Armenia Doubles Online Gambling Taxes

Armenia is tightening its grip on the gambling industry.

The National Assembly has passed legislation doubling taxes for online casinos and bookmakers, significantly increasing the financial burden on operators.

Lawmakers cite economic benefits and growing social concerns, including links between gambling addiction and rising suicide rates, as key reasons.

While some push for an outright online gambling ban, officials warn that excessive restrictions could drive players toward unregulated foreign websites.

Armenia Increases Online Gambling Taxes Amid Calls for Stricter Regulation

Key Aspects of Armenia’s New Gambling Tax Law

• Online casino and bookmaker taxes will double starting April 1, 2024.
• The law establishes a new gaming sector monitoring center and regulator by year-end.
• Some lawmakers advocate for a full ban on online gambling, but technical challenges remain.

Armenia Doubles Online Gambling Taxes to Boost State Revenue

Armenia’s National Assembly has approved a major tax increase for online casinos and bookmakers, effectively doubling the current fees for operators.

The amendments to the Tax Code, introduced by MP Hayk Sargsyan, were adopted in full following the second reading. The new taxation rates take effect on April 1, 2024, imposing a significant financial burden on gambling companies operating in the country.

Economic Justification for the Tax Hike

During the parliamentary session, Sargsyan presented staggering statistics, revealing that in 2024 alone, over 811 billion drams (€1.9 billion) were deposited into online gambling accounts.

He argued that redirecting these funds into the economy could increase Armenia’s GDP by 10-15% and boost state revenues by 7.3%. The government expects the tax hike to generate substantial additional revenue to fund national projects.

However, critics within the industry warn that higher taxes could push operators to relocate or drive players toward illegal offshore sites.

Lawmakers Debate an Online Gambling Ban Amid Social Concerns

While the tax increase focuses on revenue generation, some lawmakers want to go further—pushing for an outright ban on online gambling.

Sargsyan expressed strong support for severe restrictions, citing growing social concerns, particularly gambling addiction and its link to suicide rates.

“More than half of the suicides in the army in 2024 were linked to gambling,” Sargsyan claimed, highlighting the need for tighter controls.

Challenges of Banning Online Gambling

Despite these concerns, Sargsyan admitted that Armenia lacks the technical capability to effectively block foreign gambling websites.

“I will do everything possible to give our state this technical ability. Once achieved, we will introduce stricter legislative amendments,” he added.

However, Deputy Chairman of the Economic Affairs Committee, Babken Tunyan, urged caution, warning that excessive restrictions could drive Armenian players to “dubious foreign websites” with little to no consumer protection.

Instead of outright prohibition, Tunyan emphasized that the new law aims to ensure fair taxation while keeping gambling within a regulated framework.

New Gambling Regulatory Body to be Established

As part of its regulatory overhaul, Armenia will launch a dedicated gambling monitoring center and introduce a formal gambling regulator by the end of 2024.

The new regulator will focus on:

• Implementing stricter controls on gambling operators.
• Restricting access to gambling for certain social groups and civil servants.
• Monitoring compliance with tax and licensing requirements.

These regulatory steps are intended to balance economic benefits with social responsibility and prevent the rise of problem gambling.

However, opposition lawmakers within the Armenia faction in parliament remain skeptical about the effectiveness of these measures, calling for faster and stricter intervention against gambling operators.

What’s Next for Armenia’s Gambling Industry?

• April 1, 2024: Online gambling operators will begin paying double taxes under the new law.
• Late 2024: Armenia’s new gambling regulator and monitoring system are expected to be fully operational.
• Future Legislation? The government may push for additional restrictions, including a potential full ban once technical solutions for blocking foreign gambling sites become available.

Armenia’s Gambling Industry Faces a New Era of Regulation

Armenia’s tax hike and regulatory overhaul mark a significant shift in the country’s gambling policy. While the government aims to boost state revenues and curb gambling-related harm, the new law may also push players toward unregulated markets.

As Armenia moves forward with stricter oversight, the industry will be watching closely to see if further restrictions—or even an outright ban—become a reality in the near future.