Gambling and online casinos in Azerbaijan

Azerbaijan is a country with one of the toughest gambling regulation systems in the South Caucasus.

After the rapid growth of casinos in the 1990s, the government completely banned gambling, citing the fight against addiction and capital outflows.

Since then, all forms of gambling, except sports betting, are prohibited, and participation in them is punishable by law.

Nevertheless, with the development of digital technologies and the spread of cryptocurrencies, online gambling is gaining popularity, even despite locks and restrictions.

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Historical context

In the early 1990s, Azerbaijan, like other post-Soviet countries, experienced a "casino boom."

Dozens of gambling establishments were opened in Baku and resort areas, mainly aimed at foreign tourists.

However, in 1998, President Heydar Aliyev signed the Law "On the Prohibition of Gambling," after high-profile scandals with money laundering and the influence of criminal structures.

From that moment on, all casinos and slot machines were closed, and the gambling sector was completely liquidated.

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Legislative framework

Main regulations:

1. The Law of the Republic of Azerbaijan "On the Prohibition of Gambling" (1998) - prohibits the organization of gambling in the country.

2. The Criminal Code of Azerbaijan (Article 244) - establishes responsibility for organizing and participating in illegal games.

3. Cabinet of Ministers Resolution No. 22 (2010) - defines the procedure for licensing sports betting.

4. Law "On Advertising" (2015) - prohibits the promotion of any gambling services, except for legal sweepstakes.

Key points:

• casinos, slot machines and online gambling are prohibited;
• only state-regulated sports betting is allowed;
• the only legal operator is Topaz (Azerinteltek);
• participation in offshore casinos via the Internet is considered an administrative violation;
• advertising any gambling outside of licensed betting is punishable by a fine and blocking of resources.

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Legal gambling

Since 2010, only one type of gambling entertainment has been allowed in Azerbaijan - sports betting.

They are regulated through the state platform Topaz, owned by Azerinteltek (a joint venture of the Ministry of Youth and Sports of Azerbaijan and Turkish Inteltek).

Features of the Topaz system:

• accepts sports and esports betting;
• available online and through physical locations in cities across the country;
• licensed by the state;
• pays taxes and contributions to the budget and sports funds;
• the minimum age of a player is 18 years.

Thus, Topaz serves as a national monopolist, similar to the Sportloto or Pari Mutuel systems.

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Online gambling

Online casinos, poker and offshore betting sites in Azerbaijan are outlawed.

Government agencies, including the Ministry of Transport, Communications and High Technology, block access to popular sites (1xBet, Bet365, Stake, Mostbet, GGbet, etc.).

However, in practice:

• users actively use VPN and mirrors;
• deposits are made through cryptocurrency or e-wallets (Skrill, Neteller, Perfect Money);
• the popularity of online gambling is growing among young people and IT people.

According to analysts, the shadow online market in Azerbaijan exceeds $150 million a year, despite the bans.

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Control and responsibility

The fight against illegal gambling is carried out by:

• Ministry of the Interior (MVD);
• State Security Service (GSS);
• Ministry of Digital Development and Transport.

Preventive measures:

• blocking domains and Telegram channels;
• administrative fines up to 5,000 manats (~ $2,900);
• criminal liability for organizing underground casinos (up to 3 years in prison);
• confiscation of equipment and revenues.

In 2024, the Ministry of Internal Affairs of Azerbaijan announced the closure of more than 250 illegal points and blocking over 1800 sites.

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Religious and social aspect

Azerbaijan is a predominantly Muslim country where Islamic values retain significant influence.

Sharia gambling is considered haram - a sinful occupation.

This position is also supported by the state, where religion is harmoniously combined with the policy of "moral stability."

However, Azerbaijani society is gradually becoming more open to the discussion of regulated gambling, especially in the context of the development of tourism and the digital economy.

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Economic aspect

According to official figures, Topaz annually brings about 30 million manats ($18 million) of tax revenues to the budget.

These funds are used to develop sports and youth programs.

Experts note that the potential of the legal gambling market in Azerbaijan with partial liberalization may exceed $500 million per year, including the online segment, licensing and taxes.

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Prospects

Since 2023, the country has been discussing the possibility of creating a tourist gambling zone - most likely in regions focused on foreigners (for example, in Naftalan or Gabala).

Ideas for introducing limited online licensing for foreign platforms under the supervision of the Central Bank are also being considered.

Possible steps:

1. Introduction of gambling zones for tourists;

2. Allowing online gambling under local domains (.az);

3. Control of transactions through banking APIs;

4. Establishment of the State Gambling Agency.

While these initiatives are under discussion, it is obvious that the country is gradually preparing to modernize gambling legislation.

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Azerbaijan is a country of strict prohibition of casinos and online gambling, but with a developed system of legal sports betting.

The state controls the market through the Topaz monopoly, ensuring stable tax revenues and minimizing social risks.

Today, Azerbaijan is a country of strict control, but with a growing digital interest in iGaming, where bans are gradually giving way to the idea of ​ ​ civilized regulation.