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Nazrin Abdul

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Tourism remains one of the most dynamic and economically impactful sectors worldwide, contributing not only to GDP growth but also to international visibility and national prestige. For a country like Azerbaijan, which has historically relied on energy exports as its primary economic driver, strategic investment in tourism is both timely and essential. Sustainable development requires a diversified economic base, and the non-oil sector must take on a greater role to ensure long-term resilience and prosperity. In an era defined by rapid globalization and shifting market dynamics, adaptability and innovation are key, and Azerbaijan is demonstrating its commitment to both.

The recent decision to legalize casino operations, viewed as a high-potential component of tourism infrastructure, reflects a forward-looking approach aimed at enhancing the country’s appeal to premium tourists and expanding its service-based economy. Following the official announcement, attention has turned to the practical implementation and broader implications of this policy shift. What economic and social opportunities could this new sector unlock? Let's examine the potential impact.

The prolonged absence of legalized casino operations in Azerbaijan has limited the growth potential of the tourism sector, particularly in attracting high-spending, premium travelers. Casino tourism is widely recognized for drawing affluent visitors whose expenditures significantly exceed those of average tourists—spending more on accommodation, dining, entertainment, and related services. Introducing regulated casinos is therefore expected not only to elevate Azerbaijan’s profile among high-end international tourists but also to stimulate local employment and generate substantial economic returns. By activating this segment of the tourism industry, the country stands to unlock new revenue streams and advance broader socio-economic development goals.

What’s happening worldwide—and how others are turning legal casinos into revenue?

The global casino industry is growing rapidly. It generated $540 billion in 2023 and rose to $580 billion in 2024. By 2028, it’s expected to reach $745 billion. Azerbaijan’s entry into this market is both timely and strategic. With proper regulation, the country can benefit from a share of this expanding industry.

Neighboring countries offer clear examples of how casino operations can boost the economy:

Georgia, despite being smaller, earns far more from tourism—thanks largely to its casino sector, which grew to $28 billion by 2024. A big part of that comes from Azerbaijani visitors.

Kazakhstan earned $2.85 billion from gambling in 2023, with $245 million paid in taxes.

Uzbekistan began licensing casinos in 2025 after seeing large sums spent on illegal online games. The new legal market is expected to bring in $2 billion per year.

Even the UAE, long opposed to gambling, plans to open its first casino by 2027. Meanwhile, Macau earns 80% of its income from casinos.

By legalizing casinos, Azerbaijan joins these countries in turning gambling into a regulated and profitable part of the economy—while also keeping spending and jobs at home.

It is a realistic assessment that, in the absence of legalization, casino activity would likely continue to operate underground. Law enforcement agencies in Azerbaijan have repeatedly uncovered illegal gambling establishments, confirming the persistence of unregulated operations. Moreover, fraudulent online casinos, which are far more difficult to monitor and control, pose ongoing risks to both individuals and the broader financial system.

Introducing regulated casino operations - particularly in designated areas such as Sea Breeze—will not only support the development of tourism infrastructure but also help eliminate the shadow economy surrounding gambling. Legalization offers a pathway to oversight, transparency, and economic benefit, while simultaneously delivering a strong countermeasure against illegal activity and fraud.