Starting a Bookmaker Office in Kazakhstan: Nuances and Benefits

The gambling sector has always been an encouraging business direction with a fast payback. While the organisation of gaming projects is under strict control or even a complete ban almost everywhere, betting projects get all the benefits.

Kazakh market is no exception — its bookmaker offices are approved as one of the greatest sources of income for the treasury, as well as an interesting sector for investment.

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Kazakh Bidding Sector: Industry Overview

The development of local gaming institutions began in the 90s. For several years, the sphere grew almost uncontrollably. Severe legal regulation of the sector came into force in 2007. It stabilised the situation, turning gambling into a permanent source of state revenue.

2007 was a turning point for the sports betting segment. The law prohibited the operation of casinos, so bidding sites became the only gambling entertainment available to a mass audience.

Opening a legal bookie office in Kazakhstan is simple as the government provides the most loyal conditions:

1. Network of betting shops covers all the country's cities. At the same time, the casino is forbidden to open outside of 2 reservations: Kapshagay and Borovoye.
2. The local market provides competitive conditions for obtaining a licence for wagering activities. In Kazakhstan, there is a single permit for both offline objects and online services.
3. There are no taxes on player winnings.

Legal Framework

The Ministry of Culture and Sports of the state is the accredited body for the management of the regional gambling industry. In 2014, the local apparatus attempted to evict not only casinos but also existing bookmakers to special areas.

The main goal of the amendment was stricter control and the reorganisation of betting as a source of government income. Although the project was rejected, there was a gradual increase in tax rates for running the business.

Following the new amendments to the taxation system, the current rates are as follows:

• table — 10,869.61 US dollars (x1,660 monthly settlement);
• automatic — 392.88 US dollars;
• offline bookmaker office — 1,964.39 US dollars per cash register;
• electronic cash system of the betting shop — 19,643.88 US dollars.

The result exceeded the wildest expectations. In 2017, the state treasury was replenished by 1,361,322 US dollars, while in 2018, the industry generated a quantity of 2,722,644 banknotes. In total, the bookmaker segment provided about 10,000 people with jobs.

Licensing Nuances in Kazakhstan

Obtaining permits is a relatively cheap and fast process. A novice entrepreneur must provide a package of papers that contain the following information:

• an identity card;
• confirmation of paying a licence commission;
• a document on the premises and hardware for conducting activities;
• copies of business deals with security companies;
• an extensive description of the rules of the organisation;
• a bank contract;
• an application.

The documentation must be submitted only in the Kazakh language.

To enter into a contract with a bank, an entrepreneur needs to have at least 244,800 US dollars in capital. The amount is transferred to a separate account with the condition of issuance on demand and is used to pay out winnings.

The annual licence fee is 3,900 US dollars (except for the first year of the project operation).

The permit is valid for 10 years from the issue date.

Operator's Responsibilities

For legal work in the country, businessmen need to buy a local licence and comply with such requirements:

1. Cash registers and gambling zones of the bookie shop must be equipped with video recording systems with a storage capacity for at least 7 days.
2. The room should have a place dedicated to the rules of the venue in the Kazakh language.
3. In the absence of the required amount for payments, the operator is obliged to use the reserve fund.
4. The operator has to get the necessary hardware and software to perform the following actions: accepting bids, accounting for receipts, data processing, and controlling payouts.
5. It is important to obtain the equipment to monitor participants and the outcome of events on which money bets are made.
6. Bids must be accepted only through the relevant cash registers.
7. Information on the movement of funds is provided to the authorised bodies at least every 6 months.

Ways for Account Replenishment

A unique feature of Kazakh online resources is the almost complete absence of sites in the local language. The country's population regularly visits foreign services.

A similar situation is observed in the field of deposits. Bookmakers accept both the local currency (tenge) and common banknotes, such as the US dollar and euro.

In digital establishments, bettors can use universal bank cards MasterCard and Visa. Skrill or Neteller e-wallets are also very popular.

Key Approaches to Opening a Kazakh Bookie Office

The most well-known options for starting the business are the following:

The Main Things about the Betting Business in Kazakhstan

• We offer up-to-date solutions for the creation of any wagering project — digital platforms and ground establishments.
• Bett-Market has a long-term experience in the international market and collaborates with leading software providers: BetConstruct, CASEXE, Slotegrator, 1xBet, and many others.
• The range of products is constantly expanding. You can always purchase licensed solutions or rent software.

Start a profitable bookmaker’s business on favourable terms with us. For more details, feel free to contact our managers.

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