholes to continue offering casino games.

In 2007, Turkey also banned online gaming. The only exception is sports betting, which is offered through the operator authorized to provide both land-based and online betting. For quite a few years, lotteries, games of chance, and sports betting were organized by state-owned enterprises, but in 2017 the rights to operate games of chance and sports betting were transferred to private-sector companies.

Online gambling, outside the regulated sports betting operations, is illegal in Turkey. The country has taken extreme measures that target individual players who resort to offshore online gambling instead of simply penalizing foreign casino operators. Banking institutions were also required to block all gambling-related transactions, leaving online players with limited options for funding their offshore gambling endeavors. As a result, outside the few legal gambling activities, Turkish players have virtually no way to legally enjoy casino games or other forms of gambling.