State Duty for Gambling Sector to Double from April

The National Assembly of Armenia has adopted in the second reading and in full the draft law authored by MP Hayk Sargsyan from the "Civil Contract" faction, which aims to increase the state duty for the gambling sector. The package of laws amending and supplementing the Tax Code of the Republic of Armenia was approved with 58 votes in favor, 2 against, and 17 abstentions. Changes were made to the draft during discussions from the first to the second reading.

In the initial version of the project, the MP proposed to set a 10 percent turnover tax for gambling and betting activities. During discussions from the first to the second reading, the government suggested that the increased burden on the gaming sector should follow a rationale of continuous increases in the state duty rates. "The proposed legislative changes will double the duties for online casinos and betting activities. We will have an additional annual state revenue of around 13 billion AMD," Sargsyan stated. He emphasized that the additional state revenues will be allocated to schools, kindergartens, hospitals, roads, and other infrastructure, as well as internal and external security systems.

“We have framed the increase in financial burden in such a way that it will rise every year, and through this tool, we will be able to address the operator issue. Through the operator, we will limit our compatriots' opportunities to gamble at casinos, and in some cases for certain social groups and civil servants, we will completely prohibit it,” the MP urged citizens to refrain from online casinos. According to him, gambling is an addiction and a disease similar to drug addiction, which can be treated. The MP noted that many say they will stop gambling if they get their lost money back. “This is the most destructive thought that can exist. Forget about getting your lost money back; you will never be able to retrieve it. By chasing after it, you will incur even more losses and accumulate more debts, ultimately leading to your ruin,” Sargsyan warned. The MP promised to continue making legislative changes to limit this detrimental phenomenon.

Deputy Finance Minister Arman Poghosyan reminded that “the state duty is designed based on the logic of licensing the right to accept bets. The government's proposal is to double the state duty starting from April 1, and then to have a continuous annual increase, at the current rate of the state duty, until the monitoring center for the gaming sector is created and the operator institution is introduced.” According to the deputy minister, the government places great importance on the introduction of the operator system. On March 5, Prime Minister Nikol Pashinyan also spoke about the implementation of a controlling operator system in the gambling sector, mentioning that this system would allow the state to oversee bets, winnings, and their taxation.