Azerbaijan’s parliament has approved legislation authorising the development of casino resorts but only on artificial islands in the Caspian Sea as reported by SBC Eurasia.
The Milli Majlis gave final approval to the bill to legalise casino operations exclusively on “man-made artificial land” within Azerbaijan’s maritime zone.
The move forms part of a broader strategy to attract foreign tourism, boost tax revenues and reclaim gaming spend currently flowing abroad or into unregulated online markets.
“This is a measured and strategic reform,” Parliament noted, arguing the new framework will help curtail the underground gambling market while stimulating entrepreneurship in a controlled environment.
From Zero to Offshore Hero
Since 1998, Azerbaijan has operated under one of the strictest gambling bans in the region, enforced by presidential decree. Land-based casinos, slot halls and online gambling have remained firmly off-limits.
Only state-run lotteries and licensed sports betting via TOPAZ powered by Scientific Games in partnership with Turkish investment fund Demirören Holdings, are currently permitted under Azerbaijan’s gambling laws.
The new law does not dismantle that restriction. Instead, it carves out a geographically limited exception: casino gaming is now legal only on artificial islands constructed in the Azerbaijani sector of the Caspian Sea.
The legislation follows the adoption of the May 2024 Law on Artificial Territories, which defined the legal basis for creating and developing artificial land for commercial use. That framework now enables licensed operators to pursue resort-style casino developments, subject to strict regulatory oversight and licensing controls.
Agalarov’s Gamble
Public interest surged in late 2024 when Emin Agalarov—entrepreneur, singer, and former son-in-law of President Ilham Aliyev announced plans to build a casino at his high-end Sea Breeze complex on the Caspian coast.
Though the site itself is not on an artificial island, the move sparked renewed national debate over the future of gambling in Azerbaijan.
Agalarov’s public pitch, alongside a surge in pro-casino editorials in local media, appears to have accelerated the legislative process. While land-based gambling on the mainland remains strictly prohibited, the offshore model has won government support as a compromise between economic opportunity and social conservatism.
The law establishes the legal and organisational basis for licensing casino activity on artificial land, including construction permissions, investment incentives, and operational guidelines. Casinos must be state-licensed, adhere to anti-money laundering and financial transparency requirements, and be restricted to customers aged 21 and over.
While no operators have yet confirmed their bids, the market’s early foundations are already visible. Scientific Games’ presence in the country—via its 10-year software agreement with Demirören Holding to support Azerbaijan’s Azerlotereya sports betting and lottery operations—positions it as a frontrunner for future casino technology partnerships.
New Outlook
Azerbaijan’s cautious return to casino gaming is not a full liberalisation, but a focused play aimed at repatriating gambling revenue and luring international investment without compromising domestic values. Whether the Caspian islands can become a “mini-Macau” or simply a niche experiment in regulated expansion remains to be seen.
Attention will turn to which international operators will step forward to pitch for the first casino licences on the Caspian’s artificial islands. Industry observers will be watching closely to see whether Azerbaijan’s model can position the country as another so-called gateway to East Asian gaming market to bridge Europe, Central Asia and the Middle East through a uniquely strategic offshore offering.
