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Sovereign state
Asia
ISO AZ

Azerbaijan: gambling regulation and licensing

  • Online sports bettingMonopoly
  • Online casinoProhibited
  • Online pokerProhibited
  • Lottery and iLotteryMonopoly
  • Horse race bettingMonopoly
  • Land-based (reference)Pre-regulation
Regulator
Ministry of Economy of the Republic of Azerbaijan
Headline tax
6% of stakes
Licence required
Yes
Last verified
23 Sept 2026

Summary

Azerbaijan prohibits commercial gambling except through three state-controlled channels. Lotteries, including electronic and virtual lotteries played online, may be organised only by the body the Government designates, Azerlotereya OJSC, which the state placed under a management contract with YMT Sans B.V., part of Türkiye's Demirören group, in 2021. Sports betting, including online betting and betting on horse and greyhound races, is run by that state body and by operators accredited before 1 December 2021; in 2022 the Ministry of Economy named Azerlotereya and Caspiantech (the TOPAZ brand) as the operators. The Ministry of Economy supervises lotteries and sports betting. Since 29 July 2025 casino games can be licensed, but only on artificial land areas in the Azerbaijani sector of the Caspian Sea: the State Tourism Agency issues the licence, the state duty is AZN 340,000 plus AZN 340,000 a year, players must be 21 and online casino games are banned. Online casino and poker remain illegal. Organising gambling is a crime under Criminal Code art. 244-1, and since July 2026 doing it online carries two to four years and a fine of up to twice the proceeds. Playing is an administrative offence punished by a AZN 3,000 fine, and a repeat within a year by AZN 5,000 or up to 15 days of arrest. Internet content inciting gambling can be blocked and financial institutions that process gambling payments are fined. The lottery organiser and betting operators pay a 6% simplified tax on ticket sales instead of VAT and profit tax, and players pay 10% on cash winnings net of the stake, with winnings up to AZN 500 exempt.

Common pitfalls

Reading the 2025 casino law as legalising online casinos: it confines casino games to licensed premises on artificial land areas and bans them in virtual form. Treating virtual lotteries and simulated sports as unregulated: they are lotteries reserved to the state organiser. Assuming sports betting is open to new entrants: accreditation closed on 1 December 2021. The list of betting operators rests on a 2022 Ministry of Economy statement; no public register was found.

Key facts

Regulator
Ministry of Economy of the Republic of Azerbaijan
Regulator type
Government ministry
Headline tax
6% of stakes
Licence required
Yes
Minimum age
18+
Tax base
Simplified tax at 6% of the amounts received from selling lottery tickets or sports betting tickets (gross stakes), paid by the lottery organiser and the sports betting operator; their sellers pay 4% of the fee the organiser or operator pays them (Tax Code arts. 218.4.2, 219.4, 219.4-1, 220.9 and 220.9-1). No specific tax on casino revenue was found in the Tax Code.

How to get a gambling licence in Azerbaijan

Online sports betting in Azerbaijan is a state monopoly: only a single state-owned or designated operator is permitted.

The regulator is the Ministry of Economy of the Republic of Azerbaijan.

We record 3 licence types for Azerbaijan.

For the Licence for casino games on artificial land areas in the Caspian Sea, the application fee is AZN 340,000 (as of 29 Jul 2025) and the annual fee is AZN 340,000 (as of 29 Jul 2025).

Applications
Closed at present
Headline tax
6% of stakes (see Taxation for the full position)

Licence fees in Azerbaijan

Licence typeApplication feeAnnual feeTerm
Licence for casino games on artificial land areas in the Caspian SeaState duty of AZN 340,000 on issue plus AZN 340,000 for each year the licence is in force, paid before each anniversary of the licence (Law on State Duty arts. 22.0.42 and 23.2-1).AZN 340,000 (as of 29 Jul 2025)AZN 340,000 (as of 29 Jul 2025)Not yet verified

Built from the record on this page, last verified 23 Sept 2026. The Licensing and Taxation sections carry the full detail and sources.

Licensing

Licence required
Yes
Application window
Closed
Local establishment required
Not yet verified
Local server required
Not yet verified
Notable licensees
Azerlotereya OJSC (lotteries and sports betting), Caspiantech CJSC, TOPAZ brand (sports betting, named by the Ministry of Economy in 2022)
Barriers to entry
There is no licensing route for online gambling. Lotteries are reserved to the organiser the Government designates and sports betting to that body and operators accredited before 1 December 2021. Casino licences are limited to premises on artificial land areas, subject to an opinion on the fitness of owners and managers under the AML law, and casino games may not be offered online.

Licence types

  • Licence for casino games on artificial land areas in the Caspian Sea

    Scope
    Land-based casino games (roulette, cards, table games, dice and slot machines) at approved premises on artificial land areas only; no online play
    Application fee
    AZN 340,000 as of 29 Jul 2025
    Annual fee
    AZN 340,000 as of 29 Jul 2025
    Fee basis
    State duty of AZN 340,000 on issue plus AZN 340,000 for each year the licence is in force, paid before each anniversary of the licence (Law on State Duty arts. 22.0.42 and 23.2-1).
    Renewal terms
    The licence has no legal effect until a licence contract is signed; breach of the casino rules or the licence contract is a ground for suspension or revocation.

  • Sports betting operator accreditation

    Scope
    Sports betting, including online, through a central betting system
    Term
    10 years
    Fee basis
    No accreditation fee located. The AZN 5 million bank guarantee once required by Decision 153, para. 2.5, was repealed by Cabinet Decision 40 of 6 February 2019.
    Renewal terms
    Closed: the law recognises only operators accredited before 1 December 2021 alongside the state-designated body.

  • Lottery registration

    Scope
    Each lottery run by the designated lottery organiser, including electronic and virtual lotteries
    Fee basis
    No licence: each lottery is registered with the authorised body at least 10 working days before the first draw, with a decision within 7 working days.

Taxation

Headline GGR tax
Not yet verified
Effective date
Not yet verified
Turnover tax
6%
Player winnings tax
Cash winnings from sports betting and lotteries are taxed at 10% on the amount left after deducting the stake (Tax Code art. 101.5); cash winnings of up to AZN 500 from the lottery organiser or a sports betting operator are exempt (art. 102.1.26).
Withholding mechanism
The person paying the winnings withholds the tax at source (Tax Code art. 150.1.10).
VAT treatment
Simplified tax payers are not VAT, profit tax or property tax payers (Tax Code art. 219.5). Electronically organised lotteries, virtual lotteries and sports betting are services supplied where the buyer is (art. 168.1.5).
Tax base
Simplified tax at 6% of the amounts received from selling lottery tickets or sports betting tickets (gross stakes), paid by the lottery organiser and the sports betting operator; their sellers pay 4% of the fee the organiser or operator pays them (Tax Code arts. 218.4.2, 219.4, 219.4-1, 220.9 and 220.9-1). No specific tax on casino revenue was found in the Tax Code.

Earmarked levies

  • Share of sports betting stakes for sport and social projects (Development of physical education and sport and socially significant projects, in the share set by the Government)

Compliance

Minimum age
18+
National self-exclusion
Not yet verified
AML regime
The lottery organiser and sports betting operators must apply the measures of the Law on Targeted Financial Sanctions (Law on Lotteries art. 10.3; Law on Physical Education and Sports art. 53-1.8). Casino organisers and operators are obliged entities under the Law on Combating the Legalisation of Criminally Obtained Property and the Financing of Terrorism, with due diligence triggered by transactions of AZN 3,000 or more; chip and token play inside the casino is not a financial transaction.
Source of funds thresholds
Stakes and winnings above AZN 3,000 in lotteries and sports betting must be paid non-cash (Law on Lotteries art. 6.10; Law on Physical Education and Sports art. 54.2). Casino due diligence applies to transactions of AZN 3,000 or more.
Central monitoring system
Every contact between sports bettors and the operator runs through the operator's central betting system (Law on Physical Education and Sports art. 53-1.6), and sales data are fed daily to the state information system (Tax Code art. 16.1.11-12).
KYC requirements
Electronic and virtual lotteries must run through personal data information systems registered with the state (Law on Lotteries art. 8-2.1). Minors may not take part in sports betting, directly or indirectly (Law on Physical Education and Sports art. 53-1.9). Casino organisers must apply customer due diligence so that each financial transaction in the casino can be linked to the customer (AML Law art. 4.9-1 as added by Law 240-VIIQD).
Stake limits
Not yet verified
Reporting obligations
The lottery organiser reports to the authorised body on each lottery (Law on Lotteries art. 10.1.7) and publishes draw results within 5 working days (art. 10.1.3). The lottery organiser and sports betting operators transmit ticket sales and sellers' fees daily from their information and central betting systems to the state information system (Tax Code art. 16.1.11-12). Betting operators must report suspected match fixing to the Government body, the financial markets supervisor and the prosecutor.
Game content restrictions
Draw and electronic lotteries must pay out at least 50% of ticket sales as prizes, and instant lotteries between 50% and 80% (Law on Lotteries arts. 6.3 and 6.5). Casino games may not be offered in virtual form (Law on artificial land areas art. 8-2.3).

Minimum age by vertical

  • Online sports betting: 18+
  • Lottery and iLottery: 18+
  • Land-based (reference): 21+

Advertising

Advertising permitted
Yes
Affiliate rules
No affiliate regime. Advertising gambling other than lawful lotteries, sports betting and licensed casinos, or its operators and sellers, is banned (Law on Advertising art. 32.7).

Restrictions

  • Only the designated lottery organiser, sports betting operators and licensed casino organisers may commission lottery, betting and casino advertising (Law on Advertising arts. 32.1 and 32.1-1).
  • Advertising of any other gambling, gambling operators or sellers, and of suspended, cancelled or banned lotteries and betting, is prohibited (art. 32.7; Law on Lotteries art. 8.11).
  • Adverts may not address minors, present playing as a way to gain social standing, guarantee winnings, give information on a side's improved chances of winning, or disparage people who do not play (art. 32.5).
  • Outdoor adverts must be at least 100 metres from children's and educational institutions (art. 32.6).
  • A winner's name may be used only with written consent (art. 32.4).
  • Information inciting people to organise or join gambling or other illegal betting is banned from distribution, other than information on lawful lotteries, sports betting and licensed casino games (Law on Information art. 13-2.3.7).

Payments

Credit card ban
Not yet verified
Crypto stance
Not yet verified
Payment blocking regime
Financial institutions that execute customers' payment orders or other bank or payment account operations for gambling are fined AZN 40,000 as legal entities (Code of Administrative Offences art. 401.4, widened to all financial institutions by Law 240-VIIQD). Financial institutions may not process payments for casino games in virtual form (Law on artificial land areas art. 8-2.3).
Withdrawal timeframe rules
Lottery prizes must be paid within 30 working days of the winning ticket being accepted (Law on Lotteries art. 6.9).
Currency restrictions
Winnings and stakes above AZN 3,000 in lotteries and sports betting must be settled non-cash under the Law on Non-Cash Settlements (Law on Lotteries art. 6.10; Law on Physical Education and Sports art. 54.2).

Enforcement

ISP blocking
Yes
DNS blocking
Not yet verified
Payment blocking
Yes
App store takedowns
Not yet verified
Administrative penalties
Giving access to gambling from Azerbaijan, selling gambling tickets, taking bets or processing gambling payments: AZN 3,000 for individuals, AZN 7,000 for officials and AZN 40,000 for legal entities (Code of Administrative Offences art. 401). Breaches by the lottery organiser or a betting operator: AZN 8,000 to 9,000 for legal entities (art. 429.0.3 and 429.0.4); a betting seller allowing minors to bet: AZN 1,000 (art. 429.0.5).
Criminal penalties
Organising or conducting gambling, or keeping premises for it: a fine of AZN 5,000 to 10,000 or up to two years of restriction or deprivation of liberty. Online, repeat, with minors, by a group or with proceeds above AZN 50,000: two to four years and a fine of up to twice the proceeds; organised group or proceeds above AZN 200,000: three to five years; proceeds above AZN 500,000: five to eight years (Criminal Code art. 244-1).
Operator liability
Organisers of illegal gambling, including online operators serving players in Azerbaijan, are criminally liable under Criminal Code art. 244-1; those providing access, selling tickets, taking bets or processing payments face administrative fines under art. 401 of the Code of Administrative Offences. Internet resources carrying information that incites gambling can be restricted by a temporary executive decision and placed on the list of blocked resources after a court decision (Law on Information arts. 13-2.3.7 and 13-3).
Player liability
Taking part in gambling is an administrative offence: AZN 3,000 with confiscation of stakes and winnings, and for a repeat within one year AZN 5,000 or up to 15 days of administrative arrest (Code of Administrative Offences art. 525).

Notable actions

  • Organised group run from Georgia that organised illegal online casino and betting games involving Azerbaijani citizens19 Aug 2026

    Ministry of Internal Affairs cyber police, with Georgian law enforcement, detained the group's leader in Georgia and brought him to Azerbaijan; group members were charged and two were remanded in custody.

Timeline

  1. 3 Apr 1998

    Law on Information adopted; later amended to ban information inciting gambling and to allow blocking

  2. 5 Mar 2004

    Law on Lotteries adopted

  3. 30 Jun 2009

    Law on Physical Education and Sports adopted

  4. 31 May 2010

    Sports betting article 53-1 added to the Law on Physical Education and Sports

  5. 20 Aug 2010

    Cabinet approves the accreditation and sports betting rules (Decision 153)

  6. 16 Jan 2021

    President orders Azerlotereya placed under management by YMT Sans B.V.

  7. 1 Mar 2021

    Ministry of Economy signs the Azerlotereya management contract with YMT Sans B.V.

  8. 27 Dec 2021

    Gambling offences, sports betting accreditation and gambling taxation recast by a package of laws

  9. 29 Jul 2025

    Law 240-VIIQD in force: licensed casinos allowed on artificial land areas; State Tourism Agency made licensing body

  10. 23 Feb 2026

    Cabinet approves the casino licence form (Decision 46)

  11. 30 Jul 2026

    Law 442-VIIQD published: higher criminal penalties for gambling, including online

  12. 2 Sept 2026

    Law 462-VIIQD published: repeat participation in gambling punishable by AZN 5,000 or administrative arrest

Outlook

The Cabinet of Ministers ordered in August 2025 that casino premises requirements, licence conditions, game rules and supervision rules be drafted; only the licence form had been adopted by September 2026, so the first casino licences and licence contracts are the next step to watch. The tougher criminal penalties of July 2026 and the new penalty for repeat play in force from September 2026 apply to offshore online gambling.

Frequently asked questions

Is online gambling legal in Azerbaijan?
Only lotteries and sports betting. Lotteries, including online and virtual lotteries, are run solely by the state organiser Azerlotereya, and sports betting by that body and operators accredited before 1 December 2021. Online casino and poker are illegal, and organising gambling online is a crime under Criminal Code art. 244-1.
Who regulates gambling in Azerbaijan?
The Ministry of Economy supervises lotteries and sports betting. The State Tourism Agency licenses and supervises casino games on artificial land areas in the Caspian Sea.
Can casinos open in Azerbaijan?
Only on artificial land areas in the Caspian Sea under a State Tourism Agency licence, since 29 July 2025. The state duty is AZN 340,000 on issue plus AZN 340,000 a year, players must be 21, and casino games may not be offered online. The licence form was approved in February 2026; the other implementing rules had not been found by September 2026.
Can players be penalised for gambling with unlicensed sites?
Yes. Taking part in gambling is an administrative offence punished by a AZN 3,000 fine with confiscation of stakes and winnings, and a repeat within one year by AZN 5,000 or up to 15 days of administrative arrest.
How are lotteries and sports betting taxed?
The lottery organiser and betting operators pay a simplified tax of 6% of ticket sales instead of VAT and profit tax, and their sellers 4% of their fees. Players pay 10% on cash winnings net of the stake, withheld at source, with winnings up to AZN 500 exempt.
Can foreign operators advertise in Azerbaijan?
No. Only the state lottery organiser, sports betting operators and licensed casino organisers may advertise; advertising any other gambling, its operators or sellers is banned, and online content inciting gambling can be blocked.
How much does a gambling licence cost in Azerbaijan?
For the Licence for casino games on artificial land areas in the Caspian Sea, the application fee is AZN 340,000 (as of 29 Jul 2025) and the annual fee is AZN 340,000 (as of 29 Jul 2025). The Licensing section lists all 3 licence types recorded for Azerbaijan. Last verified 23 Sept 2026.

Glossary and directory

Sources

Source tiers. Tier 1: the law, official gazette, licence register or regulator itself. Tier 2: other official sources such as ministries, parliaments, courts and statistics agencies. Tier 3: established trade press, used to find and date the primary source. Only tier 1 and tier 2 sources can support a fact on their own.

  1. Law 594-IIQ of 5 March 2004 on Lotteries, consolidated text (last amended by Law 119-VIIQD of 29 December 2024)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 5 Mar 2004
  2. Law 847-IIIQ of 30 June 2009 on Physical Education and Sports, consolidated text to Law 376-VIIQD of 3 March 2026 (arts. 1, 13, 53-1 and 54)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 30 Jun 2009
  3. Cabinet of Ministers Decision 153 of 20 August 2010 approving the Rules for accrediting a legal entity to run sports betting and the Rules for organising sports betting

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 20 Aug 2010
  4. Criminal Code of the Republic of Azerbaijan, consolidated text, art. 244-1 (as amended by Law 240-VIIQD of 8 July 2025 and Law 442-VIIQD of 10 July 2026)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026
  5. Code of Administrative Offences of the Republic of Azerbaijan, consolidated text, arts. 401, 429 and 525 (as amended by Law 462-VIIQD of 14 July 2026)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026
  6. Tax Code of the Republic of Azerbaijan, consolidated text (arts. 16.1.11-12, 101.5, 102.1.26, 150.1.10, 168.1.5, 218.4.2, 219, 220.9 and 220.9-1)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026
  7. Law 1281-IVQ of 15 May 2015 on Advertising, consolidated text, art. 32

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 15 May 2015
  8. Law 460-IQ of 3 April 1998 on Information, Informatisation and Protection of Information, consolidated text, arts. 13-2.3.7 and 13-3

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 3 Apr 1998
  9. Law 240-VIIQD of 8 July 2025 amending the Civil, Criminal and Administrative Offences Codes and eight laws, including the Law on artificial land areas in the Caspian Sea (casino games)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 29 Jul 2025
  10. Presidential Decree 456 of 29 July 2025 on the application of Law 240-VIIQD (State Tourism Agency as casino licensing and supervisory body)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 29 Jul 2025
  11. Cabinet of Ministers Order 488s of 2 August 2025 on implementing Presidential Decree 456 (casino rules to be drafted)

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 2 Aug 2025
  12. Cabinet of Ministers Decision 46 of 23 February 2026 amending Cabinet decisions for Presidential Decree 456, including the casino licence form

    E-Qanun, Unified Electronic Database of Legal Acts (Ministry of Justice of the Republic of Azerbaijan) (translated)

    Tier 1Accessed 23 Sept 2026Published 23 Feb 2026
  13. Statute of the Ministry of Economy (Presidential Decree 911 of 30 December 2019, as amended), paras. 1.1, 2.0.22-1 and 3.0.53-1

    Ministry of Economy of the Republic of Azerbaijan (translated)

    Tier 1Accessed 23 Sept 2026
  14. Lotteries must be organised in accordance with the law (supervision of lotteries and sports betting, named operators)

    Ministry of Economy of the Republic of Azerbaijan (translated)

    Tier 1Accessed 23 Sept 2026Published 5 May 2022
  15. Presidential Order of 16 January 2021 on placing Azerlotereya OJSC under management by contract

    Official website of the President of the Republic of Azerbaijan (translated)

    Tier 1Accessed 23 Sept 2026Published 16 Jan 2021
  16. Contract signed on transferring Azerlotereya to management

    State Tax Service under the Ministry of Economy of the Republic of Azerbaijan (translated)

    Tier 2Accessed 23 Sept 2026Published 1 Mar 2021
  17. Leader of an online casino network run from abroad detained in Georgia and brought to Azerbaijan (report of the Ministry of Internal Affairs press service)

    APA Information Agency (translated)

    Trade-level news report relaying a statement by the Ministry of Internal Affairs press service; the ministry site police.gov.az did not load from this machine on 2026-09-23. Used only for the enforcement example.

    Tier 3Accessed 23 Sept 2026Published 19 Aug 2026

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This page is industry reference information and not legal advice.

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