Gaming generates us$ 9 million in tax revenues

Casinos banned in Kyrgyzstan from 2012

2011-10-07
Reading time 1:52 min
(Kyrgyzstan).- Kyrgyz parliament outlawed casinos and slot machine facilities. Bill to ban gambling in the territory of the republic was adopted September 29 at once in three readings. The ban on gambling establishments will come into force on January 1, 2012.

The bill was supported by 105 MPs, with one vote against the measure and one abstention. The document is now to be signed by the interim president of Kyrgyzstan Roza Otunbayeva. The initiative to ban casinos in Kyrgyzstan was put forward earlier by MP representing Ar-Namys (Dignity) opposition party Bakytbek Dzhetigenov.

Criticism of gambling business was endorsed by Otunbayeva in her video address. The head of the republic stressed that casinos had a "detrimental effect on the entire society." However, she acknowledged that the ban on gambling establishments will not eliminate them but rather force them to go underground (in this regard, she stated that it would be enough to tighten the rules for their operation). In closing, Otunbayeva urged citizens to unite against "casino barons".

Other suggestions were also expressed in discussing the bill to ban casinos (for example, to relocate gambling establishments to a certain zone). In turn, the representative of the Ministry of Finance, speaking to MPs, noted that the casinos and slot machines generate about us$ 9 million in tax revenues. The official stressed that implementation of the ban on gambling establishments will result in increased funding requirements for the state budget. According to official data, there are 21 casinos and about 3000 slot machine facilities operating in Kyrgyzstan.

On the morning of September 29, before the vote on the bill, casino employees gathered for a rally outside the parliament building. Protesters stated that the deputies were deliberately trying to drive gambling business underground. "And then the very same MPs, who gamble in the casinos, will provide “protection services”. And all the money that now goes to the state treasury will flow to their pockets", – said a member of the Gambling Business Association Myrza Niyazov

Lyubov Loginova, Chairman of the Board of Alsart Group, gives her opinion on the matter: “Actually, by banning gambling business Kyrgyzstan is following the same model that has already been implemented in Russia and Ukraine, despite the disappointing outcome of this step. Fully aware that a total ban will lead to a decrease in tax revenues and drive the business underground, the Kyrgyz authorities nevertheless are consciously taking these measures”.

She also pointed that another thing to be considered is that the banned industry provides employment for a lot of people that now will be left jobless in a country with an already extremely high level of unemployment.

“Politicians are seldom guided solely by ethical and moral considerations in decision-making. It is possible that this measure will be the first step to monopolize the industry and put it under total control of the state”, she concluded

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