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Based on the fact that the regulation was introduced relatively recently, it can be assumed that the model of accepting only non-residents will soon show its inefficiency due to the complexity of its implementation and the lack of satisfaction of the internal needs of citizens. In our opinion, this will force Kyrgyzstan to return to the discussion about the reform of the gambling industry.
GAMBLING TAXES
It should be emphasised that in Kyrgyzstan, along with licence fees, there are additional payments for conducting activities in the field of gambling.
Operators are charged for the basic elements of the operator infrastructure in accordance with the field of activity. Below is information on the amounts of such fees applicable to elements of the operator's infrastructure (fees below are as of 2023):
l Game table €10,512 l Slot machine 2023 – €788
l Land-based totalisator cash desk €3,679 l
Land-based sports betting cash desks – €3,679
For online casinos and online betting, the tax rate is set at four per cent of incomes
Tax on winnings is 10 per cent if the winnings exceed €52.
MARKET SIZE
At its core, the domestic market of Kyrgyzstan is unregulated, so it is not possible to talk about market volumes.
Tere are such betting operators on the market: 1xBet, Olimpbet, Ringobet.
A very important restriction for casinos or betting shops in
Kyrgyzstan is the prohibition on attracting local audiences. Residents of Kyrgyzstan are
not allowed to visit landbased establishments and gamble online. Apart from severely limiting the pool of potential visitors, this prohibition is very challenging to enforce. There is no guarantee of entry using passports, as many Kyrgyz
nationals hold passports from other countries, and no other control mechanisms have been devised.
CURRENT STATUS
A very important restriction for casinos or betting shops in Kyrgyzstan is the prohibition on attracting local audiences. Residents of Kyrgyzstan are not allowed to visit landbased establishments and gamble online.
Apart from severely limiting the pool of potential visitors, this prohibition is very challenging to enforce. Tere is no guarantee of entry using passports, as many Kyrgyz nationals hold passports from other countries, and no other control mechanisms have been devised.
Analysing the structure of Kyrgyzstan regulations, it can be seen that the Government used Russia and Kazakhstan regulatory frameworks as an inspiration for the development of the regulations. Te only material difference between regulatory frameworks is the ban on locals.
Tis leads to similar regulatory errors as in Russia and Kazakhstan and contributes to the development of offshore operations in the market ultimately defeating the whole purpose of legalisation.
Also, because the economy of Kyrgyzstan needs to raise funds, the National Bank of Kyrgyzstan recently proposed to allow the online sector to accept payments in both national and foreign currencies, which may be an interesting solution in the region.
WIRE / PULSE / INSIGHT / REPORTS P145
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