Kazakhstan is one of the largest countries of the former Soviet Union and one of the region's more developed gambling markets. Casinos, slot machines and betting are legal, but only under strict conditions, and online casinos remain banned. If you are looking at the country as a potential market, these are the rules and quirks to understand first.
What the law allows
Gambling became legal and regulated in January 2007, when the President signed the law on the gambling business. Two gambling zones then opened:
- North: in the Shchuchinsk area of Akmola region;
- South: on the shore of the Kapchagay reservoir in Almaty region.
A draft law prepared in October 2017 proposed a third zone in Mangystau region and at the Khorgos International Centre for Boundary Cooperation. At that time the two operating zones were home to 13 licensed land-based casinos.
Slot machines, betting and bookmaker offices are legal. Online casinos are banned.
The online definition problem
Much of the legislation can be read in more than one way. The law defines an online casino as a gambling establishment that uses a hardware and software complex located in Kazakhstan, and some operators argue that sites hosted abroad fall outside that definition. That argument describes a grey area, not a licence: it carries real legal risk, and there is still no licensed route for online casinos.
How local operators work
Since legalisation, operators have faced a choice between working strictly within the law or running offshore-hosted sites that rely on its contradictions. Market participants also point to a paradox: opening a casino is legal, yet much of the land-based sector already belongs to foreign investors, many of them Russian, which leaves little space for newcomers.
Who plays and how
Kazakh players fall broadly into two groups:
- affluent, middle-aged high rollers who come to land-based casinos for the thrill;
- players with smaller budgets who prefer to play online, typically on foreign sites.
Poker is especially popular. From 4 to 15 October 2017, Borovoe hosted the Eurasian Poker Tour with a confirmed $850,000 in prize money, at the time the largest guarantee for a poker series in Kazakhstan's history.
Distinctive features of the market
- Strict premises rules. Bookmaker offices and totalisators may only operate in non-residential buildings. Non-residential parts of residential buildings, industrial premises, warehouses and municipal premises are off-limits, which makes a suitable location hard to find.
- Local hardware. The hardware and software complex must be located in Kazakhstan, or no licence is issued.
- Financial monitoring. Transactions above ₸3,000,000 must be reported to the financial monitoring authority.
- Foreign ownership. Most casinos have been bought up by foreign investors.
- Lotteries. Lotteries are hugely popular. Until a 2016 law regulated them, almost anyone could profit from running one, and lottery terminals were often converted into illegal slot machines. Since then lottery operators have been licensed and barred from running other types of business.
- Stable zones. Kazakhstan has never moved its gambling zones, which lets investors commit capital with confidence. Elsewhere zones have been closed or relocated, as happened to Russia's Azov-City.
- Accessible locations. Unlike the remote zones of some countries, Kazakhstan's are within reach of Almaty and Astana, so their casinos draw steady crowds.
Market prospects
Gambling brings a substantial sum into the state budget every year, and the government has shown no wish to give that up. A third gambling zone has long been on the agenda, and the Caspian coast around Kenderli has attracted investor interest, including from Iranian companies drawn by the short flight from Iran. Low licence costs and a consistently high number of players add to the appeal for investors from around the world.
Online demand is strong as well. Because online casinos remain outside the law, many players search for trustworthy sites abroad, which keeps the debate about regulating online gambling alive.
Has anything changed?
By May 2021, according to the country's culture and sports ministry, more than 200 bookmakers held gambling licences and thousands of betting shops were operating, yet online casinos were still illegal. Kazakh players continued to register on foreign platforms, where deposits and withdrawals worked without difficulty.
Experts broadly agreed that the market needed to leave the grey zone, and they pointed to very different models:
- the United States, where banks are barred from processing gambling-related transactions;
- Singapore, which penalises players as well as organisers;
- China, which relies on large-scale internet filtering through the Great Firewall.
Law No. 356-VI of 2 July 2020 raised hopes, but its final version only amended existing acts and introduced no new regulatory model. The core framework is still the 2007 law, which contains more restrictions than permissions. Supporters of reform have pointed to Ukraine's decision to legalise online gambling as an example of liberalisation rather than harsher penalties.
The rules in the region continue to evolve, so check the current legal position before any market-entry decision. If you are comparing jurisdictions that do offer an online licence, our licensing service can help you weigh the options.
Written and reviewed by the iGaming Software Solutions Editorial Team.