Gambling laws in Turkey

DISCLAIMER: The Turkish Criminal Code (“TCC”) defines gambling as “a game played for the purposes of earning benefit where the profit and loss is a matter of luck” and as per the TCC providing a venue and opportunity for gambling is forbidden. Additionally, Turkish Misdemeanour Law imposes administrative fines on those who gamble. Betting, betting on horse racing and games of luck are on the other hand regulated and can be operated within the provisions of related regulations. These questions are answered only regarding betting, betting on horse racing and games of luck, because of the restrictions under the TCC and Turkish Misdemeanour Law.

Yes.

Although providing a venue and opportunity for gambling is forbidden, various activities similar to gambling can be operated within the legal framework.  Betting and games of luck are allowed and regulated by the Law on the Regulation of Betting and Chance Games in Football and other Sports Games. 

Under Turkish law, “games of luck” and “games of fortune” have particular definitions. Whilst games of luck comprise any game that is played in return for cash such as a lottery and scratch cards, games of fortune are defined as “a type of game played online by means of playing instruments and based on skill and fortune against a vault/bank or gaming machines” and are forbidden. 

Betting on horse races is allowed and regulated under the Law on Horse Racing. The fact that betting on horse races is regulated under its specific regulations differentiates it from other betting activities and it may be subject to other provisions.  

Yes.

Under Article 228/3 of the TCC, it is forbidden to provide a venue and opportunity for gambling through using information systems. Additionally, the Regulation on Online Games of Fortune forbids the online operation of games of fortune. The Turkish National Lottery Administration reports any online gambling website and informs the Technologies and Communication Authority in order to block access to these websites.

Online betting, online horse betting and games of luck are on the other hand regulated and allowed under relevant regulations. 

A. Regulation on Mutual and Fixed Odds Betting on Sports Matches regulates online betting.
B. Regulation on Mutual Betting on Horse Racing regulates online horse racing betting. 
C. Games of luck including tile-matching video games can be legally played online through the website of the national lottery. 

Yes.

Turkish National Lottery Administration (the “Administration”), Turkish Spor Toto Organisation, Jockey Club of Turkey

Yes.

Regulation on Commercial Advertisements and Unfair Commercial Applications prescribes that advertising for illegal betting and gambling is prohibited. 

Yes.

To operate games of luck, betting and betting on horse racing activities, a company established under Turkish Commercial Code is required. To operate betting activities, Turkish companies can form a joint venture with foreign companies. 

Yes.

A joint stock company established in accordance with the Turkish Commercial Code is required to operate games of luck. 

Yes.

No.

Yes.

A company’s paid-up capital should be at least TRY 5 million (EUR 275,855) to operate games of luck.

Yes.

Yes.

Companies operating games of luck should obtain the permission of the Administration for all changes to their shareholding structure. Any assignment of shares made without the permission of the Administration cannot be registered in the share ledger and is deemed invalid.

Companies operating betting activities should obtain the permission of the Turkish Spor Toto Organisation for all changes to their shareholding structure.

Companies operating betting on horse racing activities should obtain the permission of the Jockey Club of Turkey for all changes to their shareholding structure and assignment of shares.

Yes.

A. Games of Luck

Under the privatisation of national lottery operation, a games of luck licence includes only the licence that transfers the rights to plan and organise games of luck, execute draws, install systems of games of luck, and operational activities. In 2017, the Administration transferred the licence to operate games of luck activities to the Turkey Wealth Fund for 49 years. The Turkey Wealth Fund is entitled to make agreements with third parties to operate games of luck. Turkish or foreign companies can participate the tenders arranged by the Turkey Wealth Fund to operate the games of luck through a service procurement agreement. Currently, there is a ten-year agreement that entered into force in 2020, between the Turkey Wealth Fund and a Turkish joint stock company.   

B. Betting on Horse Racing

The licence to operate betting on horse racing activities through a bookmaker is obtained from the agents of Jockey Club of Turkey. TRY 75,000 (EUR 4,150.00) cash or TRY 75,000 value of a letter of guarantee is requested from horse racing bookmakers.

C. Betting

The licence application to operate betting activities through a bookmaker is made to the Main Bookmaker. The applicants to be granted a licence are determined by lot to be held by the Main Bookmaker in the presence of a notary public. TRY 65 million (approximately EUR 3,600) as the value of the revenue warrant should be transferred to the bank account of the Spor Toto Organisation and USD 3,050.00 as the value of the terminal warrant should be transferred to the bank account of the Main Bookmaker. The licence is obtained after the requirements are met and an agreement is signed between the bookmaker, Main Bookmaker and Spor Toto Organisation.  

Gambling licensing is only issued for betting, betting on horse racing and games of luck. 

3.2.1 Betting?

Yes.

3.2.2 Sports?

Yes.

3.2.3 Skill games?

N/A.

Forbidden.

3.2.4 Card Games?

N/A.

Forbidden.

3.2.5 Casinos?

N/A.

Forbidden.

3.2.6 Lotteries?

Yes.

3.2.7 Arcades?

N/A.

Forbidden.

N/A.

Forbidden.

Yes.

Up to ten years for betting activities. 

As games of luck can be operated if a tender is arranged by the Turkey Wealth Fund and betting on horse racing licences can be obtained if the Super Toto Organisation or Jockey Club of Turkey receives applications, no period of time can be estimated.  

No.

Yes.

Games of luck, betting and betting on horse racing operators must comply with a wide range of requirements to obtain and maintain their licences. These requirements include, but are not limited to, good reputation and lack of criminal record of the operator and its directors and legal representatives, articles of association being limited to the activity addressed in the licence agreement, and a transparent corporation structure and organisation chart which will not prevent the Administration to supervise effectively. 

To obtain a licence to have authorisation for operating betting activities in a workplace, a workplace opening and operation licence should be obtained and: (i) the individual operator must be a Turkish citizen; (ii) the legal entity operator must employ at least one employee to operate the activities. 

Yes.

Law No. 5549 on the Prevention of Laundering the Proceeds of Crime is the general framework AML legislation in Turkey, and it also applies to the gambling industry. 

Yes.       

Gambling operators have the same AML/data protection-related reporting obligations as all other reporting entities under the general legal framework.

Yes.         

Law No. 6698 on the Protection of Personal Data is the general framework data protection legislation in Turkey, and it also applies to the gambling industry.

Yes.        

Law No. 6698 on the Protection of Personal Data applies to all personal data processed in Turkey, and only has extraterritorial implementation regarding data transfers to and from Turkey. 

Yes.        

The Personal Data Protection Authority [Kişisel Verileri Koruma Kurumu, (“KVKK”)]

Yes.

EUR 10,000 and more (or its equivalent in another currency) is the threshold at which an individual is required to declare the respective amount to the relevant customs directorates. 

In Turkey, whilst the prevention against foreign currency transactions is stipulated under Decree No.32 on the Protection of the Value of the Turkish Currency, the limitations on capital movements are regulated under the Capital Movements Circular. In addition, the Banking Regulation and Supervision Agency has recently enacted a decision regarding restrictions on commercial cash loans to be used by the companies depending on their foreign exchange assets.   

6.2.1 What is the approval regime and process in place?

As per the Capital Movement Circular (the “Circular”), the disbursement of loans from abroad is subject to several limitations. To prevent disbursements against the provisions of the Circular, legal entities receiving transfers exceeding USD 50,000 in all foreign currencies and TRY 250,000 for Turkish Lira transfers should submit a declaration to the receiving bank stating whether the transfer is linked to a loan issued abroad. If the legal entity does not submit such declaration, the transfer will not be completed, and returned. 

6.2.2 Must permission be sought for each transaction, or can pre-approvals take place (subject to defined limitation, or otherwise)?

No.

6.2.3 Other comments

Turkey has recently introduced several new laws and amended existing ones due to the current hyperinflation and depreciation of the Turkish Lira. Likewise, new regulations can be expected if the current financial situation continues. Therefore, please contact your local counsel for further details on capital and foreign exchange controls in Turkey.

Yes.     

Advertising betting activities and games of luck are allowed if a company has a licence to operate these activities.

Yes.   

The advertisement of both betting and games of luck activities should be in accordance with Regulation on Commercial Advertisement and Unfair Commercial Applications, which imposes several restrictions.

A. Betting Activities

The Spor Toto Organisation Presidency should be informed of the advertising, and advertisements should not encourage people under the age of 18 to make bets and should not damage the moral values of society.  

B. Games of Luck 

Advertisements should not:

• mislead the public with incorrect information about winning terms, bonuses, or the cost of participation;
• be aimed at those under the age of 18 or at-risk groups;
• reflect games of luck as an alternative option instead of working or other way out of financial difficulties;
• mislead individuals as winning is based on factors other than luck;
• associate with addictive substances, gambling and similar games prohibited by law.

Yes.         

Yes.         

There is no prohibition against using celebrities in the marketing of gambling activities; however, advertisements should be in accordance with the Regulation on Commercial Advertisement and Unfair Commercial Applications and other restrictions mentioned in 7.2. 

Yes.        

There are no specific requirements, however companies should not encourage people under 18 years old to gamble and should not damage the moral values of society.

Yes.         

See 7.2 above. 

Yes.        

Under the Law on Taxes, Funds and Public Charges Levied On Games of Luck revenues of games of luck, betting on horse races and betting activities are subject to the game of luck tax.

Mutual Odds Betting on Sports Tax. A monthly tax of 5% calculated on the total revenue. 

Betting on Horse Racing Tax. A monthly tax of 7% calculated on the total revenue.

Games of Luck Tax. A monthly tax of 10% calculated on the total revenue.

No.

Yes.

According to Provisional Article 50 of Law No.5520, legal entities and individuals transferring cash, gold, securities or capital market instruments into the country should notify the banks and intermediary institutions of these assets. Transferred assets are subject to different tax rates based on their notification period, as follows:

• from 1 October 2022 to 31 December 2022, they will be taxed at 2%
• from 31 December 2022 to 31 March 2023, they will be taxed at 3%.

However, if the notified assets are held in the relevant account for at least one year following their transfer, the tax collected for these assets will be fully refunded. 

Yes.        

The earnings and income of companies resulting from their activities in Turkey are taxed. These companies are classified as limited taxpayers. 

No.

Find out more gambling regulation related to Bulgaria in the CMS Expert Guide to online regulation in Europe.