According to official data from the Ministry of Finance, there are 13 licensed and registered bookmakers in the country . The number of illegal operators operating in the shadows reaches 4,000 . They do not pay taxes and are not responsible to the state or the players. Now the parliament is strengthening legislation to regulate this business. Outdoor advertising, civil servants and the military have been banned from participating in gambling. Now a new body is going to be created to control the financial turnover of bookmakers. But experts say that the new changes will stifle legal players and lead to the growth of shadow bookmakers
 
. Is there a solution to the fight against illegal bookmakers? What can be done to make the gambling market open and profitable for society? The country's government began to control the gambling market in the 2000s. On January 12, 2007, the "Law on Gambling Business" was adopted. The first bookmakers also opened in Almaty and Astana in those years. But a big change happened in 2009. The state is trying to create a new Macau in Kazakhstan, moving casinos and slot machines to Kapchagai and Borovoye. After 12 years (in 2021), it is required that the cash desks of bookmakers (BCs) should also be moved to special zones. Experts say that these two "moves" have contributed to the growth of illegal bookmakers.

"Legal business was sent to the gambling zone in Kapchagai and Borovoye. At that time, all efforts were transferred to the online business. Not everyone goes to Kapchagai to bet. At that time, the deputies did not have a question of bringing it out of the shadows. They only set a goal of reducing the influence and impact of the gambling business on the population. We said that if everything moved online, it would be very difficult, it would be much more accessible to people. Illegal operators would increase. [Deputies - ed.] They did not believe it, they implemented the law. Illegal online players increased," says Galymzhan Duambekov, a partner in the Gambling Consulting Authority, a consulting company for the development of gambling . Previously, he was the head of the country's bookmakers' association.

Galymzhan Duambekov / Photo: Linkedin

According to the Ministry of Finance, which was contacted by Kursiv.Media, in 2025 there were 12 legally registered bookmakers (BCs) in the country. At the beginning of 2021, there were 38 BCs in the country, but in 2023 their number decreased to 16 (Ministry of Culture and Sports, 2023). Of these, 15 voluntarily surrendered their licenses, and five were closed by court decision. According to the Law on Gambling Business, each BC is registered in the state and is issued a license for a period of 10 years.

Last year, official gambling establishments paid 67.1 billion tenge in taxes to the budget. Even if we say that they contribute billions, the amount should be much more. According to the Financial Monitoring Agency, their turnover reaches a trillion tenge . But taxes are not paid on all of it, because most gambling establishments operate in the shadows. In 2023, the Ministry of Tourism and Sports blocked the websites of more than 4 thousand illegal online casinos and bookmakers. 

"When I was the head of the bookmakers' association, we also fought against illegal businesses. We used to send a list of illegal bookmaking sites to the Ministry of Sports and Tourism. In 2024, it was reported that between 4,000-6,000 [illegal - ed.] sites were blocked. Just think, 4,000 illegal businesses and 13 registered legal bookmakers, and those are only the ones that were found. One company creates several duplicate sites in a day. Who will have more influence?", says Galymzhan Duambekov.

The ministry also admits that the fight against illegal bookmakers is like going against the wind.

"The activities of online casinos and illegal bookmakers are one of the pressing issues. Online casinos are banned in Kazakhstan, and a license is required to carry out bookmaking activities. Unfortunately, there is no universal solution to this problem. Despite strict censorship on the Internet, online casinos are flourishing in many countries," said Miras Tolebayev, the then Vice Minister of Tourism and Sports, last year .

According to experts from the Gambling Consulting Authority, a consulting company for the development of gambling, the losses caused to the budget by shadow bookmakers are equal to the turnover of legal bookmakers. According to expert Galymzhan Duambekov, if in 2024 the treasury received 67 billion tenge in taxes, the same amount of funds will remain with illegal bookmakers, and perhaps even more.

How will the state control the market?

This year, the State Revenue Committee announced the introduction of a Unified Betting Accounting System (UBAS) to transparently monitor the financial turnover of bookmakers and totalizators  . The plan is to use this system to monitor all bets on the market, increase tax revenues, and combat shadow players. In theory, it is an effective and necessary system. However, some aspects are not fully taken into account .

For example , the state intends to take full control over the betting and payment process. Bookmakers must submit daily information on players' bets, winnings, and taxes paid to the State Revenue Committee. And as the requirements for betting become stricter, some bookmakers will exit the market, giving way to illegal online platforms. This, in turn, is likely to lead to a decrease in taxes to the budget.

A similar system was established in Russia in 2015. In the same year, two centers for recording interactive betting transfers appeared. Companies such as Mobile Card and QIWI were approved as their operators.

Kazakhstan is also planning to operate with a similar model. Although the system is under state control, its work is coordinated by a private company, which means that all financial transactions between bookmakers and players, as well as personal information, will be completely in the hands of one company.

The State Revenue Committee (SRC) notes that no funds have been allocated from the budget for this system. On the contrary, it argues that the JV will allocate 4% of its income. This raises concerns about the emergence of another body similar to the controversial company that collected waste fees.  

It is not clear to whom this company will report and by what mechanism it will operate. In addition, the data of casinos and bookmakers is integrated into the system of the MCC and the Financial Monitoring Agency. So the question of why there is a need to create a second database that will repeat the same algorithm also worries market participants. It is not yet known when this center will start working.

"New initiatives are being taken by state bodies and deputies. I don't want to offend anyone or call them incompetent. But it's true that we haven't conducted a full study. What is the problem in the country, how other countries are fighting it - it hasn't been considered. Tightening tax policy also reduces business profits. Then it will be more profitable for businesses to operate in the shadows again. When operating illegally, profits increase and it fully covers the risks arising from illegal activities," says Galymzhan Duambekov.

According to him, current changes, such as the relocation to Kapchagai and Borovaya, will also have negative consequences in the future.

Improving tax administration, developing the market

"The most effective way to combat shadow bookmakers is to develop local operators who are licensed and legally operating. Because the gambling business has become part of the economy today," says George Mamulaishvili, head of the Bookmakers Association of Georgia .  According to him, the more the state restricts legal operators, the more illegal bookmakers will multiply.

George Mamulaishvili / Photo: Gambling Consulting Authority

Currently, the association headed by Mamuashvili has 74 legally registered operators , including both online casinos and bookmakers. In 2022, the country banned outdoor advertising by bookmakers and introduced an age limit. Young Georgians can only bet from the age of 25. The state tried to turn away the younger audience from gambling, but the situation turned out differently.

"They are the Internet generation. They can use online, crypto casinos via VPN, and place bets via online wallets. If we estimate, in the two years since the law was adopted, local operators have lost 20% of their users. Those who were banned from playing simply went to other shadow markets or foreign players. This means that a significant amount of money has also moved to that market," he said about the changes in the country. 

In 2019, Armenia introduced a law to limit the number of bookmakers. However, this did not seem to have a significant impact on reducing the gambling market in the country. After the law was adopted, offline bookmakers moved online. According to the Armenian Ministry of Finance, the total volume of bets in 2022 increased 6 times compared to 2018. Online casino turnover in Armenia exceeded the state budget deficit ($ 4.5 billion) and amounted to 25-30% of GDP .

"Currently, there is no specific method to limit the activities of illegal online operators. The most effective is to develop local, legally operating operators, as in Europe and America. When taxes are raised or other strict regulations are introduced, operators spend all their resources on adapting to that regime. While they are trying to remain in the previous situation, shadow operators directly capture the market," explains George Mamulaishvili.  

Legal operators are required to adhere to a "responsible gaming" policy. If there is a dispute regarding the payment of winnings, players can file a complaint. However, it is impossible to work with this algorithm with shadow players, who can leave bets unpaid at any time.

Support sports

The development of local operators directly affects the sports industry in the country. Currently, bookmakers that actively support sports in Kazakhstan include Olimpbet and 1xBet . The former has been a partner of the Kazakhstan Football Federation since 2020. It sponsors championships and buys broadcasts of foreign tournaments. In addition, it has also sponsored e-sports and racing. Another company, 1xBet, sponsors hockey clubs.

We sent a questionnaire to bookmakers to find out how much money they spend on Kazakhstani sports. But neither Olimpbet nor the Football Federation of Kazakhstan responded. However, in 2023, Majilis deputy Nartai Aralbayuly stated that betting companies sponsored Kazakhstani sports in the amount of $ 14 million , or 6.5 billion tenge .

Only a few of the 13 bookmakers registered in the country sponsor sports. The reason for this is that the Law on Gambling Business does not contain an article on mandatory support for sports.

Some countries have laws that oblige bookmakers to finance national sports. For example, in France, a law passed in 2010 requires gambling operators to transfer a certain percentage of their profits to national sports federations. These funds are used to develop and organize sports.
 In Russia, the financing of national sports by bookmakers is regulated by law. According to a federal law introduced in 2017, bookmakers are required to transfer 5% of their profits, or at least 15 million rubles per quarter, to all-Russian sports leagues and federations. 20% of these funds are directed to the development of children's and youth sports, and the remaining 80% to support professional sports.

"Supporting sports is important for bookmakers. They pay more attention to local sports clubs than to foreign tournaments and championships. They also need the active development of local sports. Bookmakers themselves are interested in the development of sports," says Galym Duambekov.

To clarify, as the local bookmaker market operates legally and develops, significant funds are also flowing into Kazakhstani sports in parallel.

After the president's statement at the national congress that "clubs should not rely on local budgets," it became known that seven clubs in the country will be deprived of state funding. Until now, billions of rubles have been allocated for football clubs such as "Astana", "Atyrau", "Ordabasy", "Turan", "Shakhter" and "Kaspiy". Now they must go private and strive to earn their own income.

"The federation needs a lot of money to hold a football championship and develop clubs. You can't collect it just from selling tickets. Who will they sell advertising to? Which company? We don't have a very developed culture of watching football matches. It takes a lot of money to hold a championship and advertise it. Only bookmakers can finance it," says Galymzhan Duambekov.

Fighting gambling addiction – from the state to bookmakers 

Of course, there is another side to the development of the gaming business. Gambling addiction, or  ludomania , is increasing. The World Health Organization has recognized it as a psychiatric diagnosis. There are no accurate statistics on people suffering from ludomania in Kazakhstan. Last year, ex-deputy Ruslan Berdenov stated that there are 350 thousand ludomania in the country. According to the Ministry of Health , there are 36 thousand gamblers in the country. However, officially, only 9 people have been diagnosed with "ludomania".

By 2026, the Kazakh authorities plan to halve the number of people addicted to gambling. To this end, free treatment and medical and social rehabilitation services for gambling addicts will be provided at the state expense. More than 80 million tenge will be allocated from the budget for this measure. 

But in international practice, all such measures are financed by bookmakers. In November 2024, the UK government introduced a mandatory payment for bookmakers . This payment will replace the previous voluntary contributions and is expected to bring in about €100 million a year . The funds will be used for research, prevention and treatment of gambling addiction. Five major UK bookmakers, including Bet365, Flutter, GVC, Sky Betting and Gaming and William Hill, have increased their contributions to combat gambling addiction to 1% of their annual revenue .

In France , gambling operators allocate a certain percentage of their betting income to combating gambling addiction. With these funds, organizations such as ADDICTEL and SOS Joueurs provide free psychological and legal assistance to addicted gamblers. Sweden also has a similar practice, where all licensed gambling operators are required to make mandatory contributions to a special fund. The state agency Spelinspektionen directs these funds to anti-gambling programs, research, and support for addicted gamblers.

Kazakhstan does not have a law requiring bookmakers to make mandatory contributions to combat gambling addiction, but the issue is being considered as part of new regulatory measures. If Kazakhstan follows international practice, bookmakers and casinos could be required to contribute to a special fund to combat gambling addiction and support addiction treatment programs.

Some bookmakers may be against investing in the fight against gambling addiction, considering it an additional expense . On the other hand, this system will increase market transparency and strengthen trust. If measures are implemented, the betting industry in Kazakhstan will be legal, transparent and safe . Players will turn to reliable, state-regulated operators rather than illegal, unregulated platforms.

The state and officials have often talked about tightening the gambling industry in recent years. Market participants are convinced that this will have serious consequences.

"Officials continue to utter populist words to score positive points with the electorate. But they do not take responsibility for the changes that will occur after those initiatives. A law that is difficult to administer only causes harm. If the law is difficult to enforce, it paves the way for the development of the shadow market," says George Mamulaishvili.

 
SO, WHAT IS THE SOLUTION WE PROPOSE? Promote the development of local gaming operators in the market. Experts say that one way to curb shady bookmakers is to develop legitimate players. As the market becomes more transparent, shady players will also begin to enter the market.
 

Improving tax administration. Now it is planned to increase corporate income tax and value added tax for bookmakers. But market participants say that the gambling business does not produce goods or services, and they do not understand the need to pay VAT. According to Galymzhan Duambekov , the tax burden paid by bookmakers is currently 43%. If the new Tax Code law is adopted, this burden may reach 63%. This will cause many players to go into the shadows again. In this regard, it is proposed to optimize tax administration, leaving the tax burden unchanged. This does not mean that the tax burden will decrease, but the tax system will become more open for players.

Add a clause in the legislation that obliges bookmakers to support national sports . This is a practice that exists in many countries around the world, which will increase funding for the sports industry in the country. State spending on sports may be reduced, since support from bookmakers will help this industry become self-financing. Bookmakers are also interested in the development and activity of the local sports market. In general, this would be beneficial for both parties.   

If bookmakers are legally obliged to finance sports, the state will view them as reliable partners. This will strengthen the status of operators in this industry and reduce the illegal betting market. Bookmakers can widely promote their brand by financing well-known sports clubs and events. This will allow them to attract new players and expand their audience. If bookmakers officially finance sports and demonstrate social responsibility, trust in their services will increase. As a result, players will begin to choose legal operators over shady platforms. Require bookmakers to contribute to the anti-gambling fund. For example, in the UK, bookmakers contribute 1% of their annual income. This system will ensure market transparency and increase trust. If the new rules are fully implemented, the betting industry in Kazakhstan will become legal, open and safe. Players will choose reliable operators regulated by the state rather than unregulated, shady platforms. This material was prepared in the Solutions Journalism Lab project in the genre of solutions journalism and represents the personal views of the speakers and the author .

 

 

 

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