The law entered into force on July 1, 2024, although certain provisions have later implementation timelines. In particular, subordinate legislative acts arising from the law are to be adopted within eight months after the law enters into force. Chapter 6 of the law, which defines and regulates the Operator for the Regulation of Gambling Activities, enters into force after the Government establishes the procedure for consortium participation in the Operator selection process and after a contract is concluded with the Operator.
The Government of the Republic of Armenia, by Decision N 1149-N dated August 14, 2025, has already established the procedure for conducting the competition to select the operator for the regulation of gambling activities, the procedure for consortium participation in the operator selection process, and the procedure for concluding a contract with the operator.
The Operator performs important functions in the regulation and monitoring of the gaming sector. It ensures the issuance, extension, and termination of operational certificates, certification of compliance for gaming products, and connection to the monitoring center. The Operator provides recommendations on technical standards, rules for "responsible gaming" and standards, conducts visits and monitoring, detects violations and informs relevant authorities. It cooperates with state bodies, ensures market analysis, data confidentiality, accessibility about persons with restrictions, service pricing, and opinions on players' complaints. The Operator has real-time access to organizers' systems and performs transaction monitoring, analysis, and risk assessment.
The presence of the Operator is excellent for the gaming sector, as it ensures transparency, security, and fairness. This approach promotes responsible gaming, protects interests, and contributes to the sustainable development of the market, making the entire system more reliable and efficient.
I think the 10% turnover tax on gambling businesses in Armenia is a reasonable measure overall, especially when compared to taxation in other sectors. For instance, law firms and other legal activities face an 18% profit tax plus 20% VAT, which can add up to a significant effective rate on their operations. In that light, a flat 10% on turnover for gambling seems fair and not overly burdensome, as it aligns with the government's efforts to generate revenue from a high-margin industry without stifling it entirely. I don't believe it imposes an undue financial strain, because businesses' annual profits can be monitored and reported to assess true impact—this transparency should help address any concerns and show whether adjustments are needed down the line.
On control over the illegal segment in Armenia, I believe it's currently quite moderate and has room for improvement, despite recent steps like website blocking . Reports highlight ongoing concerns about addiction and black market growth amid regulatory changes. The introduction of a dedicated Operator (as outlined in the gambling law) should help significantly, though—its monitoring, certification, and real-time oversight functions will provide a much better overview of the market, making it easier to crack down on unlicensed operations and ensure compliance. Overall, this could lead to a more controlled and sustainable industry in the long run.