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Armenia Proposes New 10% Turnover Tax on Online Casinos

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Armenia Proposes New 10% Turnover Tax on Online Casinos

Armenia’s online casino market is booming—but will new taxes slow it down? Prime Minister Nikol Pashinyan has revived a proposal to impose a 10% turnover tax on online casino gaming revenues, citing massive industry growth and inadequate tax contributions. While bookmakers remain exempt, online casinos could face a significant tax hike starting April 1. With the industry generating trillions of drams annually, will the new tax ensure fair contributions or stifle growth?

Armenia Moves to Introduce 10% Turnover Tax on Online Casinos

Key Points:

  1. Armenia Proposes a 10% Turnover Tax on Online Casinos

    • The new tax would apply exclusively to online casino operators, excluding bookmakers.
    • It aims to increase tax revenue from a sector experiencing explosive growth.
  2. Government Cites Massive Revenue Growth in the Online Casino Sector

    • Turnover in online casinos jumped from 14bn drams in 2010 to 6.3 trillion drams (€15.3bn) in 2023.
    • Taxes and duties paid by the sector rose to just 33bn drams, prompting calls for a higher contribution.
  3. Armenia Recently Revised Gambling Tax Laws on Winnings

    • In 2023, Armenia reduced income tax on large wins (above €11,000) from 10% to 5%.
    • Smaller net winnings are now taxed at a fixed rate of 10%.

New Tax Proposal Targets Online Casinos as Industry Surges

The Armenian government is pushing forward with a proposal to introduce a 10% turnover tax on online casinos, citing rapid industry expansion and disproportionately low tax contributions.

Prime Minister Nikol Pashinyan’s administration has revived the tax plan, which was initially delayed but is now moving forward with urgency.

The bill, introduced by Hayk Sargsyan, a member of the ruling Civil Contract faction, aims to ensure that the booming online casino sector pays its fair share in taxes.

Turnover Growth Drives Push for Higher Taxation

According to Sargsyan, the online casino sector’s turnover skyrocketed from 14bn drams in 2010 to a staggering 6.3 trillion drams (€15.3bn) in 2023.

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Despite this explosive growth, the sector’s total tax payments only increased to 33bn drams, a figure the government deems insufficient.

Sargsyan stated that the bill will be fast-tracked, with lawmakers approving a special procedure to consider both readings within 24 hours.

“Given the unprecedented growth of online casino revenues, it is only fair that the industry makes a greater contribution to the state budget,” Sargsyan said.

The new tax would come into effect on April 1, 2025, pending final approval by the National Assembly.

How the New Tax Fits into Armenia’s Broader Gambling Reforms

Armenia has recently made significant changes to its gambling tax structure, particularly regarding player winnings.

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Changes to Tax on Winnings (2023 Amendments):

  • Large Winnings (€11,000+): Income tax was lowered from 10% to 5%.
  • Smaller Wins: Any net win below 5 million drams (€11,000) is taxed at 10%.
  • Goal: Simplify taxation for smaller-scale gamblers while ensuring larger winnings remain taxable.

While these reforms reduced player tax burdens, the new turnover tax ensures that operators contribute more to the national economy.

The latest move reflects the Armenian government’s ongoing efforts to balance industry growth with responsible taxation.

Will the New Tax Hinder Industry Growth?

Armenia’s online gambling sector has flourished, largely due to low regulatory barriers and competitive tax policies.

Industry experts warn that a 10% turnover tax could impact operator profitability, potentially leading to:

  • Higher costs for players, as operators adjust odds or reduce promotional offers.
  • A shift to offshore platforms, where tax burdens are lower.
  • Slower market expansion, as operators reconsider their investment strategies.

However, the government argues that the tax is necessary to maintain a sustainable gambling ecosystem and ensure that public funds benefit from industry growth.

Whether the tax strengthens state revenue or slows industry momentum remains to be seen.

Conclusion: A Strategic Move or a Threat to Industry Growth?

Armenia’s 10% turnover tax on online casinos represents a major policy shift in the country’s approach to gambling taxation.

With billions flowing through the industry, the government seeks to capitalize on its growth while maintaining fairness in tax contributions.

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However, the impact on operators and market competitiveness remains uncertain.

Will the new tax create a more balanced gambling ecosystem, or will it drive operators to explore alternative jurisdictions?

With April 1 approaching, all eyes are on Armenia’s National Assembly as lawmakers prepare for the final vote.

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