🫦 Armenia🇦🇲: key characteristics of the country’s gambling sector

🫦 Armenia🇦🇲: key characteristics of the country’s gambling sector

Armenia’s rapidly expanding B2B gambling ecosystem operates with virtually no significant regulatory costs, while coexisting with one of the region’s most expensive and tightly regulated B2C frameworks.

➡️ For B2B operators, there is no dedicated licensing regime. Companies are not required to obtain permits for specific gaming products and instead operate under general corporate and banking compliance standards, primarily AML and KYC requirements.

➡️ As a result, entry barriers remain minimal, ensuring a steady inflow of international companies using Armenia as an operational base. Some of these firms already hold licenses in jurisdictions such as Curaçao or Anjouan, but selected Armenia for back-office operations, software development, risk management, or payment architecture.

➡️ By contrast, the annual licensing fee for B2C operators doubled in 2025 and now stands at approximately USD 1.5 million. Although the license is technically permanent, it remains conditional on continued payments and ongoing regulatory compliance. Operators are also subject to additional taxation, including deductions from gross gaming revenue and broad corporate obligations.

➡️ The high participation cost ensured that only large and well-capitalized companies could operate in the market. At present, there are five licensed operators.

➡️ Nevertheless, over the past year, more than 20 companies relocated to the country, some employing between 1000 and 1500 people. For a small economy, this represents a substantial expansion.

➡️ Context: Armenia is classified as a TIER2 jurisdiction, with a population of 3,076,200 and a GDP of 16,042 USD. According to OECD data, information and communication technologies already account for 4.5% of GDP, while local reports indicate that the broader technology sector exceeded 3.1 billion USD in production volume during 2024. The gambling industry is becoming increasingly integrated into this ecosystem.

➡️ Additional context: gambling turnover in the country increased from 36 million USD in 2010 to 16 billion USD in 2023. In addition, more than 2 billion USD was deposited into online casino accounts during 2024. These figures reflect player turnover and deposits rather than operator profits, but they highlight rapid growth in market activity.

➡️ However, the country’s payment systems integration infrastructure is still not as flexible or customizable as many operators would prefer. As a result, numerous companies maintain bank accounts abroad, while cryptocurrencies continue to gain relevance within the sector.

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