Kazakhstan Government Mulls Giving Green Light to Several New Gambling Zones

The government of Kazakhstan is considering expanding the number of regions that can operate casinos in special gambling zones.

According to the Kazakh media outlet Zakon, Yerbol Myrzabosynov, Minister of Tourism and Sports, stated that the state is looking to overhaul its tourism regulations.

This could mean the establishment of new gambling zones in the Mangystau region, located on the Caspian Sea coast. Another potential development site is the Panfilov District, located near Lake Alakol in the Zhetysu region.

Myrzabosynov also suggested the government may allow gambling in the Talgar district of Almaty, as well as Markakol and Zaysan, in the east of the country.

The minister said that, like the country’s other gambling zones, casinos in these areas would only admit foreign passport holders.

Myrzabosynov claimed that each new casino could raise between 2 and 3 billion tenge worth of taxes, or approximately $3.9 million to $5.9 million.

Plans for the new casinos began to emerge last month, the Kazakh media outlet Tengri News reported.

Kazakhstan: Gambling Zones to Expand

Unnamed government officials told the media outlet that the Talgar project would comprise a “comprehensive tourism cluster.”

The resort would also comprise ski slopes, agri-tourism facilities, and other sports tourism services. These would all operate adjacent to a casino for foreign passport holders only.

Regional tourism officials said the project’s operators would take care “not to increase the risk of gambling addiction among local communities.”

“Neighboring countries have already opened gambling zones to foreign tourists,” said the official. “This is contributing to increased tourism rates, higher revenues, and heightened interest in the region.”

The official concluded that the project would “make the region even more attractive to overseas travelers, create additional jobs, and increase tax revenues.”

Currently, Kazakhstan permits casinos, slot machine centers, bookmakers, and other betting outlets to operate in two designated zones.

The first is located near the Kapchagay Reservoir, approximately a two-hour drive from downtown Almaty.

Another is situated in the Burabay district of the Akmola region.

Government Eyes Foreign Investment

Officials say the plan remains under review by government agencies, which have yet to make a final decision on casino expansion.

Earlier in 2005, the Ministry of Tourism and Sports said it was considering opening gambling zones in the Almaty, Mangystau, and Zhetisu regions.

It noted that these areas “are already key tourist centers.” The ministry said it was speaking to potential investors, “including companies from China, Europe, and Russia.”

The ministry added that it could look to drive interest in Kazakh casinos by offering foreign tourists lower fees for table and slot machines. It has also suggested exempting bettors from taxes on their winnings.

Adilet Turganbayev, the Acting Chairman of the Committee for the Regulation of Gambling Business and Lottery, stated that casinos allowing domestic passport holders could face fines. Habitual offenders will have their operating permits revoked, Turganbayev added.

In nearby Russia, a Chinese investment firm inked a $194 million deal to build a casino complex in Russia’s Primorye Gambling Zone last year. The zone is located in Primorsky Krai, on Russia’s Far Eastern border with China.