BAKU, August 1, 2025 — While the casino industry serves as a major revenue stream for countries like the United States, China, Russia, and Georgia, Azerbaijan remains on the sidelines. Yet, the potential legalization of casino operations in the country is gaining attention as a strategic tool for boosting the non-oil economy and increasing state revenues.
According to experts, regulated casino activity could enhance the entertainment sector while generating substantial tax income. If integrated effectively, this move could help diversify Azerbaijan’s economy and reduce its dependence on hydrocarbons.
Member of Parliament Vugar Bayramov emphasized the economic potential of such a step.
“The growing number of tourists coming to Azerbaijan and using various services already supports tax revenue growth,” Bayramov noted. “Adding casinos to that equation could significantly bolster the budget, especially from the non-oil sector.”
Currently, Azerbaijan taxes corporate profits at 20%, while personal income tax starts at 14%. The gambling industry, however, often carries higher tax rates in other jurisdictions due to its revenue potential. If Azerbaijan implements a similar structure, it could unlock a high-yield source of public funding.
Bayramov also pointed out that tourism-driven spending on entertainment and services has a multiplier effect on the broader economy. Introducing casinos could reinforce that trend and open the door to regional competitiveness in the gaming and leisure market.
While social concerns remain—such as the risk of gambling addiction or illicit activity—policymakers are weighing the economic benefits. With the non-oil sector a key focus of government strategy, legalized casinos may soon find their way into Azerbaijan’s fiscal playbook.
