President of Uzbekistan Shavkat Mirziyoyev signed a decree on measures to improve the regulation of the organization and conduct of lotteries and games based on risk on April 19. This information was reported by the press service of the National Agency for Project Management (NAPM) and the Ministry of Justice.
According to the document, starting from January 1, 2025, the organization of games based on risk on the internet and bookmaking activities will be allowed based on NAPM licenses.
The NAPM is designated as the authorized state body for regulating and licensing activities related to organizing games on the internet, bookmaking activities, as well as lottery organization. It will establish the procedures for their licensing.
State bodies and organizations, local authorities, as well as charitable foundations and organizations, will be able to conduct lotteries exclusively through lottery organizers on a contractual basis.
In bookmaking, online games, and lotteries organized based on the issued license, only residents and non-residents of Uzbekistan over 18 years old will be allowed to participate.
Starting from January 1, 2025, for a period of 5 years, legal entities organizing online games, lotteries, and engaging in bookmaking activities will become taxpayers of a turnover tax at a rate of 4%, levied on the aggregate income minus all winnings paid out and returned stakes.
Incomes of individuals derived from winnings in online games, bookmaking, and lotteries conducted based on NAPM licenses are exempt from personal income tax.
The NAPM and the Department for Combating Economic Crimes at the General Prosecutor's Office will monitor and control the activities of lottery organizers, online games, and bookmaking activities to ensure compliance with legislation on combating the legalization of proceeds from criminal activities, terrorism financing, and the financing of the proliferation of weapons of mass destruction.
Justification
The decree notes that the existing bans on creating national providers for conducting online games based on risk, as well as the lack of legal regulation and the sustained interest of citizens in this area, "lead to their active use of foreign and illegal services."
In a statement from the NAPM press service, it is mentioned that the decree was developed based on a "careful study of advanced foreign experience for the implementation of modern technologies in the regulation of activities related to organizing games based on risk and lotteries." The document was prepared by studying the experiences of Singapore, Hungary, South Korea, Georgia, and several other countries.
The agency highlights that these measures are aimed at protecting the rights and interests of citizens, preventing and combating gambling addiction, as well as preventing the outflow of funds from the country.
Specifically, the measures outlined in the decree include the introduction of mechanisms for organizing activities of national providers for organizing games based on risk and monitoring their activities, preventing individuals with excessive gambling addiction and specific categories of citizens from participating in games.
According to the NAPM, the implementation of the decree will create a reliable basis for the legal regulation of online games based on risk, bookmaking activities, and lotteries, introduce effective mechanisms to protect the rights and interests of citizens participating in legally organized games, combat gambling addiction, and provide additional sources of revenue for the country's state budget, which can be directed towards various social purposes.
It is worth noting that President Shavkat Mirziyoyev signed a decree in December 2019 providing for the legalization of bookmakers from 2021, however, in April 2022, the head of state revoked this decision. In April 2023, he instructed to return to the development of the regulatory framework for bookmaking activities.
