This comprehensive overview of the Kazakhstan gambling market, produced by the GCA team, highlights its current status and growth potential, examines key market segments along with their financial performance, discusses regulatory developments, tax implications and growth prospects.

Key market features and growth potential

 

Kazakhstan continues to establish itself as a prominent market for gambling in Central Asia. With a population of approximately 19.8 million, including 11.5 million working-age citizens, and an average monthly salary of around $780 (exceeding $900 in major cities like Nur-Sultan and Almaty), the country provides fertile ground for the gambling industry. Around 6 million Kazakh citizens express interest in gambling, making Kazakhstan one of the largest markets in the region.

Kazakhstan’s relatively liberal regulatory environment sets it apart from neighboring countries where gambling is either highly restricted or outright banned. The gambling industry is subject to licensing and operates in designated gambling zones such as Kapchagay and Borovoe, with plans for expansion, inter alia, along the Chinese border to attract tourists from abroad.

Kazakhstan’s gambling audience includes adults aged 18 and older, representing approximately 30.6% of the total population, or roughly 6 million potential customers. While cultural and religious factors limit participation by about 30%, the country’s openness to modernization and European influences, along with a significant interest in sports betting (particularly in football and boxing), positions it as an attractive market for growth. Referring to this data, the volume of potential customers is - 4,241,000.

The country currently issues 12 bookmaker licenses, 6 casino licenses, 3 totalizator licenses and 3 slot hall licenses.

Required documents for the license application include:
1. Application submitted electronically via elicense.kz with a digital signature.
2. An electronic copy of the payment confirmation for the licensing fee, which is 640 times monthly calculation index or 2,362,880 KZT (approximately $4,923).
3. Proof of ownership of a building (or part of it), valued at approximately $100,000 to $200,000.
4. Proof of ownership of equipment for betting and a cash register (fiscal device), with verified copies of documents, costing about $20,000 to $30,000.
5. Rules for the bookmaker's operations and betting acceptance in Kazakh and Russian, submitted as an electronic document.
6. An e-copy o contract with a Kazakh bank to open a deposit of 40,000 times monthly calculation index, callable on demand, amounting to 147,680,000 KZT (approximately $307,667).

Each casino and slot hall typically has between 200 to 400 units of equipment. The largest share among all types of gambling business in Kazakhstan is occupied by online gambling. This is where more than half of all the money that ‘spins’ in the gambling business goes.

Advertising is only allowed for sporting events and is strictly prohibited on the internet, television, transportation, billboards, in the street, except at your office in gambling zones. Additionally, bets can only be accepted on sporting events that are organized by recognized sports federations, clubs, and other organizations. It is also mandatory to have a contract with a security organization.

According to the Bureau of National Statistics of the Agency for Strategic Planning and Reforms, in 2022, of the total volume of services about 353.8 billion KZT (roughly $1 billion), or 61.8%, Kazakhstanis spent on online betting, betting in virtual bookmakers and casinos. In contrast to online betting companies, the turnover of land-based casinos appears much more modest. In 2022 players spent 26.4 billion KZT in the gaming houses of Kaskelen and Shchuchinsk. According to tax revenues collection data from the largest players in the industry, Kazakhstan saw a significant increase in payments from bookmakers and casino operators in 2022. The state treasury received over 125.3 billion KZT, representing a 59.3% increase compared to 2021. This figure is a combined estimate from 13 leading companies, selected by Energyprom.kz based on their scale. In 2022, the top spot for tax contributions in Kazakhstan was taken by the bookmaker Olimp.bet, which paid 59.1 billion KZT into the state budget. They were followed by 1xBet.kz, with a contribution of 30.3 billion KZT. Alpha-bet also ranked among the top three, having paid 7.4 billion KZT in taxes.

As of the end of 2023, Kazakhstan citizens spent about $US1 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. In Kazakhstan, approximately 80% of all gambling and betting activities are conducted through illegal channels, posing a serious challenge to the country's economy. Most of these illicit operations occur on online platforms registered abroad. Despite the government's substantial efforts to crack down on illegal operations, these platforms continue to thrive. Experts estimate that the losses from illegal betting and online casinos amount to millions of dollars annually. Players are drawn to these unregulated services because of their higher payouts, tax-free nature, and easy access, further intensifying the problem.

In 2023, the total amount of taxes on gambling activities 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 halls. Overall Gambling Turnover is estimated to exceed 1 trillion KZT (around $2 billion).

In 2024, as of September 2024, taxes from bookmakers amounted to 46.99 billion KZT, while overall gambling industry taxes for the same period reached 60.21 billion KZT.

Gambling operators and bookmakers in Kazakhstan are subject to various taxes. The main taxes are as follows:

1. Corporate Income Tax (CIT): the rate is 20% of the company's net profit, assessed annually.
2. Value Added Tax (VAT) the VAT rate is 12% on the company's revenue, calculated monthly. The payable VAT to the budget is determined based on the difference between the VAT on taxable turnover and the VAT allowed for deduction, which is set at 85% of the taxable turnover.
3. Licensing Fees: Gambling operators and bookmakers are required to obtain licenses, for which corresponding fees apply.
4. Gambling Activity Taxes: Additional taxes and fees may apply based on the type of operation (bookmaker, casino, slot halls, etc.).
5. Tax on Gaming Business per Unit:

Gaming Table: 1,660 times the monthly calculation index per month

Slot Machine: 60 times the monthly calculation index per month

Totalizator Cash Desk: 300 times the monthly calculation index per month

Electronic Totalizator Cash Desk: 4,000 times the monthly calculation index per month

Bookmaker's Cash Desk: 300 times the monthly calculation index per month

Electronic Bookmaker's Cash Desk: 3,000 times the monthly calculation index per month

1. Personal Income Tax (PIT): 10% on winnings (withdrawals), typically covered by the gambling establishment.
2. Other Minor Taxes, such as property tax and vehicle tax.

 

Financial Performance by Segment

 

Online Casino

• CPA (Cost Per Acquisition): $100
• ARPU (Average Revenue Per User): $1,800/month due to high player engagement and attractive bonuses
• LTV (Lifetime Value): $21,600 over 12 months. This makes online casinos a highly profitable segment with great player loyalty
• ROI (Return on Investment): High, as each dollar invested yields significant profits, driven by high player engagement and lucrative bonuses.

Lotteries and Instant Games

• CPA: $70. This figure is lower than other segments due to wide access and ease of participation
• ARPU: $600/month, reflecting lower engagement compared to casinos and betting
• LTV: $7,200 over 12 months. Stable segment with a moderate yield
• ROI: Stable, though lower compared to other segments, lotteries remain a solid and consistent revenue stream.

Poker

• CPA: $70–$80. Attracting players requires a moderate cost given the competition and unique offerings
• ARPU: $1,200/month, driven by high activity and player attachment
• LTV: $14,400 over 12 months. The segment attracts more experienced and stable players
• ROI: Moderate, with steady retention rates and revenue from loyal, experienced players.

Sports Betting

• CPA: ~$200. This figure takes into account marketing costs, bonuses and promotions aimed at attracting new players
• ARPU: $1,500/month. This value reflects player activity, average betting size and frequency of betting participation
• LTV: $18,000 over 12 months. This value reflects the cumulative revenue per player over the lifetime of their interaction with the platform
• ROI: Exceptional, with $88 returned for every dollar invested. Despite high marketing costs, sports betting remains highly profitable, especially in football, boxing, and mixed martial arts (MMA).

These data demonstrate that sports betting in Kazakhstan remains a highly profitable sector with strong returns, despite significant player acquisition costs. The largest share of the gambling industry in Kazakhstan is held by online gambling, which accounts for more than half of all money circulating in the gambling business.

 

Regulatory and Tax Developments

 

Kazakhstan has been tightening regulations to combat illegal gambling operations. The main objective is to reduce the share of illegal betting and return financial flows to the legal sector of the economy. It is planned to strengthen control over online operators and introduce stricter sanctions against illegal sites, which should help reduce the volume of shadow business.

Currently, the licensing of casinos and other gambling establishments is carried out in designated zones such as Kapchagay and Borovoe. The government is actively promoting the establishment of new gaming zones aimed at enhancing infrastructure and attracting both local and international players. In 2023, the government first unveiled plans to open 4 new gaming zones, in particular along the border with China. The creation of new gambling zones and investment in infrastructure is expected to drive growth and bring significant revenue back into the legal sector.

The government is also considering tax reforms to further streamline the industry. For example, the proposed legislation includes removing VAT, abolishing the gambling business tax (tax on objects) for bookmakers, introducing a new gambling business tax (tax on objects) as a 10% deduction from revenue (turnover), and establishing a corporate income tax rate of 25% for the bookmaker sector based on net income.

 

Conclusion 

 

Kazakhstan’s gambling market offers significant opportunities for growth. With an expanding regulatory framework, new gambling zones, and the potential to attract foreign investment, the market is poised for long-term success. These developments, combined with the government’s efforts to combat illegal operators, will help unlock the full potential of this burgeoning industry. Kazakhstan stands as a prime destination for investment in the gambling sector, offering strong returns and promising future prospects for both local and international operators.