Reports KYRGYZSTAN MARKET REPORT
The war on Ukraine has caused huge dilemmas for Kyrgyzstan as Russia is its largest trading partner and investor. Imports from Russia make up around 30 per cent of the country’s overall imports. It is also the first choice destination for much of the country’s labour migrants. There are limited opportunities for employment in the country and around one million Kyrgyzstans work abroad (mostly in Russia) and send money home to support their families amounting to one-third of the country’s GDP.
Political leadership is questionable and there are ongoing reports of organised crime and economic oligarchies influencing the parties.
Te war on Ukraine has caused huge dilemmas for Kyrgyzstan as Russia is its largest trading partner and investor. Imports from Russia make up around 30 per cent of the country’s overall imports. It is also the first choice destination for much of the country’s labour migrants.
Tere are limited opportunities for employment in the country and around one million Kyrgyzstans work abroad (mostly in Russia) and send money home to support their families amounting to one-third of the country’s GDP.
Te standard of living is low and average monthly salary is around KGS30,000 ($344) whilst 88 per cent have internet access.
Inflation rate at the end of 2022 was 18 per cent whilst the supply of goods from Ukraine stopped which saw a lack of medicine in the pharmacies.
THE GAMBLING MARKET
Casinos were banned in Kyrgyzstan back in 2012 whilst sports betting was banned in 2015.
Te bill, ‘On the Prohibition of Gambling Activities in the Kyrgyz Republic No. 191’ was passed after repeated warnings from politicians that gambling had become a major social problem with links to organised crime. It came into force on January 1 2012.
Casinos and slot halls were shut down and the P140 WIRE / PULSE / INSIGHT / REPORTS
idea was to create special gambling zones for tourists to attract foreign investment and contribute to tourism and reduce unemployment, much like Kazakhstan.
Te closures saw a huge drop in tax revenues and unemployment figures rise. Ten three years later the government introduced a second ban targeting sports betting via the ‘On Amendments and Additions to Certain Legislative Acts No. 74’ introduced in April 2015.
Te law basically shut down the country’s entire gambling market. Online gambling was also banned although players simply accessed offshore online casinos and bookmakers.
Apparently, Kyrygzstan’s budget has been down to the tune of $500m each year in lost tax revenues.
But as the legal door closed the black market door opened and underground slots halls and lotteries mushroomed.
Two years after the ban there were said to be over 50 clandestine casinos whilst in the city of Osh alone there were an estimated 500 gambling halls both legal and illegal prior to the law in 2011.
Te Kyrgyzstan government reacted with an idea to pass new legislation and after several plans and suggestions it’s taken 10 years to come to fruition.
Te bill ‘Law No. 50 On Gambling in the Kyrgyz Republic’ was adopted last summer and will permit casinos, slot halls, and retail bookmaking
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