Turkey has amended regulations regarding games of chance, as
well as related license agreements. Changes apply to exclusivity of
licenses and restrictions on license assignments, as well as
clarification on use of subcontractors. Changes also apply to
consents required from the General Directorate of the National
Lottery ("Directorate") for share
transfers and changes to partnership structures, as well as removes
appeal processes in certain license termination circumstances.
The Regulation Amending the Licensing of Chance Games,
Regulation and Control of Licensed Activities Regulation
("Amendment Regulation") was published
in Official Gazette number 29671 on 1 April 2016, entering into
effect on the same date.
Significant changes introduced by the Amendment Regulation
During the license term, the licensee
is now exclusively entitled to operate the licensed games of
Licenses cannot be assigned, either
in whole or in part. However, the Amendment Regulation provides
that the operation and support services received by licensee will
not be deemed to be an assignment of license, nor will changes to a
licensee's partnership structure which are in line with the
Clarification that games of chance
are prohibited from being completely or partially carried out by
Introduction of a provision
prohibiting the Directorate from organize the licensed games of
chance, or giving another license for such games, during the
During the license term, the
Directorate's consent is now required to change partnership
structure, as well as directly or indirectly buy and sell 10% of
shares or more, or transfer shares causing transfer of the
License agreements enter into force
on signing by the Directorate of Privatization Administration, the
Directorate and the successful tenderer licensee. Previously, the
Council of State's consent was also required.
If a licensee hides income during the
license term on three occasions, license agreement can now be
terminated without appeal.
If certain circumstances in Article
19 exist, license agreements can now be terminated without
If a license is terminated, the
Directorate is entitled to operate or use the licensee's
central game system, network, terminals, equipment, or software,
along with all their components. Before the Amendment Regulation,
the intellectual and industrial property rights were also
transferred to the Directorate. The licensee cannot restrain use of
these rights nor demand payment for the Directorate's use of
Please see this link for full text of the Amendment
Regulation (only available in Turkish).
Information first published in the MA | Gazette, a fortnightly legal update newsletter
produced by Moroğlu Arseven.
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