Armenia has approved a hefty increase in tax for gambling operators, with the rate doubling from 1 April 2025. The government believes the move will generate an extra 13 billion drams ($33 million) each year, with authorities warning of further increases unless a gambling oversight body gets established. Armenia thus hopes to usher in a more fair and balanced gambling market mirroring other leading jurisdictions.
The Government Urges for Greater Transparency
Under the new law, gambling operators will be subject to increased state duties, with fee increases for sports betting firms and online casinos. Sports betting companies previously had to pay 50 million drams ($127,000) for every 50 billion drams ($127 million) in bets. Meanwhile, iGaming operators faced 175 million drams in levies ($444,000) for every 100 billion drams ($253 million) wagered.
As of 1 April, sportsbooks must pay 100 million drams ($253,000) for each 50 billion drams bet, while online casinos will be charged 350 million drams ($887,000) for each 100 billion drams gambled. Companies in the sector will still be required to pay an annual licensing fee of 600 million drams ($1.5 million) on top of corporate profit tax.
Authorities have indicated that if a gambling oversight body is not operational by 2028, the levies may increase threefold, fourfold, or even fivefold. This new regulator will oversee financial transactions. Armenia’s State Revenue Committee currently relies on voluntary information provided by operators to calculate taxes, leading lawmakers to suspect potential tax evasion.
Problem Gambling Is a Rising Concern
MP Hayk Sargsyan, the new bill’s author, revealed that Armenian online casinos have received over $2 billion in investments in 2024. He argued that if these funds had been redirected into the broader economy, Armenia’s GDP could have grown by 10–15%, while state revenues could have increased by 7.34%.
The government is also worried about the social impact of gambling and its possible correlation with suicide cases and poverty. Prime Minister Nikol Pashinyan also stressed the need to restrict access to gambling for vulnerable populations. Pashinyan initially suggested more drastic measures, such as possible internet blocking of foreign gambling websites, but the government chose a tax-based solution.
While Armenia hopes these new measures will enhance the government’s regulatory oversight, industry experts fear that the sudden tax hikes will harm the nation’s licensed sector and drive more people towards unregulated overseas operators. Swiftly establishing a new oversight body will be crucial for the safety of Armenian consumers and the health of the country’s gambling sector.
