Kyrgyzstan’s casino legalization falls short of revenue expectations

Kyrgyzstan's experiment with legalized gambling has delivered underwhelming financial returns, sparking criticism from lawmakers and raising doubts about the policy’s future, according to local media reports.

The government legalized gambling in 2022, ending a decade-long ban, and restricted participation to foreigners in an effort to boost state revenues. Authorities had projected billions of Kyrgyz Som (KGS) in contributions from casinos, betting shops, and slot machines.  

However, official data shows a modest performance. In 2023, gambling operators contributed just KGS 97 million ($1.1 million) to the state budget. For 2024, revenues are projected to rise to KGS 270 million ($3.1 million), still far below initial expectations.

“There is almost no benefit to the state from casino activity,” said MP Sultanbay Aizhigitov, voicing frustration over the initiative. “It is a business controlled by five or six individuals, and it causes significant harm. The initiative has not justified itself. Do we need casinos at all? Perhaps it’s better to shut them down.”  

Casinos represented the largest portion of revenues, totaling KGS 258 million ($2.8 million), while betting shops contributed KGS 11 million ($125,000) and slot machines generated KGS 1.8 million ($20,500).
 
To maximize revenue, the government has allowed casinos to operate in state-owned buildings and hotels with government stakes. Yet, critics argue that the benefits remain concentrated among a few operators, leaving little impact on public finances.  
 
The law strictly prohibits Kyrgyz nationals from gambling. Those caught face fines, as do the casinos hosting them. The regulation was intended to protect local citizens while attracting foreign players, but the strategy’s effectiveness remains questionable.  

Lawmakers have called for a reassessment of the policy, with some suggesting the re-banning of gambling activities. Proponents argue that the legalization effort requires time to reach its full potential, while detractors highlight the stark gap between promises and outcomes.  

Despite the increase in projected revenues for 2024, the policy has yet to live up to its ambitious goals, leaving its long-term viability uncertain.