14 Mar, 2025
Following weeks of deliberations, the National Assembly of Armenia has approved a package of legislative amendments to apply a new tax code on gambling activities.
Initiated from 1 July 2025, the new tax code will apply a 10% turnover tax on the gambling activities of casinos, online games, sports betting, lotteries and totalizers.
A further tax burden will be applied from 1 April 2025, as the licence fees of Armenian-licensed online gambling and sports betting businesses will double, with a commitment to “increase fees annually” until the government establishes a new authority to regulate Armenia’s gambling sector.
The radical overhaul of Armenia’s tax code on gambling was designed by MP Hayk Sargsyan of the Civil Contract Party, with a view to raising AMD 13bn (~ $34,24m) in state funds.
Long journey to tax settlements
In previous deliberations, the Ministry of Finance had opposed the tax increases, arguing that they could destabilise the industry and shift financial flows to unregulated markets. The Ministry had already made adjustments in 2024 to impose taxes on ‘large gambling wins‘ above AMD 5 million (~$11,900).
Minister Sargsyan pushed back against the Ministry’s opposition, questioning why it was reluctant to impose higher taxes when gambling turnover had increased by over 400% in the last decade, reaching AMD 6.3 trillion ($16,05 bn) in 2023.
Disagreements saw the legislative process was postponed for two months to allow further negotiations and adjustments. The final hearing on 6 March 2025 resulted in compromises, including scaling back the licence fee increases at the request of the Ministry of Finance.
The overhaul was approved on the condition that a new quota-based system for gambling licences is introduced based on the Ministry’s recommendations to ensure that taxation remains sustainable for business, while preventing market distortions. The tax overhaul carries the commitment to establish a Gaming Sector Monitor and a Gaming Operator Institute.
New Tax Code rings technical changes
According to Anastasiya Yautodzyeva, Head of Analytics at 4H Agency, the new tax code introduces significant changes to the payment structure for accepting player stakes:
If an online casino accepts bets up to AMD 100 billion (~US$ 250 million) or an online betting operator accepts bets up to AMD 50 billion (~US$ 125 million), they must now make an additional payment each time they reach this limit.
The previous fees were:
From April 2025, a multiplier factor of 2.0 will be applied, increasing the fees to:
The multiplier will continue to rise annually as follows:
By 2028, the payment threshold for online casinos could reach AMD 1.4 billion (~US$ 3.5 million). This increase will continue until the government establishes a gaming sector monitoring centre and introduces a gaming operator institute to regulate the market.
Reformists believe Tax increases can fix social disorders
The new tax code is part of a broader effort to tighten oversight of the gambling sector. Lawmakers argue that gambling has contributed to rising social issues, including a spike in suicides linked to gambling addiction. In 2024 alone, over AMD 811 billion (~US$ 2 billion) was deposited into online casino accounts.
MP Hayk Sargsyan highlighted that redirecting these funds into the Armenian economy could boost GDP by 10–15% and state revenues by 7.34%. He also proposed restricting access to online gambling for certain social groups and civil servants to mitigate social harm.
Armenia reckons with an uncertain future
However, 4H Agency has warned that the significant increase in licence fees and the introduction of a turnover tax could have negative consequences for the Armenian gambling market.
The stricter financial obligations could:
The industry’s reaction to the new tax code remains uncertain. While lawmakers emphasise the need for stricter regulation to protect society from gambling-related harm, the technical and financial burden on operators may lead to unintended consequences, such as the expansion of unregulated gambling.
