Number of companies decreased threefold in Kazakhstan
In Kazakhstan, there is an interesting situation in the gambling sector. Over the past two years, the number of sports betting and gambling companies in land-based or online casinos has dropped dramatically from 93 to 35. A particularly sharp decline occurred last year, when 20 companies closed at once in the gambling zone of the Almaty region, El.kz reports with reference to EnergyProm.
According to the Bureau of National Statistics of the ASPiR of the Republic of Kazakhstan, now only 12 enterprises in the field of gambling are officially operating in the so-called "Kazakh Las Vegas". Such a reduction in companies may affect the tax base, the investment attractiveness of the region and the labor market in the city of Konaev, where casinos and bookmakers played a significant role.
The process of transformation of the gambling business in Kazakhstan began during the pandemic, when many restrictions led to the growth of online services. Leading bookmakers and casino owners who are able to accept bets and organize games online have become leaders in the industry and have significantly increased the volume of services provided and, consequently, tax deductions.
In 2022, the volume of services in the gambling business increased from 13.6 billion to 572.1 billion tenge, while bookmakers increased this figure by 14.1%. However, this year the industry has faced some decline. From January to March 2023, betting enterprises provided services worth 102.4 billion tenge, which is 26.6% less than in the same period last year.
In addition, the Ministry of Culture and Sports of the Republic of Kazakhstan has revoked the licenses of five companies and is in court with four other bookmakers. The country is also discussing a proposal to ban advertising of bookmakers and casinos, which could reduce the market's audience. The head of the Ministry of Culture and Sports supports this idea and proposes to advertise bookmakers only at sporting events and their office buildings.
Another negative trend was the increase in the share of foreign companies in the market. If in 2017 the share of organizations with foreign ownership was 12.7%, then in 2022 it increased to 39.5%. This could lead to a loss of control by Kazakhstan over these companies, which will aggravate the situation.
The largest share in the gambling industry is made up of online gambling, which occupies more than half of all cash turnover. Land-based casinos in Kazakhstan are actively losing popularity. Despite the reduction of companies and the growth of tax deductions of the largest participants, the largest participants in the gambling industry, the question arises about the future of this sphere in Kazakhstan. The gradual reduction in the number of companies and the increase in the share of foreign players in the market cast doubt on the future prospects of the industry in the country.
Restrictions on advertising bookmakers and casinos, proposed by deputies, may also affect the market. The authorities seek to control the gambling industry and reduce its negative impact on society, but such measures can also lead to users switching to foreign gaming platforms, which will reduce the income of national companies and reduce tax deductions to the country's budget.
In addition, the COVID-19 pandemic has also had an impact on the gambling industry. Restrictions and quarantine measures have led to the transition of many companies to online, which contributed to the growth of services in this area. However, with the gradual lifting of restrictions and a return to normal life, the growth of services has decreased, which may be another factor influencing the decline in activity in the gambling industry.
The number of companies has decreased three times: the gambling business in the Republic of Kazakhstan has gone online
At the moment, the situation in the gambling sector of Kazakhstan remains uncertain. The country's authorities are actively discussing various measures to regulate this industry and balance between control and support for business development. The future of the gambling business in the country depends on the decisions made and adaptation to new realities.
Competition from foreign companies also poses a challenge for local entrepreneurs, demanding innovation and improving the quality of services. Whatever the future of the gambling industry in Kazakhstan, it is important that it operates in accordance with the law, ensuring the safety of players and a controlled environment for gambling entertainment
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