Armenia eyes 10% revenue tax on online casinos, PM revives proposal
Armenia’s Prime Minister, Nikol Pashinyan, has revived a proposal to introduce an additional 10 percent turnover tax on online casino gaming revenue. The legislation, proposed by Hayk Sargsyan, a Member of Parliament from the ruling Civil Contract faction, had previously been postponed but is now set to proceed. The move aims to increase tax contributions from the rapidly growing sector.
If approved, which seems certain, the tax will take effect on 1 April 2025 and will be implemented alongside existing levies and duties. However, bookmakers will be exempt from the new measure.
Speaking at a meeting of the Parliamentary Committee on Economic Issues, Sargsyan proposed fast-tracking the bill by including it in the agenda for the next National Assembly session under a special procedure.
Online casinos soar in Armenia
He justified the proposed tax by highlighting the exponential growth of Armenia’s online casino industry. According to official data, the sector’s turnover has surged from 14 billion drams in 2010 to 6.3 trillion drams (€15.3 billion) in 2023.
Despite this increase, the taxes and duties paid by the industry have risen from just 1 billion drams to 33 billion drams over the same period. The government argues that the additional levy is necessary to ensure fair taxation and to boost state revenue.
This proposal follows a series of reforms to Armenia’s gambling tax framework. In 2023, the government adjusted the taxation of gambling winnings, implementing separate tax rates for large and small wins. Under the revised legislation, winnings above 5 million drams (€11,000) are now subject to a 5 percent income tax, down from the previous 10 percent.
Smaller winnings, defined as net wins under 5 million drams, are taxed at a flat rate of 10 percent. The aim was to simplify taxation for casual gamblers while maintaining tax revenue from high earners.
Additionally, the Armenian parliament recently passed amendments to the law “On State Duty,” increasing duties on iGaming companies fivefold. The measure, approved in both readings, was part of broader efforts to regulate the rapidly expanding gambling sector and generate more state revenue.
Increased tax: a risky bet?
Deputy Finance Minister Karen Tamazyan stated that the revision aligns the law with the Tax Code, pointing out that taxation had remained unchanged for over a decade.
However, the proposed turnover tax has raised concerns among major industry players. Critics argue that the measure could hurt the sector by lowering profitability and discouraging investment. Some even caution that the tax might drive players towards unregulated gambling platforms, potentially weakening the government’s regulatory control.
If implemented, the policy could have a major impact on Armenia’s gambling industry, increasing state revenue while affecting online gaming operators.
