Uzbekistan has marked a significant shift in its regulatory landscape with the legalisation 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.
01The New Regulatory Framework
The new framework is established by Resolution of the Cabinet of Ministers No. 814, setting clear guidelines for the organisation and conduct of these activities. The primary regulatory and licensing authority overseeing this sector is the National Agency for Perspective Projects (NAPP).
02When Does Uzbek Regulation Apply?
For businesses operating in this space, it is crucial to understand when Uzbek regulations apply. Uzbekistan is considered the place of gambling, thus triggering its regulations, based on several criteria:
- 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.
03Key Licensing Requirements for Operators
To legally engage in organising online gambling, lotteries, and bookmaking, a legal entity must be established within Uzbekistan and obtain a licence from NAPP. Licences are issued for a term of five years. The core requirements include:
- Legal Entity Residency: the applicant must be a legal entity resident in Uzbekistan
- Local Server Hosting: the electronic platform must be hosted on servers physically located within Uzbekistan
- Financial Stability: operators are required to maintain specific amounts in their authorised fund and reserve fund, demonstrating sufficient financial backing
04Implications for Businesses
The legalisation and regulation of this sector present both opportunities and challenges. Businesses entering this market must be prepared for a highly regulated environment that prioritises consumer protection and financial integrity.
Adherence to these strict licensing requirements and ongoing compliance with NAPP's oversight will be critical for success. Companies must factor in local entity establishment, server infrastructure within Uzbekistan, and adequate capitalisation when planning market entry in this sector.