Armenia is considering a major tightening of its gambling regulation framework, with lawmakers proposing measures to block access to unlicensed gambling websites and restrict related payments. The draft law also proposes new restrictions on licensed operators’ advertising and additional rules for gambling halls.
The proposed package of amendments has been prepared for the Law On Regulation of Gambling Activities. The changes were presented to the Standing Committee on Economic Affairs of the National Assembly of Armenia by Rafael Gevorkyan, Deputy Chairman of the State Revenue Committee.
Website blocking and payment restrictions targeting unlicensed gambling operators proposed
One of the key provisions of the draft legislation would require internet service providers to block unlicensed gambling websites under procedures and timeframes to be established by the Government.
In addition, Armenian commercial banks and financial organisations would be required to restrict transfers and payments made to unlicensed gambling platforms. The measures would apply to transactions identified through gambling merchant category codes (MCC codes).
The draft also prohibits advertising for unlicensed gambling websites within Armenia and across online sites accessible in the country.
Licensed gambling advertisements would require prior regulatory approval
The draft further proposes that advertisements for licensed casinos, online games, lotteries and bookmaker services must receive electronic approval from the authorised body before publication. Approval would not be granted if the advertising breaches legislation or contains false or misleading information.
New operational rules proposed for gambling halls and lottery prize distribution
The law also clarifies several operational rules for gambling halls. In particular, the exchange of gaming chips would only be permitted through non-cash transactions via bank accounts belonging to the player. An exception would apply to individuals identified as foreign nationals.
Organisers of draw-based or combined lotteries would also be required to create and distribute a prize fund equal to at least half the total value of tickets participating in the draw, excluding tickets awarded as prizes themselves.
Next steps for the proposed legislation
If amendments were adopted, secondary legislation required for website blocking and enforcement of the new restrictions would need to be adopted within three months of the law taking effect.
The Government does not expect the amendments to significantly reduce state revenues or increase budget expenditure.
The Standing Committee has issued a positive opinion on the bill and it has now been included on the agenda of the National Assembly session.
Armenian Parliament recently approved an increase in gambling tax rates, with some levies being doubled
