Baku:A new tax regime is being proposed for lotteries and sports betting in Azerbaijan, with the aim of providing operators the flexibility to select a tax model based on the Gross Gaming Revenue (GGR) model. This proposal is reflected in a proposed amendment to the Tax Code.

According to Azeri-Press news agency, the draft amendment suggests that lottery and sports betting operators should have the option to choose between the GGR model and the existing simplified tax regime of 6% on turnover. Additionally, under the current Tax Code, winnings of up to AZN 500 from lotteries and sports betting are exempt from income tax, but amounts exceeding this threshold are subject to taxation.

The proposed changes are intended to protect the competitiveness of legally operating operators, retain players within the licensed market, and reduce the share of the black market. To achieve these goals, it is planned to either abolish the 10% tax on winnings exceeding AZN 500, excluding promotional lotteries, or optimize the tax burden in the sector.