Tert.am conducted a study related to the field of online winning games in the region, specifically looking at the markets of Georgia, the Islamic Republic of Iran, and Turkey and comparing them with the Armenian field.

Georgia

The last legislative changes related to the sector in Georgia took place in June 2024. Recent changes have enabled online gaming operators to accept bets from foreign users. In order to attract new online gaming operators to the Georgian market, the government has also decided to create more favorable tax conditions, which will have a positive effect on existing operators as well.

In a conversation with Tert.am, the head of the administration of the Georgian Gambling Association, Giorgi Mamulaishvili, noted that the aforementioned changes will also have a positive impact on budget revenues, new investments and, in general, the gambling market.

"In Georgia, from the age of 25, everyone is allowed to play, except for the cases when a person is under the care of the state and is not provided with a job by the state, that is, he receives an allowance," said our interlocutor.

Mamulaishvili noted that experience shows the following. the more illegal operators there are, the more minors are generally engaged in online gaming.

"Restrictions always have a negative impact on any business, especially legal ones. And gambling is legal in Georgia. New illegal websites have now been created that focus on circumventing the new bans. There are many examples in the world of how bans on online games have a negative impact on the market and the entire social background in general. About 15-18% of the total gambling market is the new illegal markets. It's unfortunate, of course. I often say that it is better to have a legal, controlled market than an illegal and uncontrolled one," he emphasized.

According to him, the supervision of the sector in Georgia is very good. "There are several supervisory bodies that directly receive information about the work of operators. The legislative base is very well adapted to the needs of business, state and society, and, except for some prohibitions, I would say that Georgia has one of the best legislations in the field of gaming business. Despite the bans, Georgia is still considered the leader in the gaming business in the region and among the post-Soviet countries," he noted.

Iran

The situation in Iran is different. Betting is strictly prohibited in the Islamic Republic of Iran. Lovers of gambling games spend their time on betting platforms operating outside Iran, but if found out, the players face up to 6 months in prison. Fahimeh Sayed of the University of Social Welfare and Rehabilitation Sciences in Tehran notes that according to recent studies, gambling is popular among 8-9 percent of Internet users in Iran, with 25 percent of players being women.

Fahime also said that there are people who accept bets illegally in their home or shop, but if found out, they also face jail time.

Turkey

In Turkey, the industry is highly regulated, and betting is mostly prohibited. According to Biligim Berge, an IT security specialist in Turkey, this is why there is quite a lot of black marketing in this country - illegal gambling sites. Moreover, even illegal events and large offline competitions and gatherings are held here. The expert notes that Turks often use the VPN switching service and, changing their address, freely access websites restricted by law.

Betting and gaming without a legal license is a crime in Turkey, and legal betting is only done on state-licensed sites, of which there are a few.

Armenia

Online winning games are considered a form of entertainment under our law.

Economist Armen Grigoryan, referring to the sector in a conversation with Tert.am, noted that there are two approaches to winning games:

 a) treat it like a business and b) assess its social implications.

"Restrictions on participation in Internet gaming should be targeted so that they do not burden the families of people who are addicted to gaming. Not that a citizen's restrictions should be defined by a legally binding judgment by the court, but it should not come to that. Now the state and the private sector are actively working towards correct regulation of the legislative field.

For example, on March 20 of this year, legislative changes were made in RA, according to which the financial reports of companies organizing games with winning must be subject to a mandatory audit," said the economist. In this regard, Tert.am also sent a written request to the SRC to find out how much tax the online totalizers paid during the first half of 2024.

It was reported from Pek that 18,122,274,151 drams have already been paid to the state budget in the first six months of 2024 by taxpayers engaged in the activities of organizing an online totalizer in RA.

Citing the experience of Georgia, where a person under care is prohibited from playing, Grigoryan noted that the access of state, community, power structures employees, pensioners, students to gambling halls and internet platforms should be prohibited in RA.

In summary, it can be said that many regional experts agree that the online gaming field should be regulated, but having a banned market brings several negative consequences for the state and society. First, illegal betting sites are activated, which are not monitored, therefore provide unreliable services, and also target minors and vulnerable groups. Secondly, these companies pay absolutely nothing to the state budget, therefore they not only pose a danger to society, but also cause great damage to the state in the form of uncollected taxes.

Source