Kazakhstan Crackdowns on Payment Services for Illegal Online Gambling

The Kazakhstan government has intensified its actions against the illegal practice of online gambling through its crackdown on the payment systems used for conducting such activities. Information reveals that over six months, the second-tier banks in the country rejected hundreds of thousands of transactions associated with the prohibited organizations and payment systems.

Read more Kazakhstan Crackdowns on Payment Services for Illegal Online Gambling

Banks Blocked Large Volumes

According to data released by Blask, second-tier banks in Kazakhstan rejected more than 400,000 transactions between October 2025 and March 2026. The transactions were tied to 110 blacklisted companies and payment providers and totalled $20.8 million, or £15.6 million.

The figures indicate that efforts to choke off payment flows have become a central part of the country’s response to illegal online gambling. In addition to the blocked transfers, 11 financial institution employees were arrested on suspicion of helping operators circumvent restrictions.

The findings suggest that there is an apparent move by the government towards stricter enforcement, where the focus has been on black market operations within the nation. This is achieved by denying access to the payment structure in order to make it difficult for such unregulated entities to operate among the citizens of Kazakhstan.

Wider Enforcement Steps

The banks have not been the only target. The government has also contacted mobile operators Tele2, Beeline, Kcell, and Activ to make sure payments are blocked in real time. That move adds another layer to the effort to limit access to illegal gambling channels.

Geoblocking has also been used to clamp down on unlicensed operators targeting citizens in Kazakhstan. Together, the banking measures, telecom coordination, and geoblocking form a broader strategy aimed at cutting off the infrastructure around the market.

Online casinos are explicitly prohibited in Kazakhstan. Online sports betting is allowed only through a small number of bookmakers, which leaves little room for broader legal online gambling activity.

The focus on infrastructure is part of a wider trend among regulators and law enforcement authorities. Rather than relying only on direct penalties, Kazakhstan is working to disrupt the systems that allow illegal gambling to function.

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Regional Enforcement Pattern

The approach in Kazakhstan mirrors a broader shift seen elsewhere, where regulators are increasingly trying to weaken the support networks used by illegal operators. The goal is not only to fine providers, but to make it difficult for them to keep operating.

Last month, Ella Seijsener, director of licensing and supervision at Kansspelautoriteit, said the Dutch regulator is seeking to move beyond fines, which have largely been ineffective against a black market that continues to grow while the regulated market stagnates. Speaking at the Gaming in Holland event, she said the aim is to break down the infrastructure around illegal providers and make it impossible for them to operate in Dutch markets.

She also said fines are almost impossible to collect and are therefore rarely paid. In her view, a more effective response involves working with hosting providers, banks, payment service providers, and marketing companies.

Land-Based Expansion

While the authorities are tightening controls on online gambling, Kazakhstan is taking a different path on land-based gaming. Local reports in May suggested that lawmakers are looking to boost the economy by expanding the number of gambling zones.

The proposed zones are focused largely on tourism areas and would be located in 4 places: Mangistau on the Caspian Sea coast, Panfilov district and Lake Alakol in Zhetysu, Talgar district in Almaty region, and the Markakol area plus Zaisan district in East Kazakhstan.

It is also reported that, alongside a range of social responsibility measures, the new zones will not be open to domestic residents. That means the government continues to keep its citizens away from the regulated gambling sector even as it considers more space for land-based development.

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Source: iGaming Expert