Gambling and Betting in Armenia has experienced explosive growth over the past decade, making it one of the most dynamic sectors of the national economy. According to Armenia’s State Revenue Committee, the total amount of bets placed in 2024 reached 7.236 trillion drams (approximately $18.3 billion) – a 17-fold increase compared to 2018. In 2022, revenue from lotteries, gambling, and casinos amounted to approximately 18.8 billion drams (€43.5 million), accounting for 10.4% of the country’s services sector. The surge is driven primarily by online betting, which grew more than 21 times over the same period, with some of Armenia’s largest gambling companies now ranked among the country’s top taxpayers.
As both local and international investors continue choosing Armenia to register their companies, it is imperative to consider the legislative nuances and legal stipulations governing gambling and betting in Armenia.
Legal Definitions of Gaming Activities
The legislative framework governing gambling in Armenia is primarily bifurcated into two domains: “winning games” and “lotteries.” The pertinent statutes in force include the Republic of Armenia’s laws “On Winning Games, Online Winning Games, and Casinos” and “On Lotteries”. However, these laws have been repealed and replaced by the Law of Armenia on Regulation of Gambling Activity, which is set to enter into force soon by the end of 2026. Under the law, the following definitions apply:
- Gambling: Activity is defined as the organization of winning games, internet winning games, bookmaking, or lotteries. It refers to any risk-based activity where a participant provides a stake for a chance to win a prize.
- Lottery: A public event wherein the organizer conducts a draw from a lottery fund among participants. The winnings are determined solely by chance and do not depend on the participant’s actions or will.
- Bookmaking Activity: This is defined as the acceptance of wagers on the predicted outcomes of sports, social, political, or other events. The law makes a critical distinction in how winnings are determined. Totalizator: winnings are determined based on a coefficient calculated from the total sum of bets placed by all participants (pari-mutuel). Bookmaker’s Office: winnings are determined by a coefficient previously established by the organizer.
- Game Product: All software, IT systems, and equipment used to enable participation.
Age Restrictions
Participation in lotteries (draw-based, non-draw, or combined) is restricted to individuals who have reached the age of 18. However, eligibility is restricted to individuals who have reached the age of 21 for all other forms of gambling, including winning games, internet winning games, and bookmaking activity.
Sanctions for Illegal Organization of Games
The organization of gambling activities without state registration as a legal entity or without obtaining the requisite license is classified as engaging in illegal business activities. The legislation of the Republic of Armenia prescribes both administrative and criminal liability for such offenses.
Specifically, according to the RA Code of Administrative Offenses, engaging in illegal entrepreneurial activity—defined as conducting business without state registration or requisite notification for activities requiring a license, or without possessing the appropriate license – results in mandatory confiscation of all IT equipment and “Game Products,” alongside administrative fines of up to 10,000,000 AMD
The RA Criminal Code stipulates penalties for engaging in illegal business activities, including fines ranging from 10,000 to 30,000 AMD, community service for a duration of one hundred to two hundred hours, restriction of liberty for up to three years, short-term imprisonment for up to two months, or imprisonment for a period not exceeding three years.
In addition to the aforementioned sanctions, the Law of Armenia on Regulation of Gambling Activity delineates penalties for contravening its provisions, including:
- Issuance of a warning and recommendation to rectify violations, accompanied by a fine
- Suspension of the license
- Revocation of the license
- Mandatory Confiscation of Assets
Regulatory Authorities in Gambling and Betting in Armenia
The RA State Revenue Committee is responsible for overseeing the operations of lotteries, gambling, online gambling, and casinos. Regarding the licensing procedure within this domain, the Ministry of Economy of the Republic of Armenia serves as the authorized body.
Tax Obligations for Entities Involved in Gambling and Betting
As per the RA law “On State Duty,” the annual state fee for organizing games with winnings varies based on the location:
- In Tsakhkadzor city, the fee is 180,000,000 AMD.
- In Sevan city, the fee is 150,000,000 AMD.
- In Jermuk city, the fee is 100,000,000 AMD.
- In Meghri city, the fee is 35,000,000 AMD.
- In other locations, the fee is 5,500,000,000 AMD.
Given the substantial annual state duty amounts, individuals or entities organizing gambling activities enjoy exemptions from nearly all taxes. The tax obligation under the legislation of the Republic of Armenia is the income tax, assessed at a rate of 18% on the tax base. Additionally, the legal framework now integrates a turnover-based tax of 10% (effective July 2025).
Advertising of Gambling and Betting in Armenia
Under the Law of the Republic of Armenia “On Advertising,” organizers of lotteries, games with winnings, internet-based games with winnings, or casinos lacking the requisite license are prohibited from advertising their activities within the Republic of Armenia.
Specifically, it is forbidden to advertise any game with winnings, online games with winnings, casinos, gaming halls, or their lottery organizers, except for advertising on their official websites or within the premises of casinos, gaming halls, or sweepstakes venues (such as gaming halls or bookmaker’s offices). Additionally, advertising is permitted at border entry points of the Republic of Armenia and in hotels that meet the qualification standards of at least four stars.
Important to Consider
When advertising gambling, online gambling, or casinos, it is mandatory to display “21+”. Conversely, when advertising lotteries, non-lottery games, or combined lotteries, the “18+” mark must be prominently visible.
However, the advertising of lotteries, gambling, online gambling, or casinos is strictly prohibited if it involves any of the following:
- Depicting cash or underage individuals,
- Directly targeting minors in any manner,
- Conveying the notion that participation in the game guarantees regular income or serves as an alternative to employment,
- Creating the impression of guaranteed income or profits,
- Suggesting that the game can lead to social, professional, or sporting success.
Legislative Changes in Gambling and Betting in Armenia
The new law is slated to come into effect by the end of 2026, although there is a possibility that it may happen later to allow for the resolution of all organizational matters.
For comprehensive guidance on your gambling rights in Armenia or assistance in obtaining a gambling license, our legal team stands ready to address any issues pertaining to this domain.
