The Government of Uzbekistan has officially introduced a detailed regulatory framework for online gambling and lotteries, marking a pivotal shift in the country’s approach to digital gaming activities. The newly approved regulations were formalized by the Cabinet of Ministers on 6 December 2024 and are slated to take effect on 1 January 2025.

Uzbekistan Unveils Comprehensive Regulatory Framework for Online Gambling and Lotteries

Primary Licensing Authority: NAPP

The National Agency for Prospective Projects (NAPP) will serve as the primary regulatory body, overseeing the licensing and compliance processes for operators within the country. The NAPP is tasked with issuing five-year licenses to operators of online gambling platforms, betting services, and lottery operations.

To ensure stringent compliance, operators must meet substantial financial requirements. These include:

• Online Gambling and Betting Platforms: Operators are mandated to maintain an authorized capital of 56.25bn soums ($4.4m) and establish a reserve fund of 28.125bn soums.
• Lottery Operators: While facing slightly lower financial thresholds, they must still adhere to strict requirements to operate legally within the jurisdiction.

The implementation of these financial prerequisites is designed to guarantee the financial stability of operators and protect the interests of participants.

Key Regulatory Provisions

The newly outlined framework includes a comprehensive set of regulations and restrictions aimed at promoting responsible gambling practices and ensuring operational transparency. The key provisions include:

• Mandatory Use of the National Internet Domain: All licensed gambling and betting platforms must operate through Uzbekistan’s .uz domain to ensure oversight and jurisdictional compliance.
• Software Certification: Operators must utilize certified gaming software that adheres to rigorous security and fairness standards.
• Player Verification Requirements: Platforms must implement comprehensive player verification processes to prevent fraud, protect minors, and ensure compliance with local laws.

To further enforce transparency, the government will maintain a Unified State Register of Bets and Players, which will enable authorities to monitor gambling activities effectively.

Strict Participation and Operational Restrictions

The framework includes stringent participation rules aimed at safeguarding vulnerable individuals and promoting ethical gambling practices. These measures include:

• Age Restrictions: Gambling is strictly prohibited for individuals under 18 years.
• Restricted Categories: Certain other restricted groups, as defined by the government, are also barred from participating in gambling activities.
• Prohibition of Physical Gambling Venues: Traditional physical gambling venues such as casinos and slot machine halls are strictly banned. The only exceptions apply to locations authorized to sell lottery tickets.
• Betting Limitations: The regulations prohibit betting on local sports events, youth sports, and other sensitive competitions to preserve the integrity of these activities.

Monitoring and Compliance Mechanisms

The National Agency for Prospective Projects (NAPP) will play a central role in enforcing compliance with the new regulations. The NAPP has been empowered to impose fines and penalties on non-compliant operators, including foreign entities offering unlicensed services to Uzbek residents.

Key regulatory mechanisms include:

1. Finalization of Regulatory Documents: By 1 January 2025, the NAPP will finalize all necessary regulatory documents and establish a robust monitoring framework.
2. Cross-Agency Collaboration: The NAPP will work closely with the Ministry of Internal Affairs, the Central Bank, and the Tax Committee to ensure seamless compliance and oversight.
3. Fines and Enforcement: Non-compliant operators risk severe financial penalties and potential legal action under Uzbekistan’s updated gambling laws.

Impact on Uzbekistan’s Digital Gaming Landscape

The introduction of this regulatory framework is a significant milestone for Uzbekistan’s burgeoning digital gaming sector. By establishing clear rules and financial thresholds, the government aims to achieve several key objectives:

1. Enhancing Player Protection: Comprehensive player verification processes and age restrictions will help safeguard vulnerable individuals from gambling-related harm.
2. Promoting Financial Stability: The mandatory reserve funds and capital requirements ensure that operators possess the financial resilience to deliver reliable services.
3. Ensuring Fair Play: Software certification standards guarantee the integrity and fairness of gaming activities, promoting trust among participants.
4. Boosting Economic Development: By formalizing the online gambling sector, Uzbekistan aims to generate tax revenue, create job opportunities, and attract foreign investment in the digital economy.

Future Steps and Compliance Roadmap

Ahead of the official rollout on 1 January 2025, the NAPP, in coordination with relevant government agencies, will focus on finalizing the following milestones:

• Issuance of Regulatory Guidelines: The NAPP will publish comprehensive guidelines for operators, outlining licensing requirements, compliance standards, and reporting obligations.
• Deployment of Monitoring Systems: The government will establish advanced monitoring systems to oversee gambling activities, ensuring compliance with the new regulations.
• Educational Campaigns: Public awareness campaigns will be launched to educate citizens on responsible gambling practices and the legal framework governing online gambling.

Conclusion: The Regulatory Framework

Uzbekistan’s introduction of a detailed regulatory framework for online gambling and lotteries marks a significant transformation in the country’s approach to digital gaming. With strict licensing requirements, player protection mechanisms, and compliance measures, the government aims to create a transparent, fair, and secure environment for operators and participants alike.

FAQs About Uzbekistan’s New Regulatory Framework for Online Gambling and Lotteries

1. What changes have been introduced under Uzbekistan’s new regulatory framework for online gambling and lotteries?

Uzbekistan’s government has established a detailed regulatory framework for online gambling and lottery operations. This includes strict licensing requirements, financial prerequisites for operators, player verification rules, and the prohibition of physical gambling venues.

2. When will the new regulations take effect?

The regulations will take effect on 1 January 2025.

3. Who is responsible for regulating online gambling and lotteries in Uzbekistan?

The National Agency for Prospective Projects (NAPP) is the primary regulatory authority overseeing licensing, compliance, and enforcement.

4. What are the financial requirements for operators under the new framework?

Operators must meet the following financial prerequisites:

• Online Gambling and Betting Platforms: Authorized capital of 56.25bn soums ($4.4m) and a reserve fund of 28.125bn soums.
• Lottery Operators: Lower, but still strict, financial thresholds.

5. Are there any restrictions on gambling participation?

Yes, the following participation restrictions apply:

• Age Restriction: Only individuals 18 years and older are allowed to gamble.
• Restricted Categories: Certain groups, as defined by the government, are prohibited from participating.
• Local Sports Betting: Betting on local sports events, youth sports, and sensitive competitions is prohibited.

6. Are physical gambling venues allowed under the new framework?

No, physical gambling venues such as casinos and slot machine halls are strictly banned, except for authorized locations selling lottery tickets.

7. What are the requirements for licensed gambling platforms?

Licensed platforms must:

• Operate under Uzbekistan’s .uz domain.
• Use certified gaming software that ensures fairness and security.
• Implement comprehensive player verification processes to prevent fraud and underage gambling.

8. How will gambling activities be monitored?

The NAPP will maintain a Unified State Register of Bets and Players to monitor gambling activities. Advanced monitoring systems will also be deployed to ensure operator compliance.

9. What penalties exist for non-compliance?

Non-compliant operators, including foreign entities offering unlicensed services, risk facing severe fines and legal action under Uzbekistan’s gambling laws.

10. What impact will the new regulations have on Uzbekistan’s digital gaming sector?

The framework aims to:

• Enhance player protection.
• Promote financial stability of operators.
• Ensure fair play through software certification.
• Generate tax revenue, create jobs, and attract foreign investment in the digital economy.

11. What steps will the government take to prepare for the regulation rollout?

Ahead of the 1 January 2025 rollout, the NAPP and relevant agencies will:

• Finalize regulatory guidelines for operators.
• Deploy monitoring systems for gambling oversight.
• Launch educational campaigns to promote responsible gambling practices.

12. What is Uzbekistan’s long-term goal with this regulatory framework?

The government aims to create a transparent, fair, and secure environment for online gambling and lotteries, positioning Uzbekistan as a responsible and regulated player in the global digital gaming market.