In a pivotal legislative session on March 5, 2025, the Armenian National Assembly’s Standing Committee on Economic Affairs convened an extraordinary meeting to discuss pivotal tax reforms targeting the gambling industry. The meeting, chaired by Deputy Babken Tunyan, marked a critical second reading of proposals crafted by MP Hayk Sargsyan, which aim to overhaul the financial obligations of gambling operators within the nation.

Immediate implementation of new duties:

The reform initiative emerged from extensive deliberations involving key government stakeholders, including Prime Minister Nikol Pashinyan. The revised proposal shifts from a turnover tax to a duty on gambling operations. Specifically, it proposes to double the duty on betting purchases—from 0.1% to 0.2% for lotteries and from 0.175% to 0.35% for online winning games. This adjustment is intended to be implemented immediately, bypassing the initial six-month delay, reflecting a proactive approach to enhancing state revenue through the gaming sector.

MP Hayk Sargsyan, during the committee session, highlighted the financial implications of the amendments. By replacing the turnover tax with a direct duty, the projected monthly revenue increase is estimated at $2.7 million. As published on the regulator’s official website parliament.am, Sargsyan emphasized the urgency of this reform, stating, “I don’t want us to lose these revenues and for this regulation to come into force 6 months late.”

Further discussions in parliament revealed the broader scope of the legislative changes, which were initially discussed on February 5 under intense circumstances. The first reading of the bill proposed a 10% profit tax specifically targeting the gambling sector’s booming turnover, which escalated from $35 million in 2010 to a staggering $15.8 billion by 2023, with tax contributions lagging significantly at only 0.4% of the total turnover.

The proposed legislation, having passed its first hurdle with 64 votes in favor, two against, and 19 abstentions, aims to rectify this imbalance by potentially raising an additional 13 billion drams ($33 million) annually. This substantial increase in state duties is set to continue escalating annually until the establishment of a national monitoring center, a strategic move to strengthen regulatory oversight over the gambling industry.

Addressing social impacts and future regulations:

During the parliamentary debates, MP Sargsyan and his colleagues from the Civil Contract party also addressed the social implications of gambling, including its linkage to increasing suicide rates within the military, citing that more than half of the suicides in 2024 were gambling-related. This alarming statistic underscores the urgency for comprehensive regulatory reform and the establishment of a more robust framework to curb gambling-related harm.

The legislative package also includes plans to introduce a gaming sector monitoring center and the appointment of a dedicated gaming regulator by the year’s end. This initiative aims to restrict gambling access among vulnerable social groups and civil servants, ensuring a more controlled and ethical gambling environment.

As the bill progresses toward its final approval, the discussions and outcomes of these legislative sessions highlight a decisive shift toward more stringent and equitable gambling regulations in Armenia, reflecting a commitment to both fiscal responsibility and social welfare.