Baku: Hundreds of Azerbaijani citizens travel abroad annually to enjoy casino entertainment, funneling financial resources to foreign markets and missing opportunities for economic growth at home. As regional countries capitalize on casino tourism, Azerbaijan is exploring the potential benefits of legalizing its own casino industry.
According to Azeri-Press News Agency, implementing a robust legal framework and strict control mechanisms could transform casinos into significant financial and tourist attractions for Azerbaijan. The casino industry in countries like the United States and China exemplifies the economic potential, with the U.S. generating over $60 billion in revenue in 2023 and Macau contributing $22.7 billion in gross gaming revenue. In the South Caucasus region, Georgia's liberalized casino sector has also seen substantial growth, contributing to its state budget and employment.
Currently, Azerbaijan grapples with financial pyramids and illegal casinos that undermine the economy and lead to personal financial losses. Legalizing and regulating casinos could formalize the informal economy and increase tax revenues. Economist Eldaniz Amirov emphasizes the importance of creating mechanisms to prevent money laundering, noting the economic potential of legalized casino activities to boost tourism and entrepreneurship.
The geographical advantages of Azerbaijan position it as an attractive destination for casino tourism, especially for visitors from Arab countries and the CIS region. Economist expert Khalid Karimli advocates for legalizing casinos, highlighting the significant outflow of tourists and financial resources to countries like Georgia and Russia. Legalized casinos could enhance Azerbaijan's tourism, entertainment, and hospitality sectors, preventing local currency outflow and attracting foreign visitors.
The formation of 'casino hotels' could stimulate an economic ecosystem, benefiting various service sectors and promoting entrepreneurship. Samir Dubendi, Chairman of the Azerbaijan Hotels and Restaurants Association, suggests revisiting global experiences and establishing regulation mechanisms to guide the industry. The strategic placement of casinos away from educational institutions and city centers is crucial to minimize negative impacts.
Tourism expert Jeyhun Ashurov points out that legalizing casinos could increase Azerbaijan's tourism potential and generate additional income. Previous discussions have considered creating casino opportunities in areas like Sea Breeze. Proper management of casino operations can provide a strong economic stimulus without compromising societal well-being.
In conclusion, legalizing casinos in Azerbaijan could create a new revenue stream, bolster the non-oil sector, and reclaim financial and tourism potential currently lost to foreign markets. The process requires a responsible, transparent, and socially-aware approach to maximize benefits and minimize risks.