Azerbaijan Approves Casino Legalization on Artificial Islands in the Caspian Sea

The new legislation permits casino operations exclusively on artificial land plots created in the Caspian Sea. Lawmakers backing the bill say the initiative is aimed at boosting tourism, creating jobs, and increasing tax revenues. It also seeks to curb illegal gambling and reduce the outflow of Azerbaijani players to foreign or online gambling platforms.

Under the newly adopted law, only licensed legal entities will be allowed to operate casinos. Operators must comply with strict financial transparency standards and adhere to anti-money laundering and counter-terrorism financing (AML/CFT) regulations. The law includes provisions for state fees, payout guarantees, and other regulatory requirements, with full government oversight from application to operation.

Participation in gambling will be restricted to individuals over the age of 21. The law also bans virtual or online casinos, reinforcing the country’s intent to maintain a tightly controlled and location-based gaming environment.

The legislation aligns with broader plans to position Azerbaijan as a premium destination for casino tourism in the region.

Notably, this move follows growing interest from prominent Azerbaijani figures. In October 2023, businessman and entertainer Emin Agalarov—also the former son-in-law of President Ilham Aliyev—publicly expressed a desire to open a casino at the luxury SeaBreeze resort in Nardaran, near Baku. Agalarov, who owns Azerbaijan’s first artificial island, revealed in an interview with Russian journalist Ksenia Sobchak that the government was evaluating proposals to legalize casinos.

Prior to the adoption of this law, legislation had already been passed to legitimize Agalarov’s artificial island projects, even though construction had already commenced.

With this new regulatory framework in place, Azerbaijan is poised to enter a new era of state-regulated, land-based gambling with ambitions of becoming a regional gaming and tourism hub.