Uzbekistan has introduced amendments to its online gambling and lottery licensing rules. The new regulations aim to modernise the gambling industry while ensuring strict compliance with legal standards. All gamers and lottery players must now use licensed platforms where digital identity verification and transactions will be documented electronically.

Key highlights of new regulations

The new regulation prohibits any entity from organising online gambling, lotteries, and betting activities in Uzbekistan without a licence from the National Agency for Prospective Projects (NAPP) for a period of five years. The initial licensing fee is approximately $1,500, and to renew the licence, a payment of $730 is required.

To obtain an online gambling licence in Uzbekistan, the application process requires a formal written request containing the necessary documents and fees. These permits are subject to renewal every five years.

This regulation aims to protect participants from fraud and underage gambling. Therefore, participants must undergo digital identity verification, which is confirmed against government databases. This ensures that only eligible individuals can access gambling platforms.

National Agency for Prospective Projects (NAPP)

NAPP is the central body responsible for issuing licences and overseeing compliance with the new regulations. It plays a crucial role in monitoring the activities of licensed operators, ensuring they adhere to the legal framework established by the government.

Operators are required to run their services from the national internet segment of Uzbekistan. The software and technologies used, including random number generators, must be certified by competent authorities for fairness and security. Several competent authorities, such as the Ministry of Internal Affairs, Central Bank, and Tax Committee, should cooperate to combat illegal gambling and ensure compliance.

Restrictions and prohibitions

Uzbekistan’s new regulations prohibit the establishment of physical gambling venues such as casinos and slot machine halls, except for designated lottery ticket sales points. Additionally, betting is restricted on both local events and youth sporting events unless it involves international competitions.

Strict measures are in place to prevent minors from gambling. Payments made from accounts or cards belonging to individuals below the legal gambling age are prohibited, and a comprehensive system of identity verification has been implemented.

Financial requirements for organisers

Online gambling and betting operators are required to maintain a minimum authorised capital of $4.4 million and a reserve fund of $2.2 million. For lottery operators, the minimum required authorised capital is $1.6 million and a reserve fund of $1.2 million.

According to the regulations, at least 50 percent of the income must be allocated to a prize fund for traditional lotteries and 75 percent for electronic lotteries. This ensures that returns to participants are fair.

The regulations also include provisions to prevent money laundering by excluding individuals with a history of money laundering and related offences from positions of responsibility in gambling organisations. This ensures that gambling businesses are managed by properly qualified individuals.