The decree, named "Gambling Activities in Kyrgyzstan," proposes strict new rules mainly focusing on transparency, safety, and limiting the scope of gambling activities. Key provisions specify critical points within casinos, such as cash and currency exchange points and registration areas, to install cameras. These cameras are required to record all transactions and activities in real-time and must continuously preserve the recordings for at least one month, up to a maximum of one month. The government's emphasis on continuous monitoring reflects the global trend of increased regulation in the gambling industry.
The decree also limits the physical size of gambling venues, stipulating that slot machines can only be installed within designated casinos, and all gaming areas must be no less than 200 square meters. This restriction aims to prevent the proliferation of small, uncontrolled gambling venues, which has become a problem in some emerging markets. Similarly, gambling companies and betting offices can now only operate with a specific license and must be located inside casinos. This requirement effectively narrows the scope of independent betting operations, further centralizing gambling activities in larger, more regulated venues.
Kyrgyzstan's new regulations indicate the government's determination to seek a balance between economic opportunities and social responsibility. While the reintroduction of casinos is seen as a potential boon for boosting tourism and foreign investment, these new rules are clearly aimed at curbing the excessive development of the industry and reducing its impact on local communities. The actual effects of these reforms remain to be seen, but it is clear that Kyrgyzstan's gambling industry is making strides in decisively advancing tourism.
Online platforms surpass traditional investment markets in Kyrgyzstan
In 2022, Kyrgyzstan reintroduced gambling casinos through a significant policy reversal, after a decade-long ban implemented in 2012. The government allowed casinos to reopen but with strict regulations. These casinos are only open to foreign nationals, aimed at promoting the tourism industry and foreign investment while protecting against potential social harms brought by national tourism.
The legalization focuses primarily on major physical casinos, which are limited to specific areas. This move is part of a broader strategy to drive rapid economic growth while maintaining control over the industry. iGaming is also gradually gaining attention, attempting to regulate this growing sector.
Due to shifting customer preferences and the explosion of online platforms, Kyrgyzstan's online sports betting market has grown rapidly. The country's strong sports culture has driven more people to participate in online betting, as triggered by its budget bill. Traditional betting shops are facing competition from online operators, offering a broader range of sports and betting options, including international and local events. Kyrgyzstan has adopted a dual approach—allowing gambling while seeking to protect its citizens from potential harms—mirroring practices in regions like Southeast Asia, where "tourist zones" are used to mitigate the social risks of legalized gambling.
The country's young, tech-savvy population is a key driver of this trend, with many able to use smartphones and the internet, making online platforms more attractive. Additionally, Kyrgyzstan's legal framework for online sports betting is relatively relaxed, creating a favorable environment for operators to enter the market and provide services without excessive restrictions.
Macro-economic factors, such as the country's stable economic growth and increasing disposable income among residents, have also begun to expand the market. As more people can afford entertainment activities like sports betting, and with the widespread adoption of mobile technology, the market has rapidly developed.
