The Armenian government has revoked the operating permit of the nation’s largest casino as a political spat between the ruling party and opposition factions deepens.
Armenia’s Ministry of Economy revoked the Shangri La Casino license this week, claiming that a March 2026 on-site inspection had revealed irregularities.
The ministry spoke of a series of financial “discrepancies.” Inspectors said they discovered that the Shangri La operator Onira Club’s financial declarations did not match the “actual readings” of the casino’s slot machine meters.
In a statement posted on his Facebook page, Economy Minister Gevorg Papoyan said Onira Club’s financial data was full of distortions and falsified information.
Armenian Casino: State Investigators ‘Found Financial Irregularities’
Papoyan said the casino operator has two months to appeal the ruling. He added that the casino must halt operations immediately “to protect public interests, namely the interests of consumers.”
The Shangri La, near Yerevan, first gained a license on January 1, 2014. The government revoked its permit in 2020, claiming the casino had failed to pay all of its operating fees. The government later reversed its decision.
Onira Club’s owner is the businessman and opposition political leader Gagik Tsarukyan, the head of the Prosperous Armenia Party.
Political Dispute Intensifies
Tsarukyan, a cement tycoon, has found himself at loggerheads with the government in recent weeks.
In the lead-up to Prime Minister Nikol Pashinyan’s recent general election victory, Pashinyan took repeated aim at Tsarukyan.
The Prime Minister said he intended to nationalize Ararat Cement, Tsarukyan’s biggest company.
The government has stepped up tax audits and other probes as part of a purge. Pashinyan’s pro-EU government said it had evidence that several former lawmakers had committed espionage on behalf of the Russian government.
Tsarukyan also faces prison time for charges of vote-buying, although a court recently acquitted him of similar charges dating back to the 2017 general elections.
Following the election, Tsarukyan “no longer enjoys immunity as a candidate, meaning he could be arrested at any time,” the media outlet Yerkramas reported.
The development comes as the government continues to tighten control over the land-based and online casino sectors.
Lawmakers last year rolled out a new 10% turnover tax on all casinos, lottery operators, and sportsbook firms.
Earlier this month, they approved a new measure that will force online operators to add a kill switch mechanism to their user interfaces.
If users flip this virtual button, they will automatically be blocked from placing bets on any online platform, whether domestic or overseas, for 5 years.
Foreign firms that fail to incorporate the kill switch will face blocking orders.
The new law also permanently restricts certain groups from gambling online. These include welfare recipients and residents involved in bankruptcy-related court cases.
