Armenia is not usually the first jurisdiction mentioned in discussions about global gaming hubs. Compared with Malta, Curaçao and Gibraltar, Armenia has largely remained under the radar. Yet its market structure is becoming increasingly difficult to ignore: a highly accessible B2B ecosystem operating alongside one of the region’s most tightly controlled B2C gaming environments.

As Mesrop Manukyan, founding partner at Armenian law firm MBLegal, explains: “The market is characterised by a strong and growing B2B presence, alongside a smaller, tightly regulated B2C segment.”

The defining feature of Armenia’s gaming ecosystem is not what is regulated, but what remains largely unrestricted. For B2B companies, there is currently no dedicated licensing framework. Businesses are not required to obtain gaming-specific approvals and instead operate under standard corporate and financial compliance requirements, primarily AML and KYC regulations.

“This means barriers to entry are minimal,” says Manukyan. In practice, Armenia has created one of the industry’s lowest-friction environments for gaming-related technology and service providers.

As a result, international companies have increasingly used Armenia as an operational base. Some firms already hold licences in jurisdictions such as Curaçao or Anjouan but rely on Armenia for software development, payments infrastructure, risk management and back-office operations. Others are fully headquartered there, benefiting from lower costs and regulatory simplicity.

Over the past year alone, more than 20 companies reportedly relocated to Armenia, with some bringing workforces of 1,000 to 1,500 employees. For a relatively small economy, the impact is significant. According to World Bank data, Armenia’s GDP reached approximately US$26 billion in 2024, making gaming-related services an increasingly visible contributor to the economy.

The country’s strong domestic technology ecosystem has also supported this growth. OECD data shows information and communication technology already accounts for 4.5% of Armenia’s GDP, while local industry reports estimate the wider high-tech sector generated more than US$3.1 billion in output during 2024. The gaming industry is becoming deeply integrated into that ecosystem.

Dominated by a Few Giants

The contrast with Armenia’s B2C market is substantial. Operators targeting local users face a licensing system that is intentionally restrictive and expensive.

Annual licence fees currently stand at around US$1.5 million following a major increase in early 2025. Although licences remain valid indefinitely, operators must maintain ongoing compliance and continue making payments. Additional taxes also apply, including revenue-linked obligations and broader corporate taxation.

In practice, this has produced a highly consolidated domestic market. “We haven’t really seen many smaller operators in the B2C space,” says Manukyan. High entry costs mean only large, well-capitalised companies can realistically participate.

Today, Armenia has only around five licensed B2C operators. Despite their limited number, they play a major economic role, with four or five companies consistently ranking among Armenia’s top 10 taxpayers.

Two companies dominate the B2B landscape: BetConstruct and Digitain. BetConstruct’s parent company SoftConstruct reports more than 6,000 employees, 16 branch offices and over 300 partner organisations globally. Digitain employs more than 5,000 people and operates across more than 20 licensed markets worldwide with over 150 partners.

These companies are not merely local success stories; they are major global suppliers, helping explain Armenia’s growing visibility within the international gaming technology supply chain.

Growth and Friction Beneath the Surface

The scale of Armenia’s gaming economy becomes clearer through broader market figures, although these numbers primarily reflect turnover and player deposits rather than operator profits.

Parliamentary discussions indicate gaming-related turnover rose from AMD14 billion in 2010 to AMD6.3 trillion in 2023. In 2024 alone, more than AMD811 billion was reportedly deposited into online entertainment platform accounts.

Despite its appeal for B2B firms, Armenia’s ecosystem is not without challenges. The most common criticism relates to financial infrastructure.

Payment processing costs remain relatively high compared with more established hubs such as Malta, while integration options are more limited. “The infrastructure for integrating payment systems is not as flexible or customisable as operators would like,” says Manukyan. As a result, many companies still maintain banking relationships abroad for greater operational flexibility.

The banking sector also acts as a strict gatekeeper. AML enforcement is rigorous, especially during account onboarding. Opening accounts can be difficult, particularly for foreign-owned gaming companies. While this creates operational friction, it also reduces exposure to illicit activity.

Digital Asset Regulation Opens New Opportunities

One of Armenia’s most significant recent developments involves digital asset regulation. Historically, the Central Bank adopted a cautious stance towards digital asset-related activities within the gaming sector.

That position has shifted. Since January, Armenia has introduced a digital asset licensing framework, and demand has reportedly been strong. “In the past three months alone, we’ve applied for six digital asset licences, four of which were for gaming companies,” says Manukyan.

He explains that the shift reflects broader changes in regulatory attitudes, driven partly by new leadership at the Central Bank, which appears more open to innovation than previous administrations.

At the same time, Armenia is moving toward stronger oversight of gaming activity itself.

Recent legislative proposals include a centralised national monitoring system capable of tracking all transactions across online and land-based gaming platforms in real time. A single national operator would manage the platform, while authorities would gain direct access to data relating to activity, wins and losses.

Officials argue the system is intended to improve tax enforcement and strengthen oversight of an industry associated with rising social concerns.

However, critics argue that limiting legal challenges to the system could reduce judicial oversight, even as authorities prioritise rapid implementation.

Growing International Interest

Despite its relatively small size, Armenia is increasingly functioning as a regional gaming technology hub.

Local operators have expanded into neighbouring markets including Georgia, Iran, Turkey, Azerbaijan and Russia. Meanwhile, companies from the Philippines, China, Mexico and Brazil are reportedly exploring entry into Armenia, viewing a local presence as both an operational advantage and a reputational signal.

Manukyan also expects additional inflows from companies relocating due to tighter regulations in other jurisdictions.

A Market Still in Transition

Despite its growth, Armenia’s market still retains early-stage characteristics. Parts of the ecosystem remain informal, with uneven expertise levels and occasional reliance on inexperienced advisory structures.

Manukyan describes this as part of a natural transition phase.

“It’s still somewhat of a ‘wild west’ environment in that sense, but this should improve over time as the market matures,” he says.

A Hub Defined by Contradictions

Armenia’s appeal lies in its contradictions. It combines one of the least restrictive B2B gaming environments with one of the region’s most expensive and tightly regulated consumer-facing markets.

The country remains highly accessible to international service providers while simultaneously moving toward more centralised and data-driven oversight.

Whether that balance can continue will depend on how Armenia manages growing tensions between innovation and regulation, openness and control, and economic growth and compliance.

For now, however, the model appears to be working, particularly for B2B operators.

As Manukyan concludes, Armenia is “arguably one of the best jurisdictions available” for B2B gaming services.

And in an industry constantly searching for efficient operational hubs, Armenia’s unusual formula is becoming increasingly difficult to ignore.