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Casinos

Azerbaijan's Milli Majlis (National Assembly) has officially re-legalized casino operations, ending a 27-year ban. The new legislation, passed in its third reading on July 8, permits casinos exclusively on artificial land plots created in the Caspian Sea. However, the specific conditions of the law have immediately sparked controversy, with critics alleging it creates a monopoly favoring a single individual.

The reintroduction of casinos marks a significant shift from the previous policy. Casino games were initially banned in Azerbaijan in 1998 by a decree from then-President Heydar Aliyev. The ban was justified by concerns over the negative impact on public morality, the prevention of economic crimes, and the legalization of illegally obtained money.

Nine months prior to the law's adoption, Emin Agalarov, a prominent businessman and former son-in-law of current President Ilham Aliyev, publicly expressed his desire to establish a casino industry within his "SeaBreeze" project, stating he was awaiting a government response. Critics quickly noted that the only existing artificial island in Azerbaijan is, in fact, owned by Emin Agalarov.

This unique condition has led the Azerbaijani opposition to label the new legislation "Agalarov's Law." Arif Hajili, the former chairman of the Musavat Party, strongly criticized the law, stating, "Conditions are being created for only one person to open a casino in only one area. Besides being a law passed to suit the interests of one person, it also means hindering others from engaging in this business." He further accused the Milli Majlis of "abusing its powers" and legalizing a monopoly, asserting that they "have exceeded their authority and adopted a law that creates unequal conditions and fosters a monopoly in the business sector in Azerbaijan."

Proponents of the new law, including several deputies, argue that it will benefit the country by attracting "elite tourists" and creating new job opportunities. Deputy Azer Amiraslanov emphasized that casinos would be strictly regulated and operate under rigorous state control, requiring special licenses, financial transparency, and compliance with AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) requirements. The law also stipulates that only legal entities can organize casinos, participants must be aged 21 or older, and virtual casinos remain prohibited.

Some deputies also suggested that the issues that led to the 1998 ban, such as "lack of effective control mechanisms" and "failure to study international experience," have now been addressed. They believe that the "strengthening of the state apparatus" and the "establishment of control mechanisms" will ensure the new casino operations do not lead to the same problems.

Despite these assurances, opposition representatives continue to voice their disapproval, arguing that the government should prioritize improving the social well-being of the population rather than re-allowing casino operations under such contentious terms.

The new law signifies a bold step for Azerbaijan's tourism and economic strategy, but its implementation will undoubtedly be closely watched amidst ongoing debates about fairness and economic impact.