Russia’s Finance Minister Anton Siluanov has approached President Vladimir Putin with a proposal to consider legalizing online casinos, local media report.
According to the Ministry of Finance, a special operator could be established for this purpose, which would direct at least 30% of its revenue to the federal budget. If the initiative is approved, annual budget revenues could reach around 100 billion rubles ($1.33 billion).
At the same time, the shadow online gambling market is estimated at over 3 trillion rubles ($39 billion) annually.
Anton Siluanov also submitted proposals to update the regulation of the gaming market. The letter mentions the possibility of lifting the ban on creating and operating online casinos under certain conditions. These include appointing the operator by a special presidential decree upon the government’s recommendation, as well as implementing a system for accepting bets through the Unified Center for Accounting of Bets Transfers, following the model used by bookmakers. Additionally, the Ministry of Finance proposes a tax of at least 30% of revenue, excluding winnings paid out, which the operator would transfer to the budget on a monthly basis.
Currently, online casinos are prohibited in Russia, and only licensed bookmakers and totalizators are legally allowed to operate online gambling. According to the Ministry of Finance, the volume of this segment in 2024 is estimated at 1.7 trillion rubles ($22 billion).
Legal gambling in Russia is restricted to designated gaming zones: “Krasnaya Polyana” in Sochi, “Yantarnaya” in the Kaliningrad region, “Primorye” in Primorsky Krai, “Sibirskaya Moneta” in Altai Krai, and “Zolotoy Bereg” in annexed Crimea.
Tax administration for online casinos is planned through the Unified Gambling Regulator (UGR) . The Ministry of Finance also recommends setting a minimum user age of 21. The online casino operator and UGR would be given responsibilities for preventing gambling addiction. At the same time, the Ministry of Finance, together with other federal authorities, the Central Bank, and UGR, will take measures to block illegal casino websites and restrict money transfers to their operators.
From a market perspective, the legalization of online casinos in Russia could have a positive effect, says Yuri Ermantraut, Executive Director of the bookmaker company BetBoom. “This is a step toward global practice, where different segments of gambling strengthen the industry, enhance its transparency, and maturity. In this sense, we see not a risk of losing players but a potential stimulus for the systemic development of the industry,” he explains.
Estimates suggest that deposits in illegal online casinos reach up to $2 billion per month. “As a result, targeted contributions of 2.25% of deposits are lost, which amounts to about $600 million per year, or roughly 50 billion rubles, which could have been used to support national, youth, and mass sports in Russia,” adds Yuri Krasovsky, President of Liga Stavok.
According to Alexander Paramonov, CEO of Fonbet, achieving this effect may require a partial outflow of the audience from legal bookmakers, who currently use illegal casinos alongside betting. However, if the online casino market becomes transparent, regulated, operates under uniform rules, and provides social and tax benefits to the state alongside legal gambling operators, “we welcome such initiatives,” he added.
Vasily Riy, Executive Director of the Association for the Protection of the Rights of Participants in Gambling and Lotteries, believes that social risks, particularly the growth of gambling addiction, must be considered and minimized when legalizing online casinos. “Casino games traditionally attract far more participants than other types of gambling,” he notes. According to him, uncontrolled expansion of this activity must be prevented through the creation of a single operator and strict monitoring of online game promotion channels. This should prevent alternative access points, such as computer clubs or other venues that allow bypassing official channels, Riy explains.
He also suggests implementing player risk profiles, bet limits, and time restrictions on the site.
“Legalizing online casinos is one of the tools to combat the illegal market, but not the only one. Experience from many countries shows that without proper government control, the effect can be the opposite,” adds Riy.
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