Recently, the Uzbekistan Cabinet passed a resolution: from January 1, 2025, online gambling, lotteries, and betting activities will be allowed within the country. Prior to this, in April, the President of Uzbekistan had already issued a decree allowing these activities.
This decision by Uzbekistan undoubtedly provides more destination choices for gamblers! So today, let's talk about Uzbekistan and see what its development potential looks like.
Basic Information about Uzbekistan
1. Population
Uzbekistan has a total population of about 34 million people (2023 data), making it the most populous country in Central Asia. The population growth rate is relatively high, with about 60% of the population under the age of 30.
2. Language
The official language of Uzbekistan is Uzbek, which is the language of administration, education, and law in the country. In daily life, many Uzbeks also use Russian, especially in urban and commercial areas. Due to historical connections with Russia, Russian plays an important role in Uzbekistan's economic and cultural exchanges.
3. Currency
The legal currency of Uzbekistan is the Uzbekistani Som (UZS), with 1 USD ≈ 13,000 Som.
4. Social Media Users
The use of social media in Uzbekistan is gradually increasing, especially among young people and urban residents. According to the latest statistics (2023), there are about 17 million social media users in Uzbekistan. Common platforms include Facebook, Instagram, Telegram, YouTube, etc.
5. Internet Users
The internet coverage in Uzbekistan is improving year by year, currently about 25 million internet users (2023 data), which is about 73% of the total population. Mobile internet users dominate the internet user base, while broadband coverage is mainly in large cities, with limited broadband coverage in remote areas.
Why Open Online Gambling
1. Limited industrial structure, seeking ways for economic development
Cotton, textiles, natural gas and oil, metals, and minerals are some of Uzbekistan's well-known industries. However, these industries have relatively low capacity and lack support from technology and emerging industries, limiting national economic development. Therefore, in recent years, along with social reforms, Uzbekistan has gradually opened up multiple industries, especially in the entertainment and gambling sectors.
2. National policy of economic diversification
Since independence, the Uzbek government has been committed to promoting economic diversification, especially through reforms to attract foreign investment and promote the development of the tourism and modern service industries. The country also has a relatively large proportion of young people, aiming to improve the standard of living and gradually modernize society, which is also a consistent policy of the government.
3. Better to regulate than to block, legalization allows better supervision and combats illegal activities
In fact, the gambling industry in Uzbekistan is not a new industry. Like other countries around the world, there are more or less underground gambling activities. However, it is better to regulate than to block, which also better reflects the government's attention to the modern entertainment industry. By standardizing management and guiding investment, more economic benefits can be created, while also increasing employment opportunities.
History of Gambling Development in Uzbekistan
As mentioned earlier, the gambling industry in Uzbekistan is not a new industry, but it has been under strict regulation in the past. During the Soviet era, Uzbekistan was part of the Soviet gambling market, with some legal casinos and gambling venues.
However, following the dissolution of the Soviet Union, there was a legal vacuum and policy lag, and Uzbekistan's gambling industry faced many restrictions. In the 1990s, Uzbekistan adopted a more conservative policy, limiting the operation of the gambling industry.
Entering the 21st century, as the economy gradually opened up, Uzbekistan began to recognize the potential of the gambling industry. In the early 2000s, the government began to allow some high-end entertainment venues and hotels to establish casinos, but these activities were usually concentrated in specific areas and were strictly controlled.
Despite this, traditional gambling methods still could not fully meet the needs of domestic and foreign tourists.
In recent years, the Uzbek government has gradually realized that the gambling industry can not only generate tax revenue for the country but also promote related industries (such as tourism, hotel industry, etc.). Therefore, while gradually relaxing gambling policies, Uzbekistan is also strengthening gambling regulation to ensure the healthy development of the industry.
Background and Significance of Legalizing Online Gambling
With the development of internet technology, online gambling has become the mainstream form of the global gambling market. Uzbekistan has chosen to follow this trend to promote economic modernization and innovation. Legalizing online gambling will undoubtedly bring many benefits, including promoting economic growth and tax revenue, enhancing international competitiveness, protecting consumers and promoting industry standards, and promoting the development of the tourism industry.
The key question is, can Uzbekistan become the next Philippines?
Here are a few key factors:
1. Market Size and Demand
The gambling industry in the Philippines is already very mature, especially in online gambling and entertainment. The Philippine gambling market includes Philippine Offshore Gaming Operators (POGO), a large industry that attracts a lot of foreign investment, and the government gains substantial fiscal revenue through gambling taxes and license fees.
Although Uzbekistan has a large population base (about 35 million people) and consumer capacity is gradually improving with economic development, the domestic gambling industry is relatively small. Legalizing online gambling will increase the market size and competitiveness, but it will take some time to cultivate market demand and attract investors.
2. Government Regulation and Legal Framework
The gambling industry in the Philippines is strictly regulated by the Philippine Amusement and Gaming Corporation (PAGCOR). Additionally, the Philippines has a complete legal system to regulate online and offline gambling, including preventing money laundering, consumer protection, and anti-gambling addiction measures.
Although Uzbekistan has already established some preliminary legal frameworks to support the legalization of online gambling, building a comprehensive regulatory system remains a challenge.
Key issues include how to handle cross-border gambling, ensure a transparent tax system, and establish strict anti-money laundering and consumer protection mechanisms. If Uzbekistan can learn from the successful experience of the Philippines and establish a sound regulatory system, it will help to rapidly develop the industry.
3. Attractiveness to Foreign Investment
The Philippines attracts a large amount of foreign investment, especially from Chinese and other Asian gambling operators, by offering attractive gambling licenses (such as POGO). This foreign investment not only promotes the growth of the gambling market but also increases government tax revenue.
In recent years, Uzbekistan has been making efforts to attract foreign investment, especially in non-oil industries. Legalizing online gambling could become an important way to attract foreign investment, but to attract enough investors, Uzbekistan needs to provide clear and stable policies, legal frameworks, and a fair competitive environment.
4. Sociocultural Factors
The cultural background and social structure of the Philippines are relatively accepting of gambling, which has a certain historical background in local society, and the gambling industry has become a part of the Philippine economy.
Uzbekistan, a predominantly Muslim country, traditionally has strong taboos against gambling. In the past, gambling was considered illegal in society, and although economic reforms and social concepts have changed in recent years, fully accepting gambling may face greater challenges under cultural and religious backgrounds. The government may need to balance economic development with sociocultural contradictions.
5. Technology and Infrastructure
The Philippines has relatively mature online gambling platforms and relatively well-developed internet infrastructure. This has enabled it to become one of the leading online gambling destinations in Asia.
Although Uzbekistan has made some progress in information technology infrastructure in recent years, it is still relatively behind the Philippines. The success of online gambling not only requires well-developed networks and technological support but also needs to strengthen the popularization and security of digital payment systems.
6. Gambling Addiction and Social Issues
Although the gambling industry brings considerable economic benefits, the Philippines also faces challenges of gambling addiction and social issues, especially among foreign employees of POGO. The Philippine government has taken measures to control these issues, but social challenges still exist.
Given the more conservative social structure of Uzbekistan, issues such as gambling addiction, youth problems, and negative social impacts may provoke stronger opposition. How the government balances economic benefits and social risks will be a key point.
So, can Uzbekistan become the next Philippines? It's hard to say.
Firstly, Uzbekistan needs to build long-term technology infrastructure, regulatory systems, and sociocultural acceptance. Additionally, how to balance the economic benefits of gambling legalization with social risks (such as gambling addiction) is another key factor.
If Uzbekistan can effectively learn from the successful experience of the Philippines and adjust according to its actual conditions, it may become an important online gambling market in the coming years.
