Casinos in Azerbaijan set to be legalised
Legislation proposes allowing casinos in on artificial land in the Caspian Sea.
Azerbaijan.- Casinos in Azerbaijan look set to be legalised again, reversing a ban introduced in the South Caucasus nation over 25 years ago. The proposed legislation contained in articles 22.0.42 and 23.2-1 of the Law on State Fees would specifically allow casinos on artificial islands in the Caspian Sea.
According to draft amendments reviewed by parliament on June 18, operators seeking to establish casinos would be charged an annual licence fee of AZN340,000 (around €175,000).
Local media has suggested that the timing would benefit the plans of singer and businessman Emin Agalarov, the former son-in-law of President Ilham Aliyev. Agalarov has expressed interest in opening a casino at his Sea Breeze resort in the Nardarani settlement on the Absheron Peninsula.
Supporters of casino legislation have stressed the potential economic benefits, pointing to revenue generated by gambling in neighbouring countries. MP Vugar Bayramov, a member of the Economic Policy, Industry and Entrepreneurship Committee, highlighted that the global casino industry is projected to generate $745bn a year by 2028.
“Although Georgia is smaller than Azerbaijan in territory and population, it leads in tourism revenues,” Bayramov told Report news agency. “A significant portion of Georgian casino revenues comes from foreign clients, including tourists from Azerbaijan.”
On the other side of the Caspian Sea, Kazakhstan already has a gambling industry, and regulated gambling in Uzbekistan will launch this year, ending a ban on gambling imposed by the then president Islam Karimov in 2007. Meanwhile, the United Arab Emirates is on track to introduce integrated resorts.
However, the move is not without controversy. Although Azerbaijan has a largely secular outlook for a majority muslim country, there is conservative religious opposition to gambling. Meanwhile, social organisations hvae concerns about gambling harm, indebtedness and money laundering.
Casinos in Azerbaijan have a difficult history. The country’s first casino, the Admiral Eka, opened in the Absheron Hotel (now JW Marriott Absheron) in central Baku back in January 1991 and within a few years, there were around ten legal casinos. However, the industry’s reputation was harmed by connection to controversy involving Turkish businessman Ömer Lütfi Topal’s Emperyal Tourism, and Aliyev issued a ban in 1998. The decree stated that casinos were “contrary to national morality”.
Currently, the Turkish company Demirören Holding has a licence to operate a lottery and sports betting in Azerbaijan under a 10-year contract signed in 2021, but there is no casino gambling. There have been several previous attempts to reintroduce casinos in Azerbaijan. Businessman Ibrahim Nehramli made an attempt back in 2016 but faced opposition. He had tried to argue that casinos were cultural institutions. It seems that ten years later, Aliyev may have had a change of heart.
Re-legislation would require amendments to several laws, including the criminal code and administrative offence regulations. The draft Law on Licenses and Permits would expand the list of activities requiring licenses due to state security considerations.
