Armenia Approves Bill to Double Gambling Taxes
Armenia's parliament has given final approval to a bill that will see the country's state duty on gambling double.
LISTEN TO THIS ARTICLE:Starting April 1, the new law will introduce higher taxes on online casinos and bookmakers in the jurisdiction. According to Hayk Sargsyan, the ruling party MP behind the bill, these changes are expected to generate an additional 13 billion drams (over $32 million) in state revenue each year.
Before the law change, sports betting operators were required to pay a levy of 50 million drams ($126,000) on every 50 billion drams ($126 million) of betting turnover. Online casinos were previously required to pay a fee of 175 million drams ($443,000) for every 100 billion drams ($253 million) in betting activity.
When the new law comes into effect, sportsbooks will pay 100 million drams ($253,000) for every 50 billion drams in bets, while online casinos will be charged 350 million drams ($886,000) for every 100 billion drams in bets.
Further increases in duties are possible, with officials warning that rates could soar by up to five times the current amount in the years ahead. According to the bill, the duty could increase threefold, fourfold, or even fivefold by 2028 unless a regulatory body for the gambling industry is set up before then.
At present, the State Revenue Committee relies on self-reported data from gambling operators to determine company taxes.
Aside from the duty, gambling operators are also subject to a corporate profit tax and an annual licensing fee of 600 million drams ($1.5 million), which has been kept unchanged.
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Tighter Controls Ahead
This measure forms part of a wider initiative by the government to regulate the gambling industry. It will also involve the creation of a dedicated regulatory agency to keep a close eye on the sector's activities. This will enable the government to monitor betting activities, winnings, and tax payments.
Furthermore, talks are ongoing about restricting betting access for socially vulnerable groups and welfare recipients, such as individuals receiving social benefits.
If someone is placing bets and then receiving state benefits, we must provide the benefits, but at the same time, we must ban them from gambling.
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