Armenia’s iGaming sector sees tax policy overhaul, 500% increase in duties
The parliament of Armenia has passed amendments to the law “On State Duty,” increasing duties on iGaming companies fivefold. The move, approved in both readings, is part of efforts to regulate the rapidly growing gambling sector and generate more revenue for the state.
Deputy Finance Minister Karen Tamazyan stated that the revision aligns the law with the Tax Code. He noted that taxation had remained unchanged for over a decade, making the revisions long overdue. “These changes will increase the taxes paid by eight companies from 800 million drams (€1.86 million) to 4 billion drams (€9.3 million),” finance minister stated.
Tamazyan highlighted the industry’s rapid expansion, with turnover from online gambling rising from 44 billion drams (€102.5 million) in 2014 to 108 billion drams (€251.5 million) within the first nine months of 2016. These companies operate with profitability margins of 5 percent to 20 percent, making them a lucrative sector for tax revenue collection.
Taxes hiked 500%
Now, under the new measures, duties for online gambling and lottery companies will rise from 100 million drams (€233,000) to 500 million drams (€1.16 million), local media outlets reported.
This tax increase aligns with broader efforts to boost state revenue and introduce stricter oversight of the gambling industry. Recently, discussions were held about imposing a 10 percent turnover tax on the sector. A proposal by Hayk Sargsyan of the ruling Civil Contract faction received positive feedback from the National Assembly Committee on Economic Affairs on 5 February 2025.
Sargsyan argued that previous regulatory measures had failed to curb the industry’s rapid growth. He believes additional taxation is needed to control the expansion of online and virtual gambling platforms. Despite prior legislative attempts, gambling activity has continued to rise at an alarming rate, prompting further intervention.
Companies may oppose the move
And why not? Armenia’s gambling sector has seen exponential growth in recent years, spanning traditional casinos, online gaming, lotteries, and betting. The total amount wagered in 2024 exceeded $18 billion (€17.34 million), marking a 17-fold increase from 2018. This sharp rise has raised concerns about gambling addiction and its broader societal impact.
Critics warn that increased taxation could have unintended consequences. Babken Tunyan, Deputy Chairman of the Economic Affairs Committee, cautioned that higher taxes could drive companies out of Armenia, either relocating to other countries or shifting to unregulated online spaces where enforcement is difficult.
He also noted that increased taxation does not always guarantee higher government revenue and might inadvertently reduce overall tax collection. Despite these concerns, the Armenian government is determined to push ahead with regulatory changes.
