In the modern era, tourism is based not only on historical and geographical attractions but also on the entertainment and freedom of choice offered to tourists. Global trends show that tourists increasingly prefer countries that provide more liberal opportunities. In this context, casino infrastructure has become one of the leading components of tourism worldwide.
Casino business around the world
Today, the United States is the leading country in the casino business. In 2023 alone, the revenue of commercial casinos operating in Las Vegas exceeded 60 billion USD. China's Macau region, with a total gaming revenue of 22.7 billion USD in 2023, is recognized as the second-largest hub in the global casino industry.
Georgia has the most liberalized casino sector in the South Caucasus. In 2024, the casino turnover in the country reached 28 billion USD, with 20,000 people employed in the sector. The average monthly salary amounted to 1,182 USD. Georgia is already considered a regional “casino cluster.”
Russia is also a strong player in this field: in 2023, the total revenue of the country’s four main casino zones (Sochi, Vladivostok, Altai, Kaliningrad) was 2.1 billion euros, and tax payments to the state budget amounted to 2 billion rubles.
These realities show that the casino sector has moved beyond being merely a complementary element of global tourism and has become one of the main sources of income in the economic strategies of many countries. The entertainment and gaming industry has macroeconomic impact not only through tax and licensing revenues, but also by revitalizing sectors such as hospitality, catering, transportation, and services. For this reason, many states are incorporating this sector into the legal framework and regulating it to bring it into the economic turnover.
Legal steps in Azerbaijan
Against this international and regional backdrop, Azerbaijan has taken its first serious legal step toward permitting casino operations. Amendments to the legislation have been approved to legalize the casino business in the country. Specifically, President Ilham Aliyev signed a decree on July 8, 2025, implementing Law No. 240-VIIQD of the Republic of Azerbaijan, which amends the Civil Code, the Criminal Code, the Code of Administrative Offenses, and the laws “On Information, Informatization, and Protection of Information,” “On State Duties,” “On Advertising,” “On Licenses and Permits,” “On the Prevention of Legalization of Criminally Obtained Property and Financing of Terrorism,” and “On the Creation of Artificial Land Areas in the Part of the Caspian Sea (Lake) Belonging to the Republic of Azerbaijan.”
With this decree, the holding of casino games on artificial land areas in the part of the Caspian Sea (lake) belonging to Azerbaijan has been officially legalized.
What does casino activity promise for the Azerbaijani economy?
In a statement to APA-Economics, economic expert Khalid Karimli emphasized that casino activity will support the development of tourism in Azerbaijan: “When tourists choose a country to visit, they consider not only its natural, geographical, and historical beauty, but also the extent of freedoms offered to them. In order to expand its tourism economy, our country must learn from the experience of neighboring countries and further broaden tourism-related freedoms. For example, Georgia is not necessarily superior to Azerbaijan in terms of natural geography or historical monuments. In terms of investments in the tourism sector, it even lags behind Azerbaijan. However, it sometimes receives three to four times more tourists than we do. This is due to Georgia offering greater freedoms to tourists and more affordable entry and exit conditions. From this perspective, Azerbaijan should benefit from the experience of countries that have been successful in tourism. The legalization of casino activity is another freedom offered to tourists. But we shouldn't stop here. We must take additional steps to support tourism development and legalize other types of entertainment as well.”
Chain-reaction economic growth
According to Khalid Karimli, permitting casino operations in Azerbaijan will support the development of the country's hotel industry and further stimulate the catering sector: “At the same time, foreign casino enthusiasts will also spend money in other sectors. Tourism contributes to comprehensive economic growth. One of tourism’s greatest advantages is that it not only grows on its own, but also drives the development of adjacent sectors, and the income generated is distributed more quickly across different layers of the population. In other words, tourism is highly inclusive. A large number of people are employed in the tourism sector. Legalizing casino activity will also lead to increased employment. The spending of incoming tourists will additionally impact agriculture, the agri-industrial sector, and retail trade. On the other hand, local casino enthusiasts will no longer have to travel abroad for entertainment.
The development of tourism is a major priority for the diversification of Azerbaijan’s economy beyond oil. Providing necessary freedoms, ensuring convenience, improving the factors that increase our country’s attractiveness to tourists, and solving existing issues are critically important. This is also significant in terms of developing the non-oil sector of the economy.”
He also touched on the substantial volume of currency circulation in the global casino business: “Georgia has been particularly successful in this field. The turnover in Georgia’s casino sector is estimated at 16–18 billion euros. According to official data, the casino turnover in Kazakhstan is around 3 billion euros. In Russia, it exceeds 2 billion euros. Uzbekistan has also liberalized this sector, and its casino turnover is expected to reach 1 billion euros. Unofficially, estimates suggest that the turnover in Uzbekistan may actually reach 7–8 billion euros. In short, this industry involves the circulation of large financial resources.”
Tourism sector to be revitalized
Tourism expert Rahman Guliyev also told APA-Economics that the establishment of a casino business in Azerbaijan will make the country more attractive to tourists: “This will lead to an increase in the influx of high-end tourists. In particular, wealthy travelers from Kazakhstan, Russia, the Middle East, China, and Türkiye tend to prefer countries where casinos operate. These types of tourists don’t just visit casinos — they also spend large amounts on luxury hotels, restaurants, spas, and premium shopping. Through casinos, tax revenues will increase, and the incomes of sectors tied to tourism will also grow. International experience shows that major cities where casinos operate are often among the world’s wealthiest. The Batumi model in Georgia is a prime example. Between 2012 and 2019, Batumi experienced an economic boom thanks to tourism and the gaming industry.”
Wealthy tourists will come to the country
Rahman Guliyev noted that even among Azerbaijani tourists traveling abroad, there is significant interest in casinos: “Many people from Azerbaijan travel to Georgia and Cyprus specifically for casinos. Opening casinos in Baku will not only spark greater interest in domestic tourism among local visitors but also create favorable conditions for attracting high-end foreign tourists to Azerbaijan. Among tourists from Arab countries, there is already a strong interest in casinos. Tourists from these countries, particularly those in the upper-income segment, tend to gravitate toward cities where casino activities are available. Once casinos begin operating, Azerbaijan’s tourism sector will experience a surge. This will lead to a 2-3 fold increase in jobs in sectors such as air transportation, ground transport, food services, tourism-related services, and all other connected fields. As a result, people working in various economic sectors — large and small — will see their incomes grow. The start of casino operations will strengthen the economy and ensure an inflow of foreign currency into the country. Citizens will increase their earnings by providing services to incoming tourists. A single casino tourist tends to spend as much as 100 regular tourists from other countries, which makes this a major opportunity for the development of tourism.”
Conclusion
The regulation of the casino business within a legal framework can be seen as the beginning of a qualitatively new phase in Azerbaijan’s economic governance and tourism policy. This decision is not merely about the liberalization of the entertainment sector; it also holds strategic significance in terms of diversifying the non-oil economy, creating new revenue streams for the state budget, and revitalizing the service industries.
Global and regional experience shows that the casino business, in addition to increasing tourist inflow, drives inclusive economic growth across various sectors such as hospitality, catering, transportation, agriculture, and retail.
If Azerbaijan’s move in this direction is accompanied by proper regulation and a transparent licensing mechanism, it can significantly contribute to the revitalization of the domestic market and enhance the country's appeal as an international tourism destination.
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