Casino Business in Kyrgyzstan: The Government Will Legalise Gambling in 2021

On April 6, 2021, the unicameral parliament Jogorku Kenesh voted for opening casinos in the country. The bill successfully passed the first reading. By July 2021, the deputies must amend the document and put it to a second vote.

Currently, the bill is at the stage of public discussion. Many officials, including the President of the Republic, Sadyr Japarov, support the innovations actively.

The local government has calculated that the legalisation of the gambling business here will provide additional $7.1 million budget revenues per year. Besides, the new industry will create extensive job opportunities.

The company Smart Money has prepared a brief analysis of the draft law for you. You can start a casino in Georgia, Kyrgyzstan, Ukraine, and other CIS countries with us. We provide full technical and legal support for gambling operators and help them with obtaining licences.

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What Innovations Are Provided in the Kyrgyz Republic

The gambling business here is prohibited in accordance with Law No. 191 dated 01.11.2011, as well as some other regulatory legal acts.

The Parliament Jogorku Kenesh proposes to make some changes to the documents:

• to allow the opening of casinos in Issyk-Kul — the region with the highest tourist traffic in the country;
• to legalise the work of bookmaker offices, organisers of poker tournaments, and lottery operators;
• to provide for a transparent legalisation procedure with the issuance of permits for 5 years;
• to allocate a plot of 1,200 hectares in Tamchy for the gambling business (the largest airport in the region);
• to introduce a flexible fiscal system with income tax for each employee hired, company tax, and patent fees;
• to allow advertising of gaming activities, including slots, sweepstakes, and bookmaker services.

As before, slot machines in Kyrgyzstan will be inaccessible to the local population. The organisation of the gaming business in any other region will also remain banned.

The Characteristics of the Issyk-Kul Recreational Zone

Issyk-Kul is the largest deep-water lake in Kyrgyzstan. It is located between the ridges of the Northern Tien Shan mountain system. The unique combination of mountain and sea climates makes the lake a favourite place for vacationers. The tourist object is popular both among the local population and foreigners.

There are several resort towns in the recreational zone of Issyk-Kul. The airport is located near the village of Tamchy. As expected by the government, the largest tourist and entertainment complex in the country will appear here in a few years.

Slot machines in Issyk-Kul will be installed in modern casinos with lounge areas, hotels, restaurants, recreation areas, and karaoke bars.

Besides, the bill will allow pubs to operate around the clock. Bookmaker businesses in Kyrgyzstan will also come out of the shadows. They will be able to accept sports bets and manage sweepstakes legally.

More than 1,200 hectares are planned to be allocated for the gambling zone. In addition to entertainment complexes, large infrastructural objects will emerge here — hotels, shopping centres, SPA-salons, and water parks. The plans of the Parliament Jogorku Kenesh also include the reconstruction of the working airport in Tamchy.

The Basic Requirements for Licensees

To open an offline casino in the Issyk-Kul region, an entrepreneur must obtain a permit.

The draft law provides for the following basic requirements for applicants:

1. The registration of a company on the territory of Kyrgyzstan. Both foreigners and residents of the country can open offline casinos in Tamchy.
2. The use of certified hardware and software. The equipment must be released no earlier than 2016. Any modifications and changes in the settings of slot machines without written approval from their manufacturers are prohibited.
3. The protection of an investment project. To open a casino in the country, a businessman must provide a detailed plan for the construction and development of a gambling establishment. Entrepreneurs can build separate casinos or finance large entertainment complexes along with hotels and restaurants.
4. The employment of workers over 23 years of age. 50% of hired personnel, including 10% of the management team, must be citizens of Kyrgyzstan.

The Nuances of the Gaming Business Taxation

The local government hopes that the legalisation of start-ups here will increase the revenue side of the budget by $7.1 million per year. The lion's share of the receipts will come from tax deductions to the local treasury.

The bill provides for the following taxes on conducting a gambling business in Kyrgyzstan:

Businessmen who plan to organise a local land-based casino must pay $590 for each piece of gaming equipment located in an entertainment hall. These are slot machines, betting machines, lottery terminals, computer simulators, bar consoles, virtual poker machines, etc.

The Main Things about the Gaming Business in Kyrgyzstan

The legalisation of such a type of projects in the area is aimed at the replenishment of the country's budget and the growth of the region’s tourist attractiveness.

• The bill implies the building of several casino complexes in the recreation area ​​Issyk-Kul. The plot of 1200 hectares will be allocated for the construction. In addition to gambling halls, many hotels, restaurants, and shopping centres will appear here.
• Entrepreneurs will be able to open casinos and organise betting or lottery businesses in Tamchy. The licences will be valid for 5 years. To receive a permission document, it is necessary to register a company in Kyrgyzstan, provide a plan for the construction of an establishment and documents for the purchase or rental of equipment.
• Operators have to pay a $13.3 thousand patent fee, as well as a $590 deduction for each piece of gambling hardware placed in an entertainment hall.

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