Kazakhstan poised to explore gambling as a means of economic growth

(AsiaGameHub) –   After a nearly 20-year period of no significant changes, Kazakhstan is poised to alter its regulations concerning gambling.

Reports from within the country indicate that Kazakhstan is looking to stimulate its economy by expanding designated gambling zones amidst increasing global instability.

These new zones, primarily situated in areas geared towards tourism, will be established in four locations: Mangistau on the Caspian Sea coast; the Panfilov district and Lake Alakol in Zhetysu; the Talgar district in the Almaty region; and the Markakol area along with the Zaisan district in East Kazakhstan.

It is also understood that, in addition to various social responsibility measures, these new zones will be off-limits to domestic residents, as the government intends to continue protecting its citizens from the regulated gambling industry.

Alongside the expansion of gambling zones, there will be a significantly stricter approach to advertising, effectively amounting to a complete prohibition on gambling-related advertisements.

Furthermore, this expansion is occurring concurrently with intensified efforts to combat the black market. These efforts are largely targeting the country’s main payment providers to disrupt the flow of funds to unlicensed operators from Kazakh players.

The government has reportedly engaged directly with the nation’s primary mobile carriers (Tele2, Beeline, Kcell, Activ) to ensure that payments to unlicensed sites are blocked in real-time.

Various geoblocking strategies will also be implemented to further curb unlicensed operators that target residents within Kazakhstan.

While specific figures for the size of Kazakhstan’s black market are unavailable, it is believed to be substantial. This is suggested by the growth of the iGaming sector in the country and the relatively modest tax revenue generated from it when compared to its overall scale.

In several respects, Kazakhstan appears to be adopting an approach similar to that of neighboring Russia. Russia is also establishing a new gambling zone in the Altai Republic, a mountainous region, which is being promoted as a significant tourist attraction rather than a destination for local residents.

Russia has demonstrated the potential of gambling as a mechanism for economic growth and increased tax revenue.

President Putin has historically opposed gambling legislation, viewing the sector as detrimental to society. However, he has reluctantly acknowledged its effectiveness as an economic tool through the establishment of these zones.

One of Russia’s more recent gambling developments in Sochi has contributed a considerable amount to tax income from its gambling zones, reportedly generating around 765 million rubles (£7.3 million), according to media reports.