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THE CHANGES


Unrest in Kazakhstan, which broke out at the beginning of last year, saw huge problems as the internet was cut off completely in the country and mobile communication (mysteriously) stopped working. Tis saw casinos and betting sites affected and the shutdown of payment services and a massive drop in player traffic as a result. Many casino and bookmaker affiliate programmes stopped working until the internet resumed.


Within six working days between January 5th and 10th the online betting market dropped by 95 per cent.


Online gambling is still illegal in Kazakhstan except for online sports betting which is


growing in popularity with new operators entering the market. Tere are currently 16 online betting operators.


Some hopes were raised that the online sector would see further regulations when the law 356- VI in 2020 was introduced but this in the end only included small changes and amendments and no new regulations.


When the casinos were limited to the two zones this move initially saw a boom in sports betting which at the time was not covered by the relocation law.


Ten in 2019 things came to a head with increased reports of illegal activities, tax avoidance, and an increase in gambling addiction issues.


Online gambling is still illegal in Kazakhstan except for online sports betting which is growing in popularity with new operators entering the market. There are currently 16 online betting operators. Some hopes were raised that the online sector would see further regulations when the law 356-VI in 2020 was introduced.


P130 WIRE / PULSE / INSIGHT / REPORTS


It was reported that in 2019 bookmakers paid T16.5bn in taxes suggesting an overall declared revenue of around T170bn. Tere have been repeated talks about tax collection.


To bring revenue out of the grey area the authorities introduced several restrictive regulations via the law 356-VI which have had a detrimental impact on the sports betting sector in particular. Tese came into force in January 2021.


Firstly, they introduced an amendment to restrict wagering at sporting events and limit the opening of landbased betting shops and totalisators within the two gaming zones.


Ten they announced the set up of a government- administered bets registration database where all players and clients would have to register before any transaction could take place. Tis would enable a player’s relative to set up exclusion limits via a court appeal. Te system was to be outsourced to a private company called Exirius LLP on behalf of the Ministry of Culture and Sports. PayBox Money LLP would provide the payment platform.


It would have meant all transactions would be transparent and payouts guaranteed, and it would offer player protection. Te scheme was based on the Russian initiative Centre for Taking Interactive Bets (TSUPIS).


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