Armenian government increases bail out for Shangri La Casino
The government will reportedly cover US$13.8m in tax duties incurred after the casino licence was withdrawn.
Armenia.- The Armenian investigative news site Hetq has reported that the country’s government has bailed out businessman Gagik Tsarukyan’s Shangri La casino, covering 5.6 billion drams (US$13.8m) in tax duties. That would be an increase on the previous bailout announced last month.
The funds will pay the casino’s taxes after the government pulled its licence in July 2020. The casino in Yerevan was closed in March 2020 along with all casinos and nightclubs due to the Covid-19 pandemic. At that time, Tsarukyan had reportedly argued that the government should cover the casino’s taxes and the salaries of the employees that the casino laid off.
Three months later, Tsarukyan made comments calling for the Armenian government to be replaced. A week later police searched his home, and in July 2020, the Shangri La casino’s licence was withdrawn due to alleged “illegal commercial activity” uncovered by Armenia’s National Security Service (NSS).
However, Tsarukyan appealed against the government’s decision and won, with the court overturning the licence withdrawal. Armenian PM Nikol Pashinyan reportedly agreed with the bailout, saying that the state must now compensate the casino for the downtime it experienced as a result of the licence withdrawal.
In May, the Armenian government introduced a ban on the use of cash for gambling. The law prohibits the use of cash for betting and gaming, extending that to cover the use of electronic cash and payment terminals after six months. From that point, gambling payments will only be permitted using card. Winnings must also be paid out electronically via bank transfer.
Uzbekistan gambling legalisation in doubt
Shavkat Mirziyoyev, the president of Uzbekistan, has reportedly rowed back on supporting a decree that would create a national framework for legalised betting in the country. Local media reported earlier this year that he no longer backs the move to establish federal legislation for sportsbooks and sweepstakes.
Mirziyoyev, who leads the O’ZLIDEP party, had said back in 2019 that he would support a party promise to legalise sports betting under strict government controls after consultation with Muslim leaders. The idea was to launch the market this year and for tax revenues from the sector to fund the advancement of the professional football league in Uzbekistan in a bid to qualify for a World Cup for the first time.
