Armenia Targets Higher Gambling Revenue with New Tax Proposal

The Armenian government is pushing for stricter gambling taxation as the betting industry experiences unprecedented growth. A new proposal seeks to introduce a 10% turnover tax on gambling operators, adding to the existing taxes and duties.

With betting volumes skyrocketing by over 440 times since 2010, lawmakers argue that the current tax framework is insufficient. This tax increase aims to boost state revenue significantly while ensuring fair contributions from the booming gambling sector.

Armenia Moves to Introduce a 10% Gambling Turnover Tax Amid Betting Boom

Key Points of the New Gambling Tax Proposal

🔹 Gambling turnover has surged, while tax revenue growth has lagged behind.
🔹 The proposed 10% turnover tax could generate an additional 100bn AMD ($0.25bn) annually.
🔹 Armenia continues tightening gambling laws to ensure proper taxation and industry regulation.

The bill reflects a broader effort to regulate gambling profits, ensuring the state benefits from the industry’s rapid expansion.

A Closer Look at Armenia’s Proposed Gambling Tax Increase

Why Is Armenia Increasing Gambling Taxes?

During a Standing Committee on Economic Affairs meeting, Armenian MP Hayk Sargsyan introduced the proposal, highlighting the disproportionate growth in betting volume versus tax collection.

✔ Betting activity increased over 440 times between 2010 and 2023.
✔ Tax revenue from gambling grew only 26 times in the same period.
✔ Previous tax hikes and restrictions have not generated sufficient revenue.

Sargsyan emphasized that the government must act quickly to ensure gambling companies contribute fairly to the national budget. The additional 10% turnover tax is designed to bridge the gap between industry profits and state revenue collection.

How Will the New Gambling Tax Affect Operators?

If implemented, the 10% turnover tax will significantly impact gambling operators in Armenia, increasing their tax obligations beyond the existing income taxes and duties.

🔹 Increased operational costs for betting companies.
🔹 Potential adjustments in betting odds or player incentives to offset new taxes.
🔹 A more regulated and transparent gambling sector.

Despite the concerns from operators, the Armenian government argues that this measure is necessary to ensure that tax revenue keeps pace with industry growth.

Armenia’s Recent Gambling Taxation Reforms

Armenia has already introduced new tax measures for gambling winnings. In June 2023, Parliament approved a law imposing a 5% income tax on “large wins”. This move was part of a broader effort to regulate gambling profits and prevent tax evasion.

Additionally, Armenia has been implementing stricter controls on gambling advertising and player protections, aligning its policies with European standards.

What’s Next for Gambling Regulation in Armenia?

As Armenia’s gambling sector continues to expand, lawmakers remain focused on ensuring fair taxation and responsible gambling practices. The new tax proposal could generate an extra 100bn AMD ($0.25bn) annually, strengthening the national budget.

For gambling operators, adapting to these new tax obligations will be critical. Compliance with new financial and regulatory measures will be essential for sustained market operations.

📢 Stay updated on Armenia’s gambling regulations and tax reforms to ensure compliance with the evolving legal landscape!