ARMENIA Law and Practice Contributed by: Roustam Badasyan, Artur Manukyan, Marianna Grigoryan and Davit Baklachyan, Badasyan Consulting LLC
10. Acquisitions and Changes of Control 10.1 Disclosure Requirements Under Armenian law, any individual or entity acquiring a significant participation (10% or more) in a gambling organiser must undergo a fit-and-proper assessment by the Competent Authority before the acquisition. Organisers must submit information on new signifi- cant participants, including evidence of the lawful origin of funds. The regulatory authority must review the application within one month (extendable by an additional month once), and a positive conclusion is required before the change of control takes effect. Government Resolution No 348-N outlines the pro- cedure and the required documents for acquiring a significant participation in a gambling organiser. 10.2 Change of Corporate Control Triggers Under the Gaming Law, a change of corporate control is triggered by: • acquisition of 10% or more of the organiser’s char- ter capital; or • appointment of new responsible persons who manage or oversee gaming operations. 10.3 Passive Investor Requirements Passive investors are subject to the same fit-and- proper assessment as active participants, as there is no specific exemption applying to such investors. They must provide documentation verifying the lawful origin of funds and are subject to restrictions if they fall within disqualifying categories (criminal convictions, bankruptcy, prior involvement in revoked licences, or disqualification from financial/management roles). Approval from the regulatory authority is required before the acquisition is effective.
• a warning accompanied by an instruction to rem- edy the identified violations; or • a fine. If the Supervisory Authority identifies grounds for suspending or revoking a licence, it submits a writ- ten request to the Competent Authority, providing all necessary documents for initiating the relevant pro- cedure. In turn, where a violation of the Law is established, the Competent Authority may impose the following measures on the organisers of gaming activities: • suspension of the licence; or • revocation of the licence. Additionally, the sale of lottery tickets is subject to location-based restrictions. In particular, tickets may not be sold within 500 metres of the place where win- nings are displayed. Breaches of this requirement are subject to administrative fines, imposed by the local self-government authorities in Yerevan or by the regional administrations in the provinces. 11.2 Sanctions Warnings The Supervisory Authority may, through on-site inspections or documentary reviews, identify breach- es of the Gaming Law and issue a warning to the organiser. The warning includes a binding instruction to remedy the breach within the prescribed timeframe or to take preventive measures against future viola- tions. This measure applies to breaches of reporting and disclosure obligations (including monthly report- ing on gaming activities and lottery operations), as well as certain premises requirements, such as vis- ibility from outside, the installation of fire and security alarm systems, the display of gaming rules, and video surveillance. Fines Fines are imposed for more serious breaches at fixed rates, as outlined in 11.3 (Financial Penalties) . Suspension Licences may be suspended for violations relating to responsible persons or significant participants, the
11. Enforcement 11.1 Powers
Where the provisions of the Gaming Law are violated, the Supervisory Authority may impose the following sanctions on the organisers:
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