Armenia Advances Stricter Gambling Oversight and Financial Blocks
#BettingLegislation #Armenia
Armenia’s parliament has passed the first reading of a comprehensive package of gambling amendments, updating its official gaming regulation laws to cut off financial flows to unlicensed platforms and establish a centralized tracking system. Developed under sustained political momentum from Civil Contract MP Hayk Sargsyan, the changes to the Law on Regulation of Gaming Activities aim to enforce strict player protections while crippling the operations of offshore gambling sites.
At the core of this enforcement strategy are strict banking restrictions. Armenian commercial banks and financial institutions will be legally required to block transfers and payments linked to illegal gambling. This includes halting transactions carrying Merchant Category Code (MCC) 7995, the international designation for gambling services. Consequently, payment processing will remain exclusive to operators licensed under Armenian law, establishing a direct financial barrier against unlicensed platforms. The framework also mandates internet service providers to block illegal websites and implements a complete ban on advertising for unauthorized operators, while requiring licensed entities to obtain regulatory approval before launching marketing campaigns.
The legislative package introduces targeted player safety measures. All licensed online casino platforms and mobile applications must integrate a self-blocking tool, enabling users to freeze their accounts instantly. Furthermore, the bill bans pensioners without alternative income streams and welfare recipients from participating in gambling activities. It also proposes an individual loss cap, limiting a player's losses to 20% of their documented income to prevent debt accumulation.
On the technical side, the National Assembly previously approved infrastructure changes to manage the gaming sector through a single private operator. This operator, selected via a 15-year competitive tender, will deploy a centralized platform integrated with all licensed physical and online venues. Rafael Gevorgyan, deputy chairman of the State Revenue Committee, stated that the system will allow the state to receive real-time, centralized data on all industry transactions, including bets, wins, and losses, addressing current deficiencies in data collection. These updates build upon regulations enacted on 1 January 2025, which introduced geo-blocking and mandatory .am domain hosting.
However, the National Association of Gaming Operators (NAGO) has expressed concerns over these restrictions. The association warned that strict domestic limits could inadvertently cause vulnerable players to migrate to unlicensed foreign platforms operating outside state oversight. NAGO also contested figures cited during parliamentary debates, clarifying that the AMD 7.4 trillion statistic represented total betting turnover rather than actual consumer losses. Critics from local media have similarly argued that a growing black market could undermine the accountability and safety mechanisms maintained by compliant domestic operators. This regulatory overhaul coincides with heavy fiscal tightening, including a 10% turnover tax introduced in mid-2025 and ongoing annual increases to online gaming license fees stretching through 2028.
