Gambling Business Environment in Kyrgyzstan: Prospects of the New Market
After 6 years of bans and restrictions, the casino sector in this country is making a comeback and will begin to bring income to the public treasury. On April 21, 2021, the bill on the creation of a closed gambling zone next to the Tamchy airport passed in the first reading.
In an interview on April 26, the president supported the legislative initiative and expressed his hope for the fact that the opening of casinos in Issyk-Kul will be the first step towards the legalisation of gambling in every part of the country.
Today, specialists of Gaminator Casino will tell you what form the described sector will take, and what prospects it will open for the state and operators. To get additional services, you can turn to our managers.
Casinos, bookmaker’s offices, and gambling halls in Kyrgyzstan became a mass phenomenon back in the 90s. However, most of them operated in the shadow segment.
- In 2009, poker received a title of an intellectual sports discipline.
- In 2012, all land-based casinos and gambling halls were closed.
- In 2015, permits for the provision of betting and lottery services were revoked. Sweepstakes, bookmaker’s offices in Kyrgyzstan and the lotto field became a large-scale state monopoly network.
- Attempts to legalise land-based casinos in Kyrgyzstan were made literally a year after the law that banned gambling entered into force. The deputies of the Jogorku Kenesh came up with an idea to build the Manas reservation: a closed territory with a separate infrastructure and international flight connection. The bill was rejected due to a lack of support.
The government supported the opening of casinos in Kyrgyzstan only in April 2021.
The regulators have carefully studied the experience other countries and have chosen the following business schemes:
The republic decided to follow the example of Russia and create a special reservation, on the territory of which locals will not be allowed.
It is planned to open casinos in Issyk-Kul. The area of the future reservation will be 1,200 hectares.
The chosen business model is similar to the program that is used in the Ukrainian market. The gambling sphere in Tamchy will work together with the hotel sector.
In his interview, the president made a special emphasis on the fact that licences will be issued only to those investors who agree to pay for the construction of 5-star hotels.
The deputies are planning to establish casinos in Tamchy. The infrastructure of the reservation will include hotels, restaurants, recreation areas, and other locations that will attract tourists.
Today, the legalisation of the Kyrgyz gambling business is limited only to the Issyk-Kul region. It will work under special rules and have a separate tax rate, unlike other parts of the country.
Requirements for the implementation of gambling projects in Tamchy
50% of croupiers and casino managers should be locals, and 10% of the board of directors must also be residents of Kyrgyzstan
Offline casinos in Tamchy are designed to accept only adult foreign players.
Compliance with the established norms is controlled by:
A simplified visa-free system will make it possible to work with foreign traffic.
This decision is intended to increase the tourist flow and make the reservation more attractive for both customers and foreign investors
In Issyk Kul, payments will be available both in local and foreign currencies at the discretion of the owner of the facility
The maximum amount of mandatory contributions to the local treasury is up to 40% of annual revenues. It includes the licence fee and taxes on each unit of equipment
The legal regulations, on the basis of which land-based casinos will operate in Kyrgyzstan, are still being developed. So you still have enough time to prepare for the launch of your project.
To establish this kind of business in Kyrgyzstan, entrepreneurs must follow several steps:
- Register a company. This procedure should be done within the country, and at least 10% of the founders must be residents.
- Open a bank account. Applicants must prove the legitimacy of their financial sources.
- Fulfil requirements for premises. By analogy with the Ukrainian legislation, those entrepreneurs who have invested in the construction of 5-star hotels will be able to open a casino in Kyrgyzstan.
- Format of work. At this stage, operators can offer customers only card and table games, roulette, and gambling halls with hardware. The lottery business and sweepstakes remain under the government’s control.
The parliament believes that the passed bill can be an effective tool for attracting foreign investments and a way to improve the domestic economy.
The government is counting on an annual investment of 7–10 million dollars.
The industry will go out of the shadow sector, thus allowing the state to:
- stabilise the economic situation;
- create new job opportunities;
- optimise the tourism business.
Potential applicants are offered the following conditions:
- stable geopolitical situation;
- a constant increase in customers who live in those countries where gambling is strictly prohibited;
- loyal tax rates;
- visa-free regime.
The parliament has adopted the most effective business models: operation in the format of a closed gambling reservation and support for the hotel sector.
Features of the new market:
- Formats of work. Entrepreneurs can invest in casinos and gambling halls. Sweepstakes, lotteries and betting shops currently remain under the control of the state.
- Visa-free regime. All foreign citizens of age will be able to enter the restricted area, except for those people who have dual citizenship.
- Interactive payment systems. It will be possible to use any currency, at the discretion of the business owner.
Do not miss your chance to be one of the first to enter the new legal market! The Gaminator Casino team of specialists will provide assistance in collecting documents, purchasing certified hardware and software, and much more.
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