Azerbaijan has approved tougher criminal penalties for illegal online gambling, even as the country prepares to introduce a tightly regulated legal casino market.
Reportedly, President Ilham Aliyev (as depicted in the featured image) has signed amendments to the Criminal Code that increase punishments for organising illegal gambling online, particularly via websites, social media platforms and mobile applications. The new rules introduce strict penalties for repeat offenders, organised criminal groups and cases involving minors or large criminal proceeds.
Under the updated legislation, offenders can face fines of up to twice the illegal income earned, a restriction of liberty for two to four years, or imprisonment for the same period.
New jail terms
People found guilty of standard offences can face prison sentences of between two and four years. The penalties increase if the crime involves organised groups or generates large illegal profits, with jail terms rising to as much as five years. In the most serious cases involving especially large criminal proceeds, offenders can be sentenced to between five and eight years in prison.
These new tougher penalties are part of Azerbaijan’s wider effort to crack down on illegal online gambling. Most of the changes focus on gambling activities carried out over the internet, including those operating through digital platforms and mobile apps.
Authorities have also introduced stricter penalties where gambling offences involve children or are committed by multiple people acting together. The government believes stronger criminal sanctions will help deter organised networks operating illegal gambling businesses online.
The reforms also complement other efforts to improve cybercrime enforcement across the country. Earlier this year, Azerbaijan established a National Cybersecurity Agency, which is expected to help tackle online fraud and illegal gambling.
Legal casinos coming soon
Despite the tougher stance on illegal gambling, Azerbaijan has recently begun opening the door to a legal casino industry under strict government supervision.
For many years, land-based casinos were prohibited in the country, while licenced sports betting and horse-race totalisators remained the only legal forms of gambling. However, in 2025, lawmakers approved legislation allowing casinos only in specially designated tourism zones on artificial land in the Azerbaijani sector of the Caspian Sea, with operators required to hold government licences and be subject to regulatory oversight.
New licence rules likely
The new reforms now create a clear distinction between licenced casino operations and illegal online gambling, with the latest Criminal Code amendments focused solely on the latter. The government has also tasked regulators with developing licencing rules, operational standards and oversight mechanisms for future casino operators.
As Azerbaijan prepares to regulate legal casinos, it is also stepping up action against illegal gambling. The government believes that the tougher penalties will discourage illegal operators and give authorities more control over the sector.
While licenced casinos are expected to operate under strict regulation once the new framework is fully implemented, the government has made it clear that illegal online gambling will continue to face increasingly severe criminal penalties.
Don’t just read the news, stay ahead of it. Subscribe HERE to SiGMA’s Top 10 News countdown for stories shaping iGaming’s future, weekly insights from the world’s biggest iGaming community, and exclusive subscriber-only offers.

