The potential legalization of casino operations in Azerbaijan is once again the subject of debate in the broader context of economic diversification, tourism development, and fiscal sustainability. Despite the formal ban, a significant number of Azerbaijani citizens travel abroad each year—primarily to Georgia and Russia—to engage in gambling activities. This represents not only a direct outflow of capital but also a missed opportunity to develop the domestic tourism and entertainment industries.
While neighboring countries increasingly benefit from regulated gambling economies, Azerbaijan remains excluded from this revenue stream. However, global experience demonstrates that, with a clear legal framework, robust oversight mechanisms, and transparent fiscal policy, the casino industry can serve not only as a revenue source but also as a driver of economic activity across interconnected sectors—from hospitality and food services to transportation and retail.
In jurisdictions with mature gambling sectors, such as the United States and China, annual revenues from casinos reach tens of billions of dollars. Regionally, the examples of Georgia and Russia are particularly instructive: these countries have established legal gaming zones with integrated infrastructure that create jobs, stimulate employment, and generate stable tax revenues across multiple levels of government. In some cases, the turnover from this sector exceeds the annual budget of entire industries, with employment figures reaching into the tens of thousands.
Against this backdrop, Azerbaijan’s continued prohibition has failed to prevent the existence of illegal gambling venues and parallel financial structures. On the contrary, it has contributed to the growth of the informal economy, erosion of the tax base, and increased socio-economic vulnerability in certain population groups. The rise of online casinos and financial pyramid schemes has further entrenched a non-transparent environment that is difficult for authorities to regulate.
Legalization is increasingly viewed as a pragmatic policy tool—one that, if implemented with institutional maturity and political will, could eliminate unregulated practices and create a transparent business environment. A properly regulated framework would span licensing, taxation, compliance standards, and financial monitoring, ensuring alignment with both public interest and economic goals. Restrictions on location—such as siting casinos away from city centers and educational institutions—along with clear operational standards, can help mitigate the risks of money laundering and social harm.
Casino infrastructure can be integrated into broader tourism development models, particularly in regions with favorable geography, climate, and transport access. Beyond expanding the tourism map, this would attract foreign currency inflows and stimulate domestic investment in hotels, logistics, and services. In addition to direct tax revenues—including VAT, corporate income tax, social contributions, and licensing fees—the industry has the potential to generate employment across a wide spectrum of both skilled and support occupations.
The fiscal impact of legalization includes both immediate revenue gains and indirect multiplier effects in adjacent sectors. Enhanced domestic consumption and increased foreign tourism could play a key role in strengthening the non-oil sector—a strategic priority of the country’s current economic agenda.
Nonetheless, successful legalization requires a systemic approach. It must be aligned with broader policy objectives in the areas of entertainment regulation, urban development, and tourism planning. Thorough assessments of social implications—including potential impacts on vulnerable groups—are essential, as is the development of support services and addiction prevention programs. It is critical to emphasize that the issue of legalizing casinos is not solely a moral or ethical dilemma; it is a pragmatic consideration within the framework of economic modernization and fiscal resilience.
International practice suggests that, when supported by political resolve, legal transparency, and competent institutional management, the casino industry can evolve from a high-risk zone into a growth platform. For Azerbaijan, this represents not only the opportunity to reclaim lost financial and tourism potential, but also the chance to develop a new model of interaction between government, business, and society—one based on openness, accountability, and long-term vision.
