Legal casinos in Azerbaijan, age verification in the EU and new MGA requirements
The European Union is strengthening protections for minors in online gambling, Azerbaijan is legalizing casinos on artificial islands in the Caspian Sea, and Malta is updating capital requirements for operators.
The European Union tightens age verification requirements in iGaming
The European Commission recently updated its regulations for iGaming operators to enhance protection for minors, recognizing online gambling as a significant risk to children's wellbeing. The principles, published on July 14 and developed as part of the Digital Services Act (DSA), state that simply confirming age when registering is no longer sufficient. Companies are now obligated to implement comprehensive verification systems to prevent minors from accessing gambling.
The new requirements also include a complete ban on the sale of loot boxes to children, protection of users from manipulative interfaces, and strict rules for influencer marketing in the iGaming sphere. While compliance with these regulations is technically voluntary, the European Commission will use them as a benchmark to check platforms' compliance with the DSA's mandatory provisions, effectively making them mandatory.
Looking ahead, the EU plans to introduce its own age verification technology solution integrated into the pan-European EU Digital Identity Wallet. This will establish a unified, secure verification mechanism for all digital services throughout the union.
Azerbaijan legalizes casinos on islands in the Caspian Sea
The Parliament of Azerbaijan has passed a law allowing casino activity for the first time since 1998. According to the new rules, gambling establishments will be permitted to operate only in specially designated zones on artificially created areas in the Caspian Sea. This decision marked a significant shift in the state's policy regarding gambling, which had been prohibited for over 25 years.
Lawmakers believe that these casinos will contribute to the development of tourism, job creation, and growth of tax revenues. Authorities have observed that a significant number of Azerbaijani citizens now engage in gaming activities on foreign online platforms or travel to other countries to visit casinos. The new law will permit the return of these funds to the economy and will help to reduce the level of illegal gambling.
Operators will require a license to conduct business in designated gambling zones. The annual fee is set at 340,000 manat (approximately $200,000). Casinos are exclusively accessible to individuals over the age of 21. Prior to the enactment of the law, only state lotteries and licensed bookmakers were permitted in the country.
MGA updates capital requirements for operators
The Malta Gambling Authority (MGA) announced an update to the financial stability requirements for iGaming operators. The minimum authorized capital remains unchanged: €40,000 for B2B and €100,000 for B2C. The primary innovation is the requirement for all operators to maintain positive working capital at all times. In the event that a deficit is identified, a six-month timeframe is allocated for its restoration.
There are provisions for B2B companies, including the allowance of negative capital up to €3 million, though the MGA retains the right to demand earlier recovery. Operators ending 2024 with negative capital are granted a grace period of up to five years to bring their finances into alignment with the new requirements.
Companies with a deficit in excess of €1 million receive particular attention. In such cases, a recapitalization plan must be developed and submitted to the MGA by November 30, 2025.
