Armenia Increases Online Gambling Fees: What This Means for the Industry

Armenia has introduced significant changes to its online gambling regulations, implementing a structured increase in licensing fees for operators. The National Assembly recently approved a bill that will double fees for licensed gambling platforms starting April 1, 2025, with further annual increases planned through 2028. Additionally, the government will establish a new regulatory body to oversee gambling operations in the country.

These measures reflect Armenia’s strategy to boost state revenue and tighten control over the gambling sector. However, industry experts warn that these fee hikes may have unintended consequences, such as driving players toward unregulated platforms and putting financial strain on licensed operators.

Key Changes in Armenia’s Online Gambling Fees

The revised framework mandates gradual fee increases over four years:

• April 2025 – Licensing fees double for online casinos and sports betting operators.
• January 2026 – Fees will be three times the current rate.
• January 2027 – Fees will rise to four times the current rate.
• January 2028 – Fees will reach five times the current rate.

Initially, a proposed 10% turnover tax for online casinos was included in the bill but was later removed after a final parliamentary hearing in March 2025. Instead, the government opted to create a regulatory authority to enhance industry oversight and compliance.

Rationale Behind the New Regulations

Supporters of these changes, including Hayk Sargsyan of the ruling Civil Contract Party, argue that Armenia’s gambling industry has grown significantly, but state revenues from the sector have not kept pace. Statistics reveal that online casino turnover surged from AMD 14 billion in 2010 to AMD 6.3 trillion (€15.3 billion) in 2023, whereas tax revenues from the industry only reached AMD 33 billion in the same period.

By increasing licensing fees, the government aims to align the industry’s financial obligations with its market size. Another goal is to address problem gambling, with lawmakers suggesting that higher costs could discourage participation and promote responsible gaming.

Concerns Over Potential Market Shifts

While the government sees these fee hikes as a step toward sustainable regulation, industry leaders have raised concerns:

• Rise in Offshore Gambling – Higher licensing fees may push players toward unregulated offshore platforms that lack consumer protections and tax obligations.
• Impact on Operators – Increased costs could lead regulated platforms to reduce bonuses and payout rates, making them less attractive to players.
• Market Consolidation – Smaller gambling operators may struggle to stay competitive, leading to a market dominated by a few large companies.

The establishment of a new regulatory body will also introduce additional compliance requirements, adding another layer of complexity for gambling operators navigating the evolving legal landscape in Armenia.

Final Thoughts

Armenia’s decision to raise online gambling fees marks a major shift in its regulatory approach, aiming for higher state revenues and stronger industry oversight. However, the long-term impact remains uncertain, as stakeholders warn of possible unintended consequences. As these changes roll out, gambling operators will need to adapt their strategies to maintain competitiveness while staying compliant with the new regulatory environment.