According to the Law adopted on July 8, 2025 (“Law”), several significant legislative changes regarding the organization and operation of casino games have been implemented in Azerbaijan. These changes create new opportunities and obligations for legal entities, investors, and companies operating in the tourism sector.
In this blog, we explain the main provisions of these changes and their practical significance.
Definition of Casino Games – A New Legal Term
Under the Law, casino games are defined as including the following:
- Roulette wheel
- Card games
- Gaming tables
- Dice and similar gaming equipment
- Slot machines
Since winning in these games depends on chance and uncertainty, they are organized under a special regulatory framework. The new definition establishes clearer legal grounds for the sector and strengthens oversight of casino operations.
Key Requirements for Organizing a Casino
According to the new legislation, casino operations can only be conducted by legal entities that meet specific requirements.
1. Licensing Requirement
Casino games can only be organized by legal entities with a valid license. The licensee must:
- Meet the “citizen integrity” requirements,
- Comply with all conditions set out in the legislation.
2. Casino Location
Casinos can only be established in artificial land plots within the Caspian Sea area that belongs to the Republic of Azerbaijan.
This activity is under the supervision of the State Tourism Agency. The aim is to develop the tourism sector while maintaining safety and transparency standards.
3. Operator Involvement
A casino organizer can operate either:
- Directly themselves, or
- By engaging a third-party operator under a civil law contract.
In the latter case, the selection of the operator is carried out with consideration of the regulator’s opinion.
State Fee – Cost of a Casino License
According to amendments to the Law on State Fees:
- The state fee for operating a casino is 340,000 AZN.
- An additional 340,000 AZN must be paid each year the license is valid.
This fee is intended to increase sector transparency and ensure that only entities with significant investment potential enter the market.
Significance of the Changes for Business and Tourism
The new legal framework aims to:
- Attract high-yield investments into the tourism industry,
- Develop gaming and entertainment infrastructure along the Caspian Sea,
- Prevent illegal gambling activities,
- Generate additional revenue for the state budget.
These changes create new opportunities for both local and international investors.
