Armenia imposes new payment restrictions to curb unlicensed gambling activities

(AsiaGameHub) –   Instructions have been issued to domestic banks to decline transactions associated with Merchant Category Code 7995.

Armenia.- The Republic of Armenia continues to move forward with restructuring its gambling industry. The government led by Prime Minister Nikol Pashinyan has verified the launch of a fresh compliance structure for licensees, alongside initiatives designed to combat unauthorized gambling activities.

Authorities intend to block transfers to unlicensed platforms. Technical directives have been issued to local banks to decline Merchant Category Code (MCC) 7995 transactions, the international standard for gambling, unless they are generated by licensed Armenian operators.

The restructuring also enforces stricter anti-money laundering and know-your-customer protocols on licensed businesses. The implementation of these changes will be supervised by Finance Minister Vahe Hovhannisyan and Rustam Badasyan, the head of the State Revenue Committee.

At the same time, work is advancing on a centralized monitoring system to connect operators directly to state infrastructure in real time. The goal is to ensure regulators have total oversight of gambling activities and payment flows, similar to the DSOM state monitoring system being deployed by Ukraine’s gambling regulator, PlayCity. Following legislation passed in early 2024, the State Revenue Committee is accelerating the hiring of a private software partner to develop the monitoring hub.

Additionally, the Ministry of Finance is preparing the foundation for establishing a specialized gambling regulator, with further announcements anticipated shortly.

These regulatory amendments come after the recent implementation of enhanced player safety protocols, which include compulsory self-exclusion mechanisms and blocking access for individuals undergoing bankruptcy or receiving social welfare.

These modifications succeeded an increase in online gambling licence fees in Armenia a year ago and the implementation of a new 10 per cent turnover tax for gambling operators last July. Fees are set to rise progressively until 2028. The Gaming Law, launched at the beginning of last year, mandated the use of Armenia’s local domain system by operators, introduced geo-blocking, and revised taxes on winnings. Advertising has been restricted to luxury hotels, border checkpoints, and authorized operator channels.