Dec 22, 2024
Explore the essential regulatory framework and licensing requirements for operating online gambling, lottery, and betting platforms in Uzbekistan, effective January 1, 2025.
Uzbekistan has marked a significant shift in its regulatory landscape with the legalization of online gambling, lotteries, and bookmaking activities, effective January 1, 2025. This development opens new avenues for businesses interested in this evolving sector, provided they adhere to stringent regulatory requirements.
The New Regulatory Framework
The new framework is established by Resolution of the Cabinet of Ministers No. 814, setting clear guidelines for the organization and conduct of these activities. The primary regulatory and licensing authority overseeing this sector is the National Agency for Perspective Projects (NAPP).
When Does Uzbek Regulation Apply?
For businesses operating in this space, it's crucial to understand when Uzbek regulations apply. Uzbekistan is considered the place of gambling, thus triggering its regulations, based on several criteria. These typically include:
The citizenship or physical location of the gambler.
The IP address used by the gambler.
The use of Uzbek bank cards for transactions.
The intended audience of the game or betting service.
Businesses must carefully assess these factors to determine their compliance obligations under Uzbek law.
Key Licensing Requirements for Operators
To legally engage in organizing online gambling, lotteries, and bookmaking, a legal entity must be established within Uzbekistan and obtain a license from NAPP. Licenses are issued for a term of five years.
While specific financial thresholds for authorized and reserve funds are detailed in the official regulations, the core requirements for obtaining a license include:
Legal Entity Residency: The applicant must be a legal entity resident in Uzbekistan.
Local Server Hosting: The electronic platform used for gambling, lotteries, or betting must be hosted on servers physically located within the Republic of Uzbekistan.
Financial Stability: Operators are required to maintain specific amounts in their authorized fund and reserve fund, demonstrating sufficient financial backing and solvency to operate responsibly.
Implications for Businesses
The legalization and regulation of this sector in Uzbekistan present both opportunities and challenges. Businesses looking to enter this market must be prepared for a highly regulated environment that prioritizes consumer protection and financial integrity. Adherence to these strict licensing requirements and ongoing compliance with NAPP's oversight will be critical for success.