Over the past 12 years, the number of casinos in Kazakhstan has decreased by 3.6 times. The authorities express concern about the reduction of jobs, the decline in budget revenues, and the drop in tourist flow. Representatives of the gambling industry, in turn, complain about excessive tax burdens, which they say are “suffocating” the industry.

The number of casinos in Kazakhstan is rapidly decreasing. According to data, since 2013, the number of licensed gambling establishments in the country has decreased more than three times. Back then, there were 22, by 2017 there were only 13, and by the beginning of 2021, only 9. By 2025, only 6 casinos are officially operating in Kazakhstan.

The Ministry of Tourism attributes this trend to increased tax pressure: in 2017, the tax burden on the gambling industry was doubled, according to the Kursiv portal.

What is happening in Konaev — Kazakhstan’s Las Vegas

Konaev was declared a gaming zone in 2007. Upon entering the city, casinos immediately catch the eye — these are large buildings with bright signs and neon banners. However, the overall appearance of the city leaves a different impression: there is construction debris everywhere, tire repair shops, dusty fences, and wastelands. All of this hardly resembles a resort area capable of attracting tourists and wealthy visitors. A logical question arises — could this be one of the reasons for the mass closure of casinos?

This is indirectly confirmed by the feedback from guests, such as players from Mongolia, who “left” $3,000 and ultimately won only 700 tenge ($1.55).

“We came from Ulaanbaatar to Almaty on business and decided to stop here to play poker. But the casino here has very few visitors. We have played in Macau, Monte Carlo, in Korea, and in other countries as well. When you enter a casino, the first thing you notice is the number of people at the table: if there are many players, the chances of winning are higher, but if there are few, it’s almost impossible to win, and the process itself becomes less interesting.”

According to them, Chinese people are the most frequent visitors to casinos worldwide. However, guests from Mongolia are surprised that there are not as many Chinese visitors in Kazakhstan, despite the countries being neighbors.

High taxes “strangling” Kazakhstan’s casinos

When asked about the reasons behind the closure of casinos in Konev, the staff of one of the casinos responded that the main issue is high taxes amidst already expensive business operations.

According to Kazakhstan’s “Gambling Business Law,” casinos must be located within a hotel complex of at least a three-star category. There are also equipment requirements: a casino must have at least 30 gaming tables and 60 slot machines.

“Among the former Soviet Union countries, Kazakhstan has the highest taxes on gambling tables and machines. In Kyrgyzstan, they are half as low, and in Russia, they are 2.5 times lower. In 2018, Kazakhstan introduced a new tax code, which doubled the budget payments. It went from 830 MRP (1.9 million tenge / $4,220 in 2018) to 1,660 MRP (3.9 million tenge / $8,670 in 2018) per gaming table,” says a casino employee who wished to remain anonymous.

He recalls the sad story of the “Asia” casino, which never opened its doors but became well-known among Kazakhstani people due to its large screen.

“The casino was built between 2015 and 2017, and even before opening, they were filming the movie ‘The Gambler’ there. Everything was almost ready for opening, they just needed to cut the ribbon. Then came 2018, and taxes doubled — they simply couldn’t open. After this, what kind of investors would want to open a gambling establishment?” he rhetorically asks.

According to him, a large gambling establishment typically pays 2.6-2.7 billion tenge ($5.5-$5.7 million) in taxes annually.

Competition for tourists

One of the issues casinos in Konev face is the high competition for tourists from Almaty and neighboring countries.

“The quality and quantity of entertainment in Konev play a major role. The higher the taxes, the less money is left to bring in performers, organize raffles, open restaurants, and so on. Almaty is also a serious competitor — they host events, have more qualified staff, and all of this has an impact,” says the art director of one of the casinos.

New gambling establishments are also opening in Kyrgyzstan, and employees of Kazakhstan’s casinos have noticed that some guests have started to visit there: due to lower taxes in Kyrgyzstan, businesses can afford to organize higher-quality events.

The casino notes that after the introduction of the visa-free regime with China, the flow of guests has increased, and some establishments have even added Chinese-language menus. However, casino staff believe that this measure could have been implemented earlier.

“In Russia, a visa-free regime for Chinese citizens (for organized groups) has been in place for many years in Primorye and Sochi (the gambling zones ‘Primorye’ and ‘Krasnaya Polyana’ — editor’s note). They can come and gamble for several days, which is why these places are always crowded”.

Bureaucratic challenges

According to the administrator, there are also bureaucratic difficulties in the operation of casinos.

“If you enter a casino, you will first need to fill out a form with your details. We will check you against multiple databases. We need to ensure that you are not a debtor and not on the terrorist watchlist. This will take about 20 minutes,” he explains.

New tax code

Casino owners are anxiously awaiting the introduction of the new Tax Code. The old version already led to the closure of many establishments, and they fear that the new code will completely destroy the industry.

“According to our calculations, only two casinos will remain in the country, and the rest will close. Currently, five large casinos operate in Konev, employing about 4,000 people, not including those working in related sectors, such as cleaning, ice delivery, and beverage supply. These establishments are important for the city’s economy,” say casino representatives.

This is also confirmed by the Ministry of Tourism. The Committee for the Regulation of Gambling Business and Lotteries is concerned about the situation: “The Committee views the decrease in the number of casinos as a negative trend, as it will lead to a reduction in state budget revenues, fewer jobs, and a decline in tourist flow to our country.”