On August 19-20, 2024, the OSCE Programme Office in Astana, in collaboration with the Financial Monitoring Agency (FMA), held a training seminar in Astana focused on strengthening risk management within the gambling and lottery sectors. This initiative is a part of a multi-year co-operation effort aimed at enhancing Kazakhstan's capacity to counter money laundering and terrorist financing.
Gambling is legal in Kazakhstan within designated locations, such as casinos. Legal gambling operators contribute significantly to the state budget through taxes and job creation. However, a parallel shadow industry of illegal gambling also exists, posing a substantial threat to the economy and the well-being of those involved in illegal activities.
According to Bureau of National Statistics, the turnover of bookmaker offices alone reached an estimated 1 trillion tenge (approx. 2 bln. EUR) in 2023. The Ministry of Interior reports that approximately 400,000 individuals regularly patronize these establishments. The growth of illegal gambling activities, including betting shops, online casinos, underground casinos, and illegal gambling machines, continues to impact social well-being and contribute to gambling addiction, known as ludomania. To address this issue, Kazakhstan's Ministry of Tourism and Sports has approved the "Comprehensive plan to combat illegal gambling and ludomania in the Republic of Kazakhstan for 2024-2026".
The seminar saw the participation of 25 attendees, including seven women and 18 men, comprising FMA officers, legal gambling operators, and representatives from commercial banks. They engaged in sessions designed to improve their skills in regulating the gambling industry and curbing illegal activities.
Expert-led sessions covered topics such as AML/CFT risks and mitigation strategies, verification of payment card authenticity, international best practices in gambling regulation, and combating fraud and fake accounts. Practical case studies of gambling regulation in major foreign jurisdictions were also presented to help identify applicable tools for the local context. This seminar aimed to enhance the ability of agency representatives and bankers to manage gambling-related risks and enforce regulations, thereby supporting the integrity of Kazakhstan's financial system.
Madina Akhmetbayeva, a senior officer of the FMA, commented on the seminar's outcomes: "The workshop has proven to be highly effective in equipping participants with the essential skills and knowledge to combat illegal gambling activities. Our collaborative efforts in this seminar underscore the critical importance of ongoing training and adaptation in our fight against financial crimes". She added, "The outcome of this seminar highlights our commitment to improving the regulatory environment and ensures that Kazakhstan remains at the forefront of global standards in gambling regulation. We are confident that the insights gained here will drive significant progress in our efforts to curb illicit activities".
This seminar represents a step towards addressing these challenges and demonstrates the commitment of the Office and its partners to fostering a more controlled and transparent regulation of gambling activities in the host country. By continuing to build on such initiatives, Kazakhstan aims to advance in combating money laundering and securing its financial systems against illicit activities. The OSCE Programme Office in Astana remains dedicated to supporting these efforts through collaboration and knowledge-sharing.
