Gaming Law 2024 Comparisons

Kazakhstan has seen substantial growth and modernisation of its gambling sector in recent years. The government has been making significant strides towards reforming and updating gambling laws, aiming to align the sector with international standards while also ensuring a well-regulated and socially responsible attitude. The country’s gambling industry is currently divided into specific zones, with casinos and other gambling facilities only allowed in certain designated areas. This zoning approach has helped regulate physical gambling operations and concentrate industry activity in controlled regions.

Recent trends indicate a heightened focus on consumer protection and responsible gambling (RG). There have been discussions about introducing tighter regulations, such as more robust age verification requirements, gambling addiction awareness campaigns and restrictions on advertising.

Additionally, Kazakhstan is looking into the potential for implementing advanced technological solutions, including blockchain and cryptocurrency, to ensure transparency and better tracking of financial transactions in the gambling industry. However, cryptocurrency use in gambling remains largely unregulated, and the government has yet to clarify its stance on this issue.

The only permitted forms of online gambling are lotteries, sports betting and totalisators.

However, online sports betting/totalisator operators are required to have at least one sports betting/totalisator shop to operate these online platforms. Only live sports event betting is permitted; wagers are not allowed for virtual (random number generator (RNG)-based) events.

The current online gambling landscape is Kazakhstan can be characterised as follows:

• online casinos (online slots, poker, etc) are prohibited;
• online sports betting and totalisators are permitted, with an obligatory offline presence;
• online lotteries (including bingo, keno and other lottery-type games) are under state monopoly;
• social gaming is vastly unregulated; and
• fantasy sport is prohibited.

The land-based gambling industry is regionalised. Land-based gambling establishments may be located in one of two regions: Qonayev in the Almaty region and the Burabay district of the Akmola region.

The following land-based facilities/offerings are permitted:

• sports betting shops;
• totalisators;
• land-based casinos;
• slot-machines (in both separate halls and land-based casinos); and
• land-based lotteries.

Note that lotteries are not considered a form of “general” gambling under the definitions of the Gambling Law; they are regulated by separate legislation and subject to state monopoly. Accordingly, this guide does not provide details of land-based lotteries in Kazakhstan.

A key piece of legislation regulating the gambling industry in Kazakhstan is the Law on Gambling (No 219) dated 12 January 2007, hereinafter referred to as the “Gambling Law”.

The following laws, among others, also form part of Kazakh gambling legislation:

• Law No 495-V KRZ (the Law On Lotteries and Lottery Service);
• Law No 191-IV (the Law On Counteraction of Legitimization (Laundering) of Incomes Received by Illegal Means, and Financing of Terrorism);
• Law No 94-V (the Law On Personal Data and Its Protection);
• Law No 508 (the Advertising Law); and
• the Law On Taxes and Other Mandatory Payments to the Budget (Tax Code).

The Gambling Law defines gambling as “a risk-based agreement on winnings entered into by the participants of gambling among themselves or with a gambling operator”.

The Gambling Law does not provide a direct definition of “land-based gambling”.

Instead, there is a set of definitions outlining the status of gambling operators within different regulated areas (as outlined in 2.2 Land-Based).

The regulated areas are as follows:

• sports betting shops, in which the operator of a gambling business offers bets to participants and takes the opposite side in such bets;
• totalisators, the operators of which provide intermediary services when a bet is made between participants;
• land-based casinos – ie, gambling establishments with gambling tables and slot-machines; and
• slot-machine halls – ie, gambling establishments in which only slot-machines are used for gambling.

The Gambling Law does not provide a direct definition of online gambling. Instead, the Gambling Law provides several definitions that determine the scope of online gambling, namely:

• internet casino – an internet resource that provides the capability to operate and conduct gambling activities in real time via the internet and/or electronic money, with provisions for payouts;
• electronic casino – an establishment that uses hardware/software and/or an internet resource to operate and conduct gambling activities in real time, via the internet and/or electronic money, with provisions for payouts; and
• electronic cash registers for sports betting and totalisators – information systems through which bets are accepted (recorded) and winnings are paid using information and communication networks.

Gambling-related offenses are set out in the Criminal Code as well as the Code of Administrative Offences.

The Criminal Code provides, inter alia, for the following offences:

• the illegal opening of a gambling establishment;
• the provision of premises for illegal gambling business;
• the organisation and conduct of gambling outside two special zones established by the Gambling Law; and
• unlicensed gambling operations.

The Code of Administrative Offences provides, inter alia, for the following key offences:

• failure to comply with the requirements regarding the location of gambling establishments or gambling equipment;
• failure to comply with the requirements regarding gambling operations, accepting bets and payment of winnings outside of the regulated locations, as determined by the Gambling Law;
• payment of winnings in a form other than money;
• failure of the gambling operator to comply with requirements regarding obligatory funds (mandatory reserves, as specified in 4.7 Application Requirements); and
• failure to comply with the requirements regarding the number of slot-machines in a casino.

Possible penalties for gambling-related offences include correctional labour or community service, imprisonment, confiscation of properties, fines and licence revocation. Liability for violation of the law can be imposed on both the offending company and the individual responsible.

In cases of criminal liability of the gambling operator, key penalties may include:

• fines amounting to ten to 20 times the income received from the unlawful actions;
• correctional labour or community service of up to 1,200 hours;
• imprisonment for up to seven years; and
• confiscation of the property of the gambling operator.

In cases of administrative liability, key penalties may include:

• fines of up to EUR7,000;
• suspension or revocation of the gambling licence; and
• confiscation of the income of the gambling operator obtained as a result of the unlawful actions.

Please note that under Kazakhstan’s legislation, all prices are set according to the minimum calculation index, which is adjusted annually. For clarity, the current KZT/EUR exchange rate is used to display the amounts in this chapter (as of November 2024, EUR1 = KZT526.3).

Most recent amendments to the Gambling Law took effect on 9 September 2024. These changes aim to reduce the harm associated with gambling and establish consistent rules for casinos, sports betting operations and related businesses. Amendments were also introduced to the Criminal Code, establishing penalties for electronic and online casinos operators.

Other significant changes include:

• the creation of a new regulatory body – the Committee for Gambling and Lottery Regulation (the “Regulator”);
• the introduction of the so-called unified accounting system, where all licensed operators are required to integrate with this state-run system; and
• a new list of illegal foreign operators, which will be managed by the Regulator and published on its website.

The Regulator (forming part of the Ministry of Tourism and Sports) acts as the key gambling regulatory authority in Kazakhstan.

Kazakhstan employs a prescriptive and reactive approach to gambling regulation, emphasising strict compliance and enforcement measures.

Recently, the government modified the system of regulatory oversight, establishing a new regulator with broad discretionary powers for independent prescriptive and enforcement decision-making. With amendments to the Gambling Law effective as of 9 September 2024, the updated regulations focus on harm reduction and creating uniform rules across gambling forms.

In its crackdown on illegal gambling, the Regulator has pursued over 100 legal cases in 2024 alone, identified over 11,000 websites with signs of unlawful activities and blocked thousands of these sites in collaboration with other state agencies, including the Financial Monitoring Agency and the Prosecutor General’s Office.

There have been no significant recent changes related to licensing and the regulatory framework.

The following types of licences are available in Kazakhstan:

• sports betting shop licences;
• totalisator licences;
• land-based casino licences; and
• slot-machine hall licences.

Online gambling activity is not covered by a separate licence, instead being an addition to the land-based licence. Also, supplier licences (business-to-business (B2B) provider licences) are not provided under the Gambling Law.

The restrictions on licences are as follows:

• sports betting shop licence – no restrictions;
• totalisator licence – no restrictions;
• land-based casino licence – there are restrictions on the location of the establishment, where a casino can only be located in at least a three-star hotel in two special locations, as specified in 5.1 Premises Licensing; and

• slot-machine hall licence – there are restrictions on the location of the establishment, where a slot-machine hall can only be located in an at least three-star hotel in two special locations, as specified in 5.1 Premises Licensing.

All licences are issued for a period of ten years.

Licences can also be renewed at least 90 calendar days before expiry. In this case, the effective date of the new licence will be the day following the expiration date of the current licence.

The general application requirements are broadly the same for all operators and suppliers, namely:

• each applicant must own or legally control a building (or part thereof) compliant with sanitary and fire safety standards;
• each applicant must own the equipment necessary for organising and conducting relevant gambling activity;
• contracts must be in place with licensed security service providers authorised under Kazakhstan law;
• each applicant must develop operational rules for their games in both Kazakh and Russian; and
• each applicant must provide proof of payment of the application licence fee.

Key differences in application requirements depending on the licence type are as follows:

• sports betting applicants shall maintain a mandatory reserve of EUR278,000 in a bank on the approved list of the Kazakh authorities;
• totalisator applicants must maintain a mandatory reserve in the amount of EUR70,000; and
• land-based casino and slot-machine hall applicants must develop tokens in Kazakh and Russian, as well as maintain a mandatory reserve in the amount of EUR417,000.

The timescale for licence applications is as follows:

• licence issuance – up to ten business days from the date of application submission; and
• licence renewal – up to three business days.

If any required documents are incomplete or outdated, the Regulator will provide a written notice of refusal within two business days. However, the Regulator may request additional documents if needed, which could impact the processing time.

Depending on the type of licence, the application fee differs as follows:

• sports betting shop licence – EUR4,450;
• totalisator license – EUR4,450;
• land-based casino licence – EUR26,750; and
• slot-machine hall licence – EUR26,750.

Application fees are payable upon applying for a licence.

Since online sports betting/totalisator licences are not considered as fully separate licences, their cost is integrated into the general application costs of the relevant land-based licence.

Along with application licence fees, the Kazakh Tax Code also provides for the following annual licence fees (in the Tax Code, such fees are defined as “fees for the usage of a license”):

• sports betting shop licence – EUR4,450;
• totalisator licence – EUR4,450;
• land-based casino licence – EUR26,750; and
• slot-machine hall licence – EUR26,750.

Since online sports betting/totalisator licences are not considered as fully separate licences, their cost is integrated into the general operation costs of the relevant land-based licence.

The Gambling Law sets forth two types of requirements applicable to the location of gambling premises (buildings):

• general requirements applicable to all gambling operators; and
• specific locational requirements that are applicable to operators of either casinos or slot-machine halls.

General Requirements

All gambling venues should be located in non-residential premises and adhere to several additional restrictions. It is forbidden to locate gambling venues in:

• non-residential premises in residential buildings;
• buildings of industrial enterprises;
• communal and warehouse facilities;
• religious buildings (structures);
• buildings of state bodies and institutions;
• educational organisations;
• healthcare buildings;
• cultural buildings;
• airports;
• train stations; and
• all types of urban and suburban public transport stations.

Specific Locational Requirements

The Gambling Law also establishes an additional requirement for the location of casinos and slot-machine halls. Specifically, casinos and slot-machine halls can be located only within specially designated zones, namely:

• Qonayev in the Almaty region; and
• the Burabay district of the Akmola region.

Moreover, casino and slot-machine halls can be located only in at least three-star hotels.

There are no requirements related to the licensing of the premises themselves.

As well as the changes mentioned in 3.7 Recent or Forthcoming Changes, there has been an important development related to land-based gambling: the inclusion of Alatau, in addition to the two existing gaming areas (Konaev in the Almaty region and Burabay in the Akmola region), as a region that can accommodate casinos (though only from 2050).

The head of government signed a document outlining the development of the region and the establishment of a “green zone” via several stages: the initial phase is to start in 2030, the intermediate stage is to start in 2040 and the completion date is 2050.

Kazakh gambling legislation regulates almost all types of online gambling. The only online gambling permitted is sports betting/totalisators in relation to live events; online casinos, slots and other types of betting (eg, betting on virtual events) are expressly prohibited.

It should also be noted that online sports betting and totalisators are not considered separately and cannot be conducted by operators without licensed land-based premises.

As mentioned in 4.4 Types of Licences, Kazakh gambling legislation does not provide for any type of B2B licences or permissions.

Recent amendments to the legislation in Kazakhstan directly affected the regulation of advertising. Please refer to 9.4 Restrictions on Advertising and 9.6 Recent or Forthcoming Changes for further details.

Gambling advertising restrictions have been tightened recently, with new rules banning bloggers and influencers from promoting even licensed betting companies. Violators face fines starting at EUR380.

The Gambling Law does not specifically regulate the use of white-label providers.

However, in practice, it is possible to operate white-label models in Kazakhstan, and operators can manage multiple domains under this approach.

Kazakhstan’s legislation provides several mechanisms for the blocking of websites of illegal gambling operators. The Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan, the authority responsible for telecommunication services, carries out such blocking activities based on orders from the prosecution authorities.

Before 2020, website blocking was based on court decisions. Now, various authorities can initiate blocking actions. For example, last year, the Agency for Financial Monitoring and the Ministry of Culture and Information together prevented the large-scale organisation of card games on TikTok by setting up an AI system to promptly block broadcasts of illegal content.

Currently, efforts are also underway to counter the organisation of illegal lotteries on other social networks, including through financial blocking measures. Foreign organisers of these games cannot accept money directly from Kazakhstani players, so they use local payment organisations and banks instead.

Recent amendments have introduced rules for identifying foreign gambling operators whose activities are considered illegal in the Republic of Kazakhstan. These operators will be added to an official list maintained by the Regulator, which will be published on its website along with any resulting enforcement actions.

Under the Gambling Law, the following RG requirements are applicable to licensed gambling operators:

• gambling operators are required to display a warning about the risks and harms associated with participating in gambling and/or sports betting in a prominent place within gambling establishments, as well as on their websites, and the warning must include the potential negative consequences of participation in such activities;
• gambling operators shall not allow individuals under the age of 21 to participate in gambling, nor permit Kazakh citizens aged 21 or older who are restricted from gambling to participate;
• Information about individuals on the restricted list is confidential and cannot be shared without the consent of the individual or their legal representative, except on specific legal grounds; and
• cashless and cash payments, including electronic money transfers between participants and gambling operators, must be made through a unified accounting system, which must reject payments to or from individuals on the restricted list.

There are two main tools for promoting RG in Kazakhstan.

Self-or Mandatory Exclusion

A citizen of the Republic of Kazakhstan who has reached the age of 21 may voluntarily restrict their participation in gambling – for a period of six months to ten years – by submitting an application to the Regulator to be included on the list of individuals restricted from participating in gambling.

Close relatives and family members have the right, based on a court decision that has entered into legal force, to limit the capacity to gamble of a citizen by submitting an application to the Regulator for the inclusion of such citizen on the list of persons restricted from participating in gambling.

An individual included on the list of persons restricted from participating in gambling and/or sports betting can be removed from the list by the Regulator based on a court decision that has entered into legal force to revoke the limitation on the citizen’s capacity to gamble/bet.

Mandatory Display of RG Information

There is a requirement for operators to display warnings about the dangers of excessive gambling, and to provide information on self-exclusion procedures and contact details for psychological support services for gamblers and their families.

Recent changes introduced restrictive and incentivising measures aimed at reducing gambling addiction among the population. The list of individuals prohibited from participating in gambling and sports betting has been expanded. It now includes individuals listed in the Unified Debtors Register (an electronic database containing information on debtors under enforcement proceedings). Participation in gambling and sports betting is also restricted for individuals holding senior government positions and individuals authorised to perform state functions – and those associated with them – through the introduction of an anti-corruption restriction.

The key AML legislation applicable to gambling operators is the Law On Preventing and Countering the Legalization (Laundering) of the Proceeds of Crime, and the Financing of Terrorism (the “AML Law”).

According to the AML Law, a transaction involving money or other assets is subject to financial monitoring if the transaction amount is equal to or exceeds EUR1,900 and is related to receiving winnings, in cash, from sports betting, gambling in gambling establishments or lotteries, including in electronic form.

Additionally, gambling operators should implement a system of internal controls, which should include:

• policies aimed at minimisation of the risks associated with the legalisation of the proceeds of crime, the financing of terrorist activities and the financing of the proliferation of weapons of mass destruction;
• policies regarding identification, documenting suspicious financial transactions, financial transactions subject to special controls, and timely submission of information and documents to the financial regulator;
• policies ensuring the preparation and transmission of reports of financial transactions subject to special controls and suspicious financial transactions carried out by employees;
• identification and assessment of the risks associated with AML requirements, including the risk of working with a given client;
• monitoring and control of the risks associated with AML requirements; and
• limitation (reduction) of the risks associated with AML requirements.

The latest updates in the approach to AML came in 2022, when the Self-Regulatory Organization of Bookmakers of the Republic of Kazakhstan (the “SRO of Bookmakers of the Republic of Kazakhstan”), the Association of Bookmakers of Kazakhstan and the Agency of the Republic of Kazakhstan for Financial Monitoring signed a joint memorandum on co-operation for combating money laundering and terrorist financing. This was a reaction to legislative changes made in April 2022, where the government decided to ban the use of credit cards for gambling-related payments.

Apart from the foregoing, there has been no major progress in strengthening legislative regulation or making any decisions in relation to AML in recent years. However, the Regulator’s work on this front is expected to intensify in the near future, since the recent limitations on the advertising of gambling and the maintenance of self-exclusion rules could lead to an increase in the offshore market, and therefore to an increase in the risk of money laundering.

The Ministry of Information and Social Development of Kazakhstan, and its regional units, are responsible for the regulation of matters related to the advertising of gambling activities.

According to the Advertising Law, advertising is information disseminated and/or placed – in any form and by any means, and for an undefined audience – with the aim of generating or maintaining interest in a natural or legal person, goods, trade marks, works or services, and promoting sales.

Kazakh regulations regarding advertising are quite restrictive in nature (the same approach is used by other post-Soviet countries). For a detailed description of such restrictions, please see 9.4 Restrictions on Advertising.

It should be noted that there is no separate licensing or regulatory framework concerning advertising in the gambling sector; the overall rules are general, with little indication of which are applicable to operators.

The following restrictions apply to gambling advertising in Kazakhstan:

• advertising of online casinos and unlicensed gambling is prohibited;
• lottery advertising is prohibited, except for advertisements placed by the lottery operator or agents within the framework of a commission agreement with the operator;
• gambling advertising is prohibited, except advertising located at licensed premises, within sports facilities or on athletes’ uniforms; and
• gambling advertising may only include the name, trade mark elements, location, website (if available), date of issuance, validity period and licence number of the licensed operator.

Violation of the advertising regulations is penalised by a fine ranging from EUR400 to EUR3,100.

The Regulator can also block the websites of illegal unlicensed or offshore gambling operators.

As mentioned earlier, recent amendments to the Gambling Law also established restrictions on the advertising of sports betting shops and totalisators. Under this new regulation, all outdoor (visual) advertising of sports betting shops and totalisators – as well as advertising on vehicles, in mass media, and in cinema, video, and reference services – is now prohibited.

However, there are exceptions, which include:

• outdoor advertising at the location of a sports betting shop or totalisator;
• advertising within sports facilities and on athletes’ uniform;
• advertising in registered sports-themed media; and
• advertising during live broadcasts of international sports competitions by domestic TV channels.

These measures are aimed at reducing gambling addiction among the population and regulating the activities of the gambling industry in the country.

Kazakhstan Gambling Law does not provide for any specific requirements with regard to acquisitions and changes of control of gambling companies.

Concerning changes in corporate control triggers, please refer to 10.1 Disclosure Requirements.

Concerning requirements for passive investors in acquisitions or changes in control, please refer to 10.1 Disclosure Requirements.

The latest legislation does not contain any policies regarding acquisitions and changes of control.

According to the gambling legislation, the Regulator is obliged to:

• monitor the compliance of gambling operators, unlicensed online casinos and foreign sports betting operators with gambling and AML laws, where the Regulator has the authority to block broadcasts or take legal action as necessary;

• issue fines to, and suspend or revoke the licences of, operators who fail to comply with regulations;
• maintain a list of individuals restricted from participating in gambling to enforce exclusion and RG measures;
• collect and analyse reports from gambling operators to identify and address compliance issues; and
• impose penalties for violations of the gambling regulations, etc.

The Regulator routinely inspects licensed gambling operators to ensure they meet the licensing requirements and comply with gambling regulations. If operators breach these requirements or regulations, they may face administrative liability, which can lead to fines, property confiscation, or suspension or revocation of their gambling licence.

Additionally, representatives of offshore gambling operators conducting activities within Kazakhstan without a proper licence may face criminal liability, since unlicensed operation is prohibited. The Regulator’s approach is notably strict, as demonstrated by numerous court cases in which both licensed and offshore operators have been held accountable in various ways.

As an example of enforcement in the gambling sector, by early 2024, the Ministry of Internal Affairs and the National Security Committee, under the co-ordination of the Prosecutor General’s Office, had dismantled a major illegal online casino network disguised as lotto clubs. Kazakh police conducted 570 searches of lottery premises across the country, seizing more than EUR1 million as well as various forms of evidence, including documents and gambling equipment. These operations led to the shutdown of 326 lotteries nationwide. Servers broadcasting online casino games from abroad were identified and blocked, while administrators were detained.

Prior to the foregoing, in 2023, the Ministry of Internal Affairs and the National Security Committee shut down underground casinos operating under the guise of “wellness centres” and hotel complexes in the Khorgos International Border Cooperation Center. Five individuals, including two foreigners, were detained. Seized items included slot-machines, casino tables and cash.

Since the beginning of 2024, the Regulator has filed 103 lawsuits. Investigations are ongoing, but verdicts have already been delivered to 48 suspects. In total, more than 11,000 websites with signs of illegal activity have been identified. Of these websites, 6,639 deemed potentially illegal have been blocked, including 227 by the State Technical Service, while 1,961 are currently inaccessible and 1,353 were found to have violated the law.

These extensive enforcement actions demonstrate the authorities’ strong commitment to overseeing and cracking down on illegal industries, with strict measures and severe penalties.

The calculation of financial penalties depends on several factors, such as the severity of the offense and the number of participants involved. For example, the strictness of enforcement may increase if the offense was committed by a group of persons, resulted in large financial gain or was committed by an individual abusing their official position.

As financial penalties result from administrative or criminal liability, their enforcement methods are consistent with the sanctions described in 3.6 Penalties for Unlawful Gambling and 11.2 Sanctions.

In 2024, Kazakhstan established a new regulatory body, the Regulator, which operates under the Ministry of Tourism and Sports.

Moreover, under recent updates to enforcement within the Kazakh gambling sector, bloggers and influencers are now prohibited from advertising or promoting bookmakers, with violations being subject to fines starting at EUR380. The list of individuals barred from participating in gambling has also expanded and now includes individuals holding public positions of responsibility, such as civil servants, military personnel, employees of special and law enforcement agencies, and heads of budget organisations. These individuals face dismissal if they fail to comply with the restrictions.

Gambling tax is calculated on the basis of taxable items and is payable per month:

• sports betting shops and totalisators are taxed per cash register (EUR2,100);
• land-based casinos are taxed based per gaming table (EUR11,550);
• slot-machine halls are taxed per slot-machine (EUR420);
• online totalisators are taxed per electronic cash register (EUR27,800); and
• online sports betting is taxed per electronic cash register (EUR20,900).

As for general taxation, all businesses in Kazakhstan are subject to a 20% income tax.

There have been no recent changes to gambling taxation.

Kazakh gambling legislation does not regulate personal licences.

See 13.1 Types of Authorisations and Licences.

See 13.1 Types of Authorisations and Licences.

See 13.1 Types of Authorisations and Licences.

See 13.1 Types of Authorisations and Licences.

See 13.1 Types of Authorisations and Licences.