New Restrictions on Gambling: Proposal by the Ministry of Finance

The Ministry of Finance is proposing amendments to the Law on Lotteries. This has been reported by the newspaper 'Pasts.'

According to the laws on 'Licensing' and 'Lotteries,' the activity of 'Organizing Lotteries' in the territory of the Republic of Armenia is subject to licensing. However, organizations that operate in foreign countries and do not have a license as defined by Armenian legislation for 'Organizing Internet Gambling' create opportunities for players to participate in any gambling game within the Republic of Armenia through the internet or any similar global system and any organized network communications.

These foreign entities have become uncompetitive for licensed companies in Armenia, creating a clearly anti-competitive environment. They are exempt from state duties and tax payments, carry out unregulated advertising, and, moreover, there is the issue of lack of customer protection. Unlike licensed operators in Armenia, there are no clear guarantees and mechanisms to safeguard customer rights when using services provided by unlicensed foreign companies engaging in similar activities.

The proposal suggests that websites of organizations that are organized in foreign countries and lack a license as defined by Armenian legislation, which create opportunities for players to participate in any gambling game through the internet or similar global systems and organized network communications, should be subject to blocking. For instance, it will be prohibited to create opportunities for participation in foreign-organized lotteries, to advertise these games in the territory of the Republic of Armenia and within the '.AM' domain.

Websites organized by foreign companies without the relevant license defined by Armenian legislation for internet gambling are subject to blocking by operators of public electronic communication networks that provide internet access services. In case of violation of this requirement, the operator's respective license is subject to suspension.