Armenia introduces new payment controls in bid to tackle unlicensed gambling
Local banks have been told to reject Merchant Category Code 7995 transactions.
Armenia.- The Republic of Armenia is pressing ahead with its overhaul of its gambling sector. Prime Minister Nikol Pashinyan’s administration has confirmed the introduction of a new compliance framework for licence holders, while new measures seek to tackle unlicensed operations.
Authorities plan to block transfers to unlicensed platforms, with technical directives instructing local banks to reject Merchant Category Code (MCC) 7995 transactions, the global classification for gambling, unless they originate from licensed Armenian operators.
The overhaul also imposes tighter anti-money laundering and know-your-customer requirements on licensed firms. Finance Minister Vahe Hovhannisyan and State Revenue Committee head Rustam Badasyan will oversee the rollout of the reforms.
Meanwhile, a centralised monitoring system is also being advanced to link operators directly to state infrastructure in real time. The aim is to give regulators full visibility over gambling activity and payment flows similar to what Ukraine’s gambling regulator PlayCity is rolling out with its DSOM state monitoring system. The State Revenue Committee is fast-tracking the appointment of a private software partner to build the monitoring hub, following legislation passed in early 2024.
The Ministry of Finance is also currently laying the groundwork for the creation of a dedicated gambling regulator, with more details expected soon.
The regulatory updates follow the recent introduction of new player protection measures, including mandated stop‑play tools and the restriction of access for people in bankruptcy and social assistance recipients.
These changes followed a rise in online gambling licence fees in Armenia a year ago and the introduction of a new 10 per cent turnover tax for gambling operators last July. Fees are to increase further through 2028. The Gaming Law, introduced at the start of last year, required operators to use Armenia’s local domain system and introduced geo-blocking and adjusted winnings taxes. Advertising has been limited to luxury hotels, border checkpoints and authorised operator channels.
