The Asian market is a paradise for remote iGaming operators. A rapidly growing economy, a huge population, a boom in technology and, despite strict legislation or even a complete ban on gambling, a huge interest in virtual casinos and sportsbooks. However, it can be difficult to enter the local market and take advantage of its potential due to the sharp negative attitude of some governments towards gambling.
Online gaming and bookmaking are limited or completely banned in many countries for religious, cultural, or political reasons, but this does not stop Asians who want to gamble or place bets (in Asia online betting is incredibly popular). Some of them use VPN to play on foreign platforms, others make transactions in cryptocurrency to bypass restrictions. As a result, the authorities of more and more new jurisdictions are thinking about the introduction of regulations and the partial or complete legalization of gambling.
Asian gambling markets depending on industry regulation are divided into white, gray and black. White ones are jurisdictions where gambling is legalized and licensed. Gray – countries with missing or vague gambling rules, where, however, there is no ban on iGaming. Black markets are those where there is a complete ban on casinos and bookmakers.
Another principle by which Asian markets can be divided into groups is the solvency of residents. The richer the country’s population, the more expensive (but also better quality) the traffic for online gambling websites is. Thus, players from India are not ready to spend huge amounts in casinos, but in such countries operators can bet on the number of clients. In Turkey, on the contrary, traffic is more expensive, but the average player deposit is much higher. Which business model to choose is up to each operator.
Let’s figure out what rules the gambling sphere obeys in different countries of the Asian region and where it is possible to start an iGaming business.
Read more about the gambling rules of each country in our blog.
Gambling in Western Asia
This region of Asia is also rich in controversial gambling laws and prohibitions. However, some countries are opening their doors to the gambling business and legalizing iGaming. In others, locals are finding ways to play online even under severe restrictions. All this speaks of the enormous hidden potential of the market, which we hope will gradually be revealed.
Georgia
Georgia is one of the most gambling-friendly locations in this region of Asia. Gaming (online casinos and sportsbooks) is legal here, and licenses are also issued to new entrepreneurs.
The beginning of the 21st century is a golden time for gambling in Georgia, a real industry boom. During this period, a number of economic reforms were adopted, taxes were reduced and a simplified licensing procedure was introduced. One of the factors accompanying success was the ban on gambling in neighboring Turkey. Players from there simply flooded Georgian Batumi.
The next bright period in the Georgian gambling market occurred during the era of the coronavirus epidemic. Then, during the quarantine and restrictions on gathering in public places, online casinos and bookmakers gained particular popularity. The gambling sector grew rapidly by 23%, despite the closure of land-based establishments. It is worth noting that in Georgia only the owner of a licensed offline casino can obtain a license for an online gambling website.
Georgians adore gambling, sometimes even too much. This is confirmed by the high level of gambling addiction among citizens of the country who are fans of gambling. Of course, local authorities cannot turn a blind eye to this. Thus, in 2022, amendments to the gambling legislation were adopted, according to which gambling is prohibited for persons under 25 years of age, as well as for civil servants and socially vulnerable people. In addition, the tax rate was significantly increased (to 65-70%) and advertising of casinos and sports betting in public media was prohibited. These changes somewhat complicate running a gambling business in Georgia, but its legalization in the jurisdiction still remains one of the most profitable and promising options for operators in the region.
Armenia
Gambling has been legal in Armenia for many years, but recently local authorities have been seeking to strengthen control and tighten gambling legislation.
The first signal was the ban on advertising of gambling companies (with some exceptions) on television and on the Internet. After this, taxes on alcohol, tobacco and gambling were increased in Armenia. For some time, there has also been talk in the country about possible restrictions for sports betting operators. It was proposed to allow bookmaking only in special gambling zones (following the example of Russia and Kazakhstan), turning gambling into a privilege for tourists. These ideas did not find support in society, and therefore were rejected.
In 2022, legislative amendments came into force in Armenia, according to which advertising of all types of gambling is completely prohibited on the Internet, on the radio and in public places. In addition, this summer licensing fees for owners of virtual casinos and sportsbooks were increased.
Turkey
Turkey prohibits all forms of gambling, except state-owned. The government provider, the Turkey Wealth Fund, offers citizens casino games, betting and horse racing betting. However, this is not enough for the Turkish people.
Despite the punishments for illegal iGaming operators and players, as well as blocking foreign online casinos, people in Turkey still passionately want to gamble. That is why VPN services and cryptocurrency are so widespread among locals, who are not afraid to use tricks to achieve their goals.
Azerbaijan
Azerbaijan allows its citizens only two legal types of gambling – state lotteries and sports betting provided by the monopolist Topaz. Unfortunately, local authorities are wary of large-scale legalization of the industry. Of course, the lack of alternatives leads to great interest among Azerbaijanis in foreign online casinos and sportsbooks, which are happy to accept more and more new customers.
Gambling in Central Asia
The trend towards easing bans in the gambling industry is also observed in the countries of Central Asia. Local authorities are aware of the huge potential of the sector and the opportunity to attract funds to state budgets. However, local markets are still largely in the gray area. It means residents enjoy playing in online casinos and placing bets, while states officially only allow land-based gambling for tourists. However, it’s more than nothing, and the legalization of iGaming in the region may be also not far off.
Kazachstan
Gambling regulation in Kazakhstan is quite similar to the Russian one. Firstly, offline casinos can only be located in specially designated areas, namely on the coast of the Kapchagay reservoir in the Almaty region or in the Shchuchin district of the Akmola region. Secondly, until recently there were no restrictions for bookmakers in Kazakhstan. They could freely offer their services throughout the entire jurisdiction.
At the beginning of 2021, the Kazakh authorities approved amendments to the legislation that introduced regulation of sportsbooks. Innovations imply the establishment of a joint center through which all bets must pass.
Virtual casinos in Kazakhstan are in the so-called “gray zone”. This means that it is impossible to obtain a permit for such a platform in the jurisdiction, but there are also no restrictions to foreign operators wishing to offer their services in Kazakhstan.
In general, Kazakhstan is a gambling mecca for residents of other Central Asian countries, where the sphere has been unconditionally banned for a long time.
Uzbekistan
Uzbekistan is a Muslim country, which, however, does not prevent its residents from gambling. Today, only the state casino is officially legalized in the country, but local residents are also regulars at foreign iGaming platforms.
It should be noted that a year earlier the government of Uzbekistan made an attempt to develop gaming regulation. The experiment failed due to a lack of consensus among legislators. However, this can already be considered a “thaw” and the first step towards the legalization of gambling in the country.
Kyrgyzstan
Kyrgyzstan recognizes the potential financial and touristic benefits of the gambling sector and is testing partial regulation. In 2022, country authorities allowed the establishment of designated land-based gambling zones, representing the first official regulatory measure.
The new casinos accept only foreigners to gamble, while residents frequent a substantial underground market. Popular sports among the locals include football, wrestling, boxing, ice hockey, and horse racing, with a rising interest in rugby.
Gambling in South Asia
Unfortunately, numerous countries in this region ban all types of gambling. Other jurisdictions try to be more flexible or simply make no attempt to fight with virtual casinos. However, before entering these Asian markets, it is necessary to carefully study the gaming regulations in each location.
Online gambling in India
In India, gambling regulation has always been carried out not at the state, but at the regional level. Thus, in some states, online gaming is allowed in whole or in part, while in others it is strictly prohibited. At the same time, in a number of regions, this sector is not controlled in any way.
So, iGaming is legal in Sikkim and in Nagaland only games of skill are allowed. In the regions of Andhra Pradesh, Chhattisgarh, Tamil Nadu and Telangana, virtual casinos and sportsbooks are strictly prohibited. All other parts of India do not regulate internet gambling.
The previous year has brought some positive changes. The state government introduced amendments to the legislation that determined the concept of “self-regulatory organizations”. These are registered legal entities consisting of representatives of the gambling sphere with professional knowledge in the field of education, mental health and protection of children’s rights. Two areas of permitted gambling activity were also defined: iGaming for prizes and iGaming for real money. Moreover, before starting to provide gambling services to the population, the operator of a gambling platform must obtain the approval of a self-regulatory body.
Is gambling legal in Bangladesh?
Gambling in Bangladesh is officially prohibited by the Public Gambling Act of 1867. However, there is no clear understanding whether the law applies to iGaming, because at the time when it was adopted, the Internet did not exist even in the imagination of legislators.
The lack of regulation of online casinos and sportsbooks encourages the flourishing of illegal and foreign gambling websites in Bangladesh. Not all unlicensed operators are scammers, but locals’ commitment to gambling on such platforms often leads to financial crimes and money laundering.
Gambling in East Asia Pacific
As in the previous category, countries in this group are at the very beginning of the path to legalizing iGaming. Jurisdictions in the region either strictly prohibit or simply do not regulate online gambling. This approach, however, does not reduce the interest of local residents in online casinos and sportsbooks.
China online gambling market
All gambling options except the state lottery and several types of sports betting are strictly prohibited in China. The government clearly expresses its strictly negative attitude towards the sphere and therefore the chances of legalizing iGaming in the near future are very small.
Despite the ban, the Chinese are regulars at offshore gambling websites, as well as casinos in autonomous Macau and Hong Kong.
Hong Kong
Offline gambling is legal and regulated in Hong Kong. Virtual casinos and bookmakers are still in the black zone, and local authorities regularly take measures to combat illegal platforms.
South Korea
Gambling legislation in South Korea is strict and unwavering. Online gaming is prohibited in any form, and even land-based establishments are only available to tourists (except for the Kangwon Land casino). Only state lotteries, as well as betting on horse racing and bullfights, are legal in the country.
In South Korea, violating the ban on participating in or organizing gambling can result in fines and prison sentences. In addition, local authorities are blocking foreign virtual casinos that accept South Koreans. Thus, the South Korean online gambling market remains closed, which means entering it is risky and impractical.
Japan online gambling market
Since 2018, Japan has allowed the opening of offline casinos as part of resort complexes. In addition, horse racing, mahjong, pachinko and state lotteries are legal in the country. As for iGaming, it still falls under the category of an offense.
Despite the reluctance to legalize virtual casinos, the Japanese authorities do nothing to prevent local residents from playing on foreign websites. Offshore operators, in turn, are happy to receive numerous clients from the land of the rising sun.
Experts predict huge success for the Japanese gaming industry. If local authorities make legislative concessions, the country could become a major player in the Asia Pacific online gambling market.
Gambling in Southeast Asia Pacific
Gaming regulation in this region of Asia is patchy. In some jurisdictions, Asian online casinos are licensed, but in others they are still strictly prohibited. Let’s take a closer look at the biggest players in the local arena.
Vietnam
For many years, Vietnam banned all forms of gambling without exception. The ice broke in 2018 when local authorities legalized betting on football, greyhound and horse racing. The country also launched an unusual experiment, in which citizens with an income of more than $445 and no criminal history are allowed to visit casinos. Thus, the Vietnamese government wants to monitor the behavior of citizens who like to gamble and find out how the legalization of casinos can affect society.
Philippines
The Philippines is a country with rather jumbled gambling legislation. Online gaming is legal there and operators can even obtain licenses, but it’s easy to get confused by local regulations.
Two bodies are responsible for controlling the sector and issuing licenses in the jurisdiction. There are the Philippine Amusement and Gaming Corporation (PAGCOR) and the Cagayan Economic Zone Authority (CEZA). The first authority licenses bingo, bookmakers and offline gambling establishments, while the second issues permits for virtual gaming platforms (but with the condition that services will not be provided to local residents). It would seem that the division is understandable and convenient, but that is not the case.
The fact is that PAGCOR also issues licenses to offshore remote operators (and also without the right to involve Filipinos in the game). These permits are in fact an alternative to those issued by CEZA. Thus, the lack of centralized iGaming licensing always confuses foreigners wishing to obtain a local license.
It is worth noting that Philippine legislation does not prohibit local residents from playing on the websites of foreign operators. In this regard, many view the jurisdiction not as a place to obtain a license, but as a place to operate remotely. In any case, the Philippines is a very important gambling market in APAC.
Singapore
Residents of Singapore can take part in government lotteries and bets on horse racing, as well as play in land-based casinos located in resort areas. Virtual gambling is prohibited, except for games offered by the National Heritage Board and the Singapore Sports Council.
It is important to mention that the Singapore authorities not only ban online casinos but also severely punish violators. Thus, illegal gamblers or operators face huge fines or even imprisonment for several months. All this, however, does not stop Singaporeans from playing on foreign sites using VPN.
Malaysia
In Malaysia, both land-based (except for one legal casino) and virtual gambling are prohibited. However, the lack of strict regulations regarding online casinos and sportsbooks is a loophole for Malaysians who want to gamble.
Complete ban
A number of Asian countries maintain a comprehensive ban on online gambling. Among them are jurisdictions like Singapore, Brunei, and the United Arab Emirates (UAE). These nations enforce stringent regulations due to religious, cultural, or political reasons, posing significant barriers for iGaming operators seeking entry into these markets. Despite the bans, residents of these countries may still attempt to access online gambling platforms through various means, underscoring the persistent demand for such services. Navigating this landscape demands a nuanced understanding of the legal frameworks in each jurisdiction.
The future online gambling in Asia
The Asian gambling market is a sleeping volcano that is just beginning to awaken. The region’s potential in the iGaming industry is enormous. However, the movement towards legalizing virtual casinos and bookmakers is slow. The reluctance of the authorities to abandon conservative approaches to gambling is forcing Asians to play on offshore websites using VPNs and cryptocurrency deposits.
The LicensingAid team is monitoring Asian market news and is ready to answer all your questions. Contact us to learn about gambling regulation and iGaming operating opportunities in any country in Asia or another region.
General trends
Now let’s summarize all of the above and list the main trends in the Asian gaming and betting markets.
- Regulatory reforms
Some Asian countries are considering or implementing regulatory reforms to address the demand for online gambling while ensuring responsible gaming practices.
- Legalization efforts
There’s a gradual shift towards partial or complete legalization of online gambling in certain jurisdictions, driven by the potential for tax revenue and the need to combat illicit gambling.
- Stricter enforcement
Other countries maintain stringent regulations or outright bans on iGaming, intensifying enforcement efforts to curb illegal activities and protect consumers.
- Cross-border collaboration
Collaboration between Asian nations to regulate online gambling activities and combat cross-border issues such as money laundering and illegal gambling operations is gaining momentum.
- Widespread use of cryptocurrency
The use of cryptocurrencies for online gambling transactions is on the rise, offering greater anonymity and circumventing regulatory hurdles in some jurisdictions.
- Using a VPN
Despite bans, gamblers in some countries may use VPNs or other methods to access gaming platforms, reflecting the persistent demand for such services.
- Asian sports betting
Sports betting is in the spotlight in Asian territories. Locals love making bets and are ready to play on bookmaker websites even under strict bans. The experience of some countries shows that iBetting is often legalized earlier than online casinos. Let’s hope that the black markets will soften their policies and at least legalize Asian sport bookmakers in the near future.
FAQ
In this section of the article we will provide brief answers to popular questions about online gambling in Asia.
Which Asian country is the most gambling gambling-friendly?
The Philippines is often considered the most gambling-friendly country in Asia. It boasts a robust regulatory framework, offering licenses for both land-based and online casinos. The Philippine Amusement and Gaming Corporation (PAGCOR) oversees the industry, providing a conducive environment for operators while ensuring consumer protection. Additionally, the country’s favorable tax policies and strategic location contribute to its appeal as a gambling hub in the region.
Which Asian cities are famous for gambling?
Macau and Singapore stand out as renowned gambling destinations in Asia. Macau, often dubbed the “Las Vegas of Asia,” boasts a vibrant casino scene with numerous world-class resorts and gaming establishments. Singapore’s integrated resorts, such as Marina Bay Sands and Resorts World Sentosa, offer a diverse array of entertainment options, including casinos, attracting millions of visitors annually. Both cities are known for their luxurious amenities, high-stakes gaming, and bustling entertainment districts, making them prime destinations for gambling enthusiasts.
How big is the gambling market in Japan?
The gambling market in Japan holds significant potential, although it remains largely untapped due to strict regulations. Estimates suggest that Japan’s gambling market could reach billions of dollars annually once fully legalized and regulated. However, progress is slow, with debates ongoing regarding the scope and implementation of integrated resorts and the legalization of various forms of gambling, such as casinos and sports betting. Despite these challenges, Japan’s appetite for gambling and its status as a tourist destination make it an attractive prospect for investors and operators alike.
Where can I get a license for gambling in Asia?
Several jurisdictions in Asia offer iGaming licenses to operators. The most prominent location is the Philippines, which is known for its comprehensive regulatory framework.
If you would like to find out more about online gambling in Asia, contact LicensingAid. We know the answers to all your questions and are ready to help you on your way to launching a successful online casino in Asia.
