Article by George Mamulaishvili

The Asian Gaming Market is Gaining Momentum

 

In recent years, Asian markets have shown a strong desire to develop the gambling sector in

their jurisdictions, which has had a positive impact on their economies. Although these

markets need to make significant improvements to reach the level of European countries, they have demonstrated a good trend that attracts new investors to this region. Most importantly, regulatory authorities have begun to view the gambling sector as part of the economy, making legislative changes to facilitate its development. For example, Uzbekistan started issuing gambling licenses in 2025.

With the upcoming legalization of gambling in Uzbekistan in 2025, demand for licenses from

various operators is growing, indicating increasing interest in this potentially lucrative

market. This rising demand emphasizes the need for a comprehensive analysis of the

gambling market to better understand its dynamics, challenges, and opportunities. This

market analysis aims to provide valuable insights into the current state of gambling in

Uzbekistan, highlighting the factors influencing its development and the potential for future

growth.

 

At the end of 2023, Uzbekistan’s population was 37 million, with a projected annual growth

rate of 2%. The working-age population aged 16 to 60 years is approximately 20.8 million

people. At the beginning of 2024, the average nominal salary in Uzbekistan was about 4.92

million UZS (approximately $388.60), while in the capital, Tashkent, the average salary was

higher at 8.12 million UZS (approximately $642). 

Based on these data, the potential audience for gambling, including people aged 18 and over (of which 3% are women), is about 32.14% of the total population, equivalent to

approximately 11,892,000 people, 965,000 of whom live in Tashkent. Considering the high

level of religiosity among the population (89% practice Islam), the traditional upbringing, and

the presence of retirees, the potential audience is reduced by about 40%. However, this factor is partially offset by the traditionally high interest in gambling inherent in Asian cultures. Thus, the potential customer base is estimated at 7,092,000 people.

 

Uzbekistan is one of the most sports-oriented countries in the region, with a particular interest in football. The national team actively participates in international competitions, creating high demand for sports betting.

 

In 2023, according to official data, Uzbeks spent about $1 billion on online games, according

to official data, although unofficial estimates suggest that this figure could be 7–8 times

higher. On average, a player spends up to $1,000 per year on gambling. Considering these numbers, revenue from illegally operating operators in Uzbekistan could reach $2 billion,

leading to a loss of more than $100 million in taxes under the current tax regime. This

amount represents net gambling revenue under the GGR tax. Uzbekistan’s gambling tax is the most favourable for the gambling business compared to other countries in the region at 4% of GGR. Other taxes resulting from the taxation of the gambling industry and the growth

potential of this sector, considering its geographic features and neighbouring states, should

also be considered.

 

To better understand the value of a player in the gambling industry in Uzbekistan, key

performance indicators (KPIs) were analyzed, including cost per acquisition (CPA), average

revenue per user (ARPU), and lifetime value (LTV). The results are as follows:

 

Online Casinos:

CPA: About $100 per player.

ARPU: About $1,800 per month.

LTV: $21,600 over 12 months.

ROI: Very high, as revenue significantly exceeds acquisition costs. These costs may decrease after legalization.

 

Sports Betting:

CPA: About $90 per player.

ARPU: About $1,500 per month.

LTV: $18,000 over 12 months.

ROI: High profitability due to player engagement and frequent betting.

 

Lotteries and Instant Games:

CPA: About $70 per player.

ARPU: About $600 per month.

LTV: $7,200 over 12 months.

ROI: Moderate, as these players are less active and generate less revenue.

 

Poker:

CPA: About $80 per player.

ARPU: About $1,200 per month.

LTV: $14,400 over 12 months.

ROI: Moderate income, depending on competition and player activity.

 

Based on these data, the following conclusions can be drawn:

Online casinos remain the most profitable sector with high revenue per player and significant ROI.

Sports betting also demonstrates high ROI due to player engagement and active participation.

Lotteries and instant games show lower profitability but remain viable.

Poker offers a good balance between acquisition costs and revenue.

 

These calculations show that operators aiming to succeed in the Uzbek market should focus

on active high-revenue sectors, optimizing their spending on player acquisition and retention.

 

Regulation and Licensing

The body responsible for managing and licensing gambling will issue licenses. The activity

tax is set at 4% of turnover after deducting all winnings and refunds. Individuals receiving

winnings will be exempt from personal income tax. The new rules do not require

beneficiaries to obtain residency but clearly outline the rules for identifying the ultimate

beneficiaries of companies. Additionally, a betting accounting centre will be created to

monitor companies’ activities.

 

Conclusion

The gambling market in Uzbekistan has significant growth potential, driven by expanding

legal opportunities and attracting foreign investments. Strengthened regulation and combating illegal operators will help recover lost funds for the state budget, improve conditions for local players, and attract more international operators and tourists. Further reforms in this sector are expected to lead to sustainable growth and infrastructure improvements, making Uzbekistan a leading gambling industry hub in Central Asia.

 

Expanding legal opportunities include licensing operators, which will increase government

revenues through taxes and license fees. Attracting foreign investors will provide the capital

and technology needed to develop the industry.

 

Strengthening regulation and combating illegal operators will reduce the outflow of funds

abroad and increase state budget revenues. This will also create safer and more transparent

conditions for players, enhancing trust in legal operators. As a result of these measures,

sustainable growth of the Uzbek gambling market, infrastructure improvements, and job

creation are expected. This will make Uzbekistan an attractive centre for international

operators and tourists, contributing to the country’s economic development.

 

Kazakhstan: Another Promising Market in the Region

This market overview can also help investors assess its current state and growth potential,

analyze key market segments and their financial indicators, and consider regulatory issues,

tax implications, and growth prospects.

 

Main Market Characteristics and Growth Potential

Kazakhstan continues to assert itself as the leading gambling market in Central Asia. With a

population of approximately 19.8 million people, including 11.5 million working-age

citizens, and an average monthly salary of about $780 (over $900 in major cities such as Nur-Sultan and Almaty), the country provides fertile ground for the gambling industry.

Approximately 6 million Kazakh citizens show interest in gambling, making Kazakhstan one

of the largest markets in the region.

 

Kazakhstan’s relatively liberal regulatory environment distinguishes it from neighbouring

countries, where gambling is either heavily restricted or entirely prohibited. The gambling

industry is regulated by licensing and operates in designated gaming zones such as

 

Kapchagay and Borovoe, with plans to expand, including zones on the border with China to

attract foreign tourists.

 

The Kazakh gambling audience includes adults aged 18 and older, comprising about 30.6%

of the total population or about 6 million potential clients. Although cultural and religious

factors limit participation by approximately 30%, the country’s openness to modernization

and European influences, as well as significant interest in sports betting (particularly football

and boxing), make the market attractive for growth. Considering this data, the potential

customer base is approximately 4,241,000 people.

 

Currently, the country has issued 12 licenses for bookmaker activities, 6 licenses for casinos,

3 licenses for totalizators, and 3 licenses for slot machine halls.

 

Each casino and slot machine hall typically has 200 to 400 units of equipment. The largest

share among all types of gambling businesses in Kazakhstan belongs to online betting. More

than half of all money circulating in the gambling industry is attributed to this segment.

Advertising is allowed only for sports events and is strictly prohibited on the internet,

television, transport, billboards, and streets, except for offices in gaming zones. Additionally,

bets may only be accepted on sporting events organized by recognized sports federations,

clubs, and other organizations. A contract with a security organization is mandatory.

According to data from the Bureau of National Statistics of the Agency for Strategic Planning

and Reforms, in 2022, out of the total volume of services, about 353.8 billion KZT

(approximately $1 billion), or 61.8%, was spent by Kazakhstanis on online betting, virtual

bookmakers, and casinos. While the turnover of land-based casinos appears significantly

more modest. In 2022, players spent 26.4 billion KZT in gaming houses in Kaskelen and

Shchuchinsk. According to tax revenue data from the largest industry players, Kazakhstan

recorded significant growth in payments from bookmakers and casino operators in 2022. The

state treasury received more than 125.3 billion KZT, which is 59.3% more than in 2021. The

leader in tax payments in Kazakhstan in 2022 was the bookmaker Olimp.bet, contributing

59.1 billion KZT to the budget. It was followed by 1xBet.kz with a contribution of 30.3

billion KZT and Alpha-bet, which paid 7.4 billion KZT in taxes.

 

By the end of 2023, Kazakh citizens spent about $1 billion on online gambling and sports

betting. However, due to the current ban on online casinos, much of this money goes to

foreign illegal platforms. Approximately 80% of all gambling and betting operations in

Kazakhstan are conducted through illegal channels, representing a severe problem for the

country’s economy. Most such operations occur on online platforms registered abroad.

Despite significant government efforts to combat illegal operations, such platforms continue

to thrive. Experts estimate losses from illegal betting and online casinos amount to millions

of dollars annually. Players are attracted to these unregulated services due to higher payouts, lack of taxes, and easy access, exacerbating the problem.

 

In 2023, the total tax revenue from gambling reached 104.3 billion KZT (approximately $230

million), including 87 billion KZT ($192.5 million) from bookmakers, 16 billion KZT ($35.3

million) from casinos, and 1.1 billion KZT ($2.4 million) from slot machine halls. The total

turnover of gambling is estimated at more than 1 trillion KZT (about $2 billion).

 

In 2024, as of September, taxes from bookmakers amounted to 46.99 billion KZT, while the

total taxes of the gambling industry reached 60.21 billion KZT in the same period.

 

Regulation and Tax Changes

Kazakhstan is strengthening regulations to combat illegal gambling operations. The main

goal is to reduce the share of illegal betting and return financial flows to the legal sector of

the economy. Plans include tighter control over online operators and stricter penalties against illegal websites, which should help reduce the volume of the shadow business.

Currently, licensing for casinos and other gambling establishments is carried out in

designated zones such as Kapchagay and Borovoe. The government is actively promoting the creation of new gaming zones aimed at improving infrastructure and attracting both local and international players. In 2023, the government announced plans for the first time to open four new gaming zones, particularly on the border with China. The creation of new gaming zones and investments in infrastructure are expected to contribute to growth and the return of significant revenues to the legal sector.

 

The government is also considering tax reforms to further simplify the industry. For example,

proposed legislation includes the elimination of VAT, the abolition of the gambling tax

(object tax) for bookmakers, the introduction of a new gambling tax of 10% of revenue

(turnover), and the establishment of a corporate income tax rate of 25% for the bookmaker

sector based on net profit.

 

Conclusion

Kazakhstan’s gambling market presents substantial opportunities for growth. The expansion

of the regulatory framework, the creation of new gaming zones, and the potential to attract

foreign investment set the stage for long-term success. These changes, along with

government efforts to combat illegal operators, will help unlock the full potential of this

developing industry. Kazakhstan is becoming an attractive destination for investments in the

gambling sector, offering high returns and prospects for both local and international

operators.