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Caucasus and Central Asia · Caucasus

Online gambling in Azerbaijan: regulation, licence and market guide

State monopoly Reviewed September 2026 Site language available

Azerbaijan allows gambling only through state-authorized lottery and betting operators; mainland casinos have been banned since 1998, online casino and poker are prohibited, and a 2025 law permits casinos only on artificial Caspian islands.

Regulator
MoE, STA
Local licence for private operators
No
Operator tax
No GGR tax regime for private online operators exists because none can be authorized. Trade press reports that the authorized lottery and betting operators pay 6% of gross proceeds and their sales agents 4% of commissions; the tax treatment of island casinos is being set under the 2025 law.
Player tax
Winnings from lotteries and authorized sports betting up to AZN 500 are exempt from income tax; above that threshold a 10% tax is withheld by the operator on the net winnings, according to trade and industry sources summarizing the Tax Code.
Currency
Azerbaijani manat (AZN)
Languages
Azerbaijani
Payment methods players use
local bank cards (Visa and Mastercard), mobile wallets and payment terminals, bank transfer
Last reviewed
September 2026

Azerbaijan runs a state-authorized model rather than a licensing market. Lotteries are reserved to state-controlled Azerlotereya OJSC, which has been under long-term private management since 2021 and runs the Misli.az brand, and sports betting is offered only through operators authorized by the state, historically the Topaz brand and now also Misli. Casinos were banned nationwide in 1998 and online casino games and poker remain prohibited, with organizing unauthorized gambling a criminal offense under Article 244-1 of the Criminal Code. Amendments in 2021 and 2022 to the Law on Lotteries and the Law on Advertising oblige telecom operators to block foreign gambling sites and ban gambling advertising, and in 2026 the Central Bank ordered banks and payment firms to cut transfers to foreign betting platforms. Law No. 240-VIIQD of 8 July 2025 created a single exception: licensed casinos on artificial land areas in the Azerbaijani sector of the Caspian Sea.

VerticalStatus in Azerbaijan
Online casinoProhibited
Sports bettingMonopoly
Online pokerProhibited
LotteryMonopoly
Social casino (free to play)Unclear

State monopoly: A state or single licensee runs online gambling; private operators cannot be licensed.

Who regulates gambling in Azerbaijan?

Azerbaijan gambling licence: how it works

There is no licence for online gambling of any kind. Lotteries may be organized only by the state lottery operator, Azerlotereya OJSC, whose exclusive right dates from 2001 and which the Ministry of Economy placed under long-term contractual management by a subsidiary of Türkiye's Demirören group in February 2021. Sports betting is conducted under state authorization through a very small number of operators (the Topaz brand with its eTopaz online channel, and Azerlotereya's Misli.az) rather than through an open licensing process. Land-based casinos are prohibited on the mainland; the only route to a casino licence is the regime created by Law No. 240-VIIQD of 8 July 2025 for artificial land areas in the Caspian Sea, which trade press reports carries a state duty of AZN 340,000 plus AZN 340,000 a year and a minimum entry age of 21, and which does not extend to online play.

What an applicant needs

  • Online casino, poker and private online betting: no application route exists; organizing unauthorized gambling is a criminal offense
  • Lotteries: exclusive right of state-controlled Azerlotereya OJSC
  • Sports betting: state authorization of a single-operator model; no public tender or licensing window
  • Island casinos: licence under the 2025 law for artificial land areas only, with land-based operations and a 21+ age limit
Licence cost
No licence for online gambling exists. Trade press reports a state duty of AZN 340,000 plus AZN 340,000 a year for a casino licence on an artificial island under the 2025 law.
Duration
Not applicable for online gambling
Local entity required
Not specified
Processing time
Not applicable

Gambling taxes in Azerbaijan

  • Operators: No GGR tax regime for private online operators exists because none can be authorized. Trade press reports that the authorized lottery and betting operators pay 6% of gross proceeds and their sales agents 4% of commissions; the tax treatment of island casinos is being set under the 2025 law.
  • Players: Winnings from lotteries and authorized sports betting up to AZN 500 are exempt from income tax; above that threshold a 10% tax is withheld by the operator on the net winnings, according to trade and industry sources summarizing the Tax Code.
  • Also: Azerlotereya's surplus flows to the state budget and to sport through the Ministry of Youth and Sports programs.

Advertising, player protection, KYC and payments

Advertising

Gambling advertising is banned under 2021 amendments to the Law on Advertising, including promotion of lotteries, sports betting and prize draws by anyone other than the authorized operators within the limits set for them; advertising of foreign gambling sites is prohibited and telecom operators must restrict access to them.

Responsible gaming

The authorized operators apply an 18+ age limit for lottery and betting products and identity registration for online accounts; the 2025 island-casino law sets 21 as the entry age. There is no national self-exclusion register or dedicated gambling regulator, and consumer-protection work sits with the State Service for Antimonopoly and Consumer Market Control.

Identity and age verification

Online lottery and betting accounts with Misli.az and eTopaz require registration with identity data and Azerbaijani payment instruments, and the operators withhold tax on winnings above AZN 500. The Financial Monitoring Service supervises AML reporting, and since 2026 banks must report and stop transaction patterns linked to foreign betting.

Payments

Authorized operators accept local bank cards, mobile wallets and terminal payments. In 2026 the Central Bank of Azerbaijan, citing millions of manats flowing abroad through unauthorized betting schemes, instructed banks, fintechs and card issuers to block transfers to foreign sportsbook and casino platforms and to report suspicious accounts opened to channel such deposits. Access to foreign gambling websites is blocked by telecom operators under the 2021 amendments.

Notable restrictions

  • Casinos banned on the mainland since 1998; online casino and poker prohibited
  • Lotteries reserved to Azerlotereya; sports betting only through state-authorized operators
  • Gambling advertising banned; foreign gambling sites blocked by telecom operators
  • Banks and payment firms ordered in 2026 to cut transfers to foreign betting platforms
  • Criminal liability for organizing unauthorized gambling (Article 244-1 of the Criminal Code)
  • Casino licences available only on artificial Caspian Sea islands, land-based, 21+

Azerbaijan iGaming market: size, players and payments

No reliable public estimate. Azerlotereya does not publish gross gaming revenue in a comparable format, and the Central Bank has said only that millions of manats a year leave the country through unauthorized betting channels.

No official participation statistics are published; the authorized operators report growth in online lottery and betting registrations since the 2022 digital reforms.

Misli.az and eTopaz sell primarily through mobile apps; no official mobile share is published.

State-controlled Azerlotereya (managed by Demirören's YMT Sans since 2021, with a ten-year Scientific Games technology partnership from 2022) and the authorized Topaz betting brand are the only legal operators; no private licensing exists and unauthorized foreign sites face blocking and payment cut-offs.

What players play
football bettinglotteries and instant tickets (Misli)bingo-style draw gamesvirtual sports
How they pay
local bank cards (Visa and Mastercard)mobile wallets and payment terminalsbank transfer

Timeline: how Azerbaijan got here

  1. 1998Casinos banned nationwide
  2. 2001-11Azerlotereya receives the exclusive right to organize all lotteries
  3. 2004-03Law on Lotteries adopted on 5 March, setting the state-operator framework
  4. 2021-02Azerlotereya placed under long-term management by Demirören subsidiary YMT Sans B.V.
  5. 2021-12Amendments oblige telecom operators to block foreign gambling sites and ban gambling advertising
  6. 2024-05Law on the Creation of Artificial Land Areas in the Caspian Sea adopted on 7 May
  7. 2025-07Law No. 240-VIIQD of 8 July permits licensed casinos on artificial land areas only
  8. 2026Central Bank orders banks and payment firms to block transfers to foreign betting platforms

Outlook

Implementation of the island-casino regime (licensing rules, duties and the first artificial-land resorts) is the only liberalization on the table, and it is land-based and tourism-focused. Online casino and poker remain prohibited, the state-operator model for lotteries and betting is being reinforced, and enforcement is shifting toward the payment layer through the Central Bank and the Financial Monitoring Service. No bill to license private online gambling existed as of September 2026.

GameBridge and Azerbaijan

Not served by GameBridge. Azerbaijan prohibits online casino and poker, reserves lotteries and betting to state-authorized operators and criminalizes organizing unauthorized gambling, so GameBridge brands exclude Azerbaijan by default.

Azerbaijan is on GameBridge's default exclusion geo list for every brand, whichever licence the brand operates under, and the platform's country controls block registration, deposits and play from Azerbaijani IP addresses, addresses and identity documents. AZN is not configured as a player wallet currency and no Azerbaijani-language site content is offered. This page exists so compliance teams can verify Azerbaijan's status quickly and cite the primary sources; if Azerbaijan adopts a licensing model for online gambling, GameBridge would support licence holders under the turnkey model and revisit this page.

Frequently asked questions

Is online gambling legal in Azerbaijan?
Only lotteries and sports betting offered by state-authorized operators, Azerlotereya's Misli.az and the Topaz brand, are legal. Online casino games and poker are prohibited, organizing unauthorized gambling is a criminal offense, foreign gambling websites are blocked by telecom operators and, since 2026, banks must stop transfers to foreign betting platforms.
Can a foreign company get an Azerbaijani gambling licence?
Not for online gambling. Lotteries are the exclusive right of state-controlled Azerlotereya and sports betting runs through state authorization rather than a licensing process, so there is nothing to apply for. The only new licence category, created by Law No. 240-VIIQD of July 2025, covers land-based casinos on artificial islands in the Caspian Sea.
Are casinos legal in Azerbaijan?
Not on the mainland, where casinos have been banned since 1998. A law adopted on 8 July 2025 allows licensed casinos exclusively on artificial land areas in the Azerbaijani sector of the Caspian Sea, with trade press reporting a state duty of AZN 340,000 plus AZN 340,000 a year and a 21+ entry age. The exception does not cover online casino games.
Is there a tax on gambling winnings in Azerbaijan?
Winnings from lotteries and authorized sports betting up to AZN 500 are exempt from income tax; above that, a 10% tax on the net winnings is withheld by the operator before payout, according to trade and industry sources summarizing the Tax Code. The authorized operators are reported to pay 6% of gross proceeds, and no private operator tax regime exists.
How does GameBridge treat Azerbaijan?
Azerbaijan is excluded by default on every GameBridge brand: the geo-controls block Azerbaijani registrations, deposits and play, no AZN wallet is configured, and marketing tools suppress Azerbaijani traffic. GameBridge does not help operators reach a market where private online gambling is unlawful. See Managed services for compliance tooling and the CIS and Central Asia market page.

Sources and review

Reviewed against the sources below on 11 September 2026. Regulation changes; confirm the current position with local counsel before launch.

Regulatory summaries are provided for orientation only and are not legal advice. Licensing requirements change; we validate them with you during scoping.

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