Armenia proposes stricter controls on illegal online gambling

Armenia is moving forward with a broad package of gambling reforms aimed at strengthening oversight of both licensed and unlicensed gambling activity. The proposed legislation would introduce stricter monitoring of online gambling operations while also placing new compliance obligations on internet service providers, financial institutions and licensed gaming operators.

The reforms were presented to Armenia’s National Assembly as lawmakers continue efforts to address concerns surrounding illegal gambling activity, consumer protection and financial transparency. If approved, the measures would significantly expand the state’s authority to restrict access to unlicensed gambling platforms operating within the country.

The draft legislation reflects a wider international trend in which governments are seeking stronger enforcement tools against offshore gambling websites that target local consumers without authorisation.

Armenia expands focus on illegal gambling activity

The proposed reforms would amend Armenia’s Law On Regulation of Gambling Activities and create new mechanisms for limiting access to unlicensed gambling services. One of the most notable provisions would require internet service providers to block gambling websites that operate without approval from Armenian authorities.

According to the proposal, the Armenian government would later establish the technical procedures, enforcement timelines and compliance standards that ISPs must follow when carrying out website blocking orders.

The legislation would also place responsibilities on Armenian commercial banks and financial organisations. Financial institutions would be expected to prevent transfers and payments linked to unlicensed gambling operators when those transactions are identified through gambling merchant category codes, commonly referred to as MCC codes.

MCC codes are widely used across the banking industry to classify payment transactions based on the nature of a merchant’s business activity. Under the Armenian proposal, authorities would rely on these classifications to help identify gambling-related transactions connected to unauthorised operators.

The draft law appears designed to reduce access to offshore gambling platforms while making it more difficult for local consumers to deposit funds with unlicensed providers.

Rafael Gevorkyan presents reform package

The amendments were presented by Rafael Gevorkyan, Deputy Chairman of Armenia’s State Revenue Committee, during discussions before the National Assembly’s Standing Committee on Economic Affairs.

The committee reviewed the proposed reforms and issued a positive opinion on the legislation, allowing the package to move forward for additional parliamentary consideration.

The Armenian government has framed the proposal as part of a broader effort to improve regulatory oversight of the gambling sector while addressing risks associated with illegal gambling operations. Officials have indicated that the measures are intended to strengthen enforcement rather than create a substantial new fiscal burden on the state budget.

Lawmakers have stated that the reforms are not expected to materially reduce government revenue or significantly increase public spending.

Advertising rules could become significantly stricter

The reform package would also introduce tighter advertising restrictions across Armenia’s regulated gambling sector.

Under the proposal, advertising for unlicensed gambling services would be prohibited on websites and digital platforms accessible within Armenia. The restrictions would not only apply to gambling operators themselves but also to online channels that distribute or promote such advertising content.

Licensed operators would also face additional compliance procedures before publishing promotional material. Advertisements related to licensed casinos, online gaming services, lotteries and bookmaker operations would require electronic approval from the authorised regulatory body prior to publication.

Regulators would have the authority to reject advertising content if it violates Armenian law or contains information considered false, inaccurate or misleading.

The proposed approval process signals a more interventionist regulatory approach toward gambling marketing practices. Similar frameworks have emerged in several international jurisdictions where regulators are increasing scrutiny of gambling advertisements, particularly in digital environments.

Supporters of stricter advertising oversight argue that tighter controls may help reduce exposure to potentially harmful gambling promotions, especially among younger audiences and vulnerable consumers.

New compliance obligations for gambling halls

The proposed legislation would also affect land-based gambling venues operating in Armenia.

Under the draft reforms, gambling halls would be required to process gaming chip exchanges through non-cash transactions tied to bank accounts registered in the player’s own name. The provision appears intended to strengthen financial traceability and improve anti-money laundering safeguards within the gambling sector.

However, the proposal includes an exception for foreign nationals, who may continue to use alternative payment arrangements under certain conditions.

The shift toward cashless gambling transactions reflects broader regulatory trends seen in multiple jurisdictions where authorities are attempting to improve financial monitoring and reduce risks linked to anonymous cash activity.

Industry observers note that such measures often aim to strengthen transparency while helping regulators monitor suspicious transactions more effectively.

Lottery operators face revised prize fund requirements

The draft legislation would also establish new operational standards for lottery organisers.

Operators running draw-based or combined lotteries would be required to allocate a prize fund equal to at least half of the total value of tickets entered into a draw. Tickets awarded as prizes would not count toward that calculation.

The requirement appears intended to create clearer standards regarding player returns and prize distribution structures.

Lottery regulation remains an important component of Armenia’s wider gambling market and the proposed changes suggest lawmakers are seeking more standardised operational rules across different gaming segments.

Armenian lawmakers continue gambling sector reforms

The latest proposal follows recent regulatory developments in Armenia’s gambling industry, including earlier parliamentary decisions to increase gambling tax rates. Some levies connected to gambling activity were reportedly doubled as authorities sought to strengthen fiscal oversight of the sector.

The current reform package indicates that Armenian lawmakers are continuing to pursue a more restrictive and closely supervised gambling framework.

If Parliament formally adopts the amendments, the Armenian government would have three months after the law enters into force to establish the secondary regulations necessary for implementation. These additional rules would likely define enforcement procedures related to website blocking, financial transaction restrictions and regulatory compliance obligations.

The final scope and practical impact of the reforms may depend heavily on how those secondary regulations are drafted and enforced.

Broader implications for Armenia’s gambling market

The proposed reforms could have important implications for both domestic operators and international gambling companies seeking access to Armenian consumers.

Licensed operators may face higher compliance costs due to stricter advertising approvals, operational reporting obligations and enhanced financial monitoring requirements. At the same time, authorities appear focused on limiting competition from unlicensed offshore platforms that currently operate outside Armenia’s regulatory system.

Supporters of the reforms may view the measures as necessary to strengthen consumer protections, improve regulatory enforcement and enhance financial oversight. Critics, however, could raise concerns regarding implementation challenges, operational burdens and the effectiveness of website blocking measures against international platforms.

As the legislation advances through the parliamentary process, the gambling industry will likely monitor closely how Armenian regulators balance enforcement objectives with the commercial realities of the sector.

Conclusion

Armenia’s proposed gambling reform package represents one of the country’s most comprehensive recent attempts to tighten oversight of both licensed and unlicensed gambling activity. By targeting website access, financial transactions, advertising standards and operational procedures, lawmakers are seeking to create a more controlled and closely monitored gambling environment.

The proposal highlights Armenia’s growing focus on regulatory enforcement and financial transparency within the gambling sector. If adopted, the reforms could reshape the operating conditions for gambling businesses while strengthening the government’s ability to act against unlicensed operators targeting Armenian consumers.

Although the legislation still requires further parliamentary approval, the direction of policy appears increasingly clear. Armenian authorities are moving toward stricter supervision of gambling activity with stronger compliance expectations across digital, financial and land-based sectors.

FAQs

What is the main purpose of Armenia’s proposed gambling reforms?
The reforms are designed to strengthen oversight of both licensed and unlicensed gambling activity while improving enforcement against illegal operators.

Would Armenia block unlicensed gambling websites?
Yes. The draft law would require internet service providers to block gambling websites operating without authorisation in Armenia.

How would Armenian banks be affected by the proposal?
Banks and financial institutions would be expected to restrict payments and transfers linked to unlicensed gambling operators.

Who presented the gambling reform package?
The reforms were presented by Rafael Gevorkyan, Deputy Chairman of Armenia’s State Revenue Committee.

Would licensed gambling operators also face new rules?
Yes. Licensed operators would face stricter advertising approval requirements and additional compliance obligations.

What changes are planned for gambling advertisements?
Advertising for unlicensed gambling services would be banned while licensed operators would need regulatory approval before publishing advertisements.

How would gambling halls be affected?
Gambling halls would be required to process gaming chip exchanges through non-cash transactions linked to the player’s own bank account.

Are lottery operators included in the reforms?
Yes. Lottery operators would need to maintain prize funds equal to at least half the value of entered tickets in qualifying draws.

Has the legislation already been approved?
No. The proposal has received a positive opinion from the relevant parliamentary committee but still requires further legislative approval.

Could the reforms affect Armenia’s gambling industry significantly?
Yes. The measures could increase compliance requirements for operators while strengthening enforcement against unlicensed platforms.