Kazakhstan Introduces New Gambling Reporting Duties to Tackle Problem Gambling

Summary:

• Operators must provide information on customers’ gambling activities to the Tax Authority
• Banks are also required to report on gambling-related transactions
• Kazakhstan still has no specific regulatory framework for gambling

Gambling operators in Kazakhstan will need to comply with new reporting duties as part of government efforts to combat addiction. Under new amendments to the country’s tax laws, gambling businesses are required to provide information on the gambling activities of local customers to the National Tax Authority.

Operators Now Required to Submit Reports to National Tax Authority

The new rules, approved this week by Kazakhstan parliament members, require licensed gambling operators in the country to submit to the tax authority key information on the gambling activities of Kazakh players, including the size of bets, losses, as well as winnings.

As the transmission will be done online, gambling providers should update their systems to enable the automatic transfer of data to the relevant agency.

As part of the new changes, it will also become mandatory for banks throughout the country to submit information on gambling-related transactions carried out by Kazakh customers, including balance transfers and individual transactions with gambling companies. Such information must be provided within 10 days of the transaction.

Kazakhstan’s gambling laws have come under review in recent months after President Kassym-Jomart Tokayev instructed government departments to come up with proposals to curb gambling addiction. Tokayev’s order came following observations that a growing number of young people are becoming addicted to gambling. Many Kazakh gamblers have also incurred huge debts due to addiction.

The Ministry of Tourism and Sports has put forward a series of new measures to address the problem, including an increase in the minimum age for gambling, from 21 to 25. The ministry will ensure strict compliance with the new rules by introducing new administrative duties to keep a close watch on the age of customers entering gambling venues.

Additionally, the Kazakhstan federal police force will be required to introduce policies for the prosecution of venues accommodating underage customers and offering illegal gambling services.

No Plans Yet for Gambling Regulatory Framework

President Tokayev is reportedly reviewing 62 recommendations on gambling under his term. However, despite pushing for major gambling reforms, the Kazakh leader has yet to consider establishing a dedicated regulatory system for the gambling sector.

At the moment, the gambling industry in Kazakhstan operates without a definite legislative framework. Only one regulatory policy is currently in effect, authorizing the provinces of Akmola and Almaty to launch state-owned casinos in authorized gambling zones.