The Russian Ministry of Finance has submitted to the government a package of tax amendments that could seriously impact the legal sports betting business.
Dmitry Sergeev, former managing partner of Pari and CEO of Cyprus-based company 9RED, believes the proposed tax changes could make operating as a licensed bookmaker in Russia one of the most expensive in the world.
According to his calculations, from 2026 the total burden on bookmakers will amount to about 10.5% of interactive bets. This includes a new 5% gambling tax, 2.25% earmarked contributions to sports, a 1% fee for the Unified Betting Accounting System (TsUPIS), and an average of 2.25% for acquiring (payment processing). This equals nearly 45% of hold (the difference between deposits and withdrawals) or about 40% of gross gaming revenue (GGR). Additionally, companies will be required to pay a fixed 10 million rubles per month for interactive betting processing centers.
“If we remember the market slowdown to 0% year-on-year growth, which I’ve been warning everyone about, the insane media inflation, the declining interest in football, the unified self-exclusion register, the law prohibiting gambling for people with overdue loans or fines… I don’t know how the industry will cope with this,” Sergeev told RB Business.
He also noted that under these conditions, legal operators would effectively find themselves in a position close to their illegal competitors.
“The grey market for casinos and betting in Russia is recovering after yet another summer crisis, judging by the buzz at the latest Lisbon expo. Payment system fees for player deposits remain at around 10% of the amount deposited. You could say the government is equalizing conditions for the white and grey markets. Only the grey one has casinos with massive margins, while the white one is left only with quick games, which make up just 5% of all bets,” Sergeev added.
Last week, the Ministry of Finance submitted to the government a package of bills including amendments to the 2025 budget law, the draft federal budget for 2026 and the planning period of 2027 and 2028, as well as bills amending the Budget and Tax Codes.
In particular, the ministry proposed introducing for bookmakers a 5% gambling tax on accepted stakes. The Ministry also suggested introducing a 25% corporate profit tax for bookmakers.
“These measures will take into account not only turnover, but also the real financial results of companies. In addition, they will ensure transparency in the gambling business, which traditionally shows high turnover but low tax returns,” the Ministry of Finance stated.
Currently, bookmakers’ core business – accepting bets – is not subject to profit tax. Bookmakers only pay gambling tax, which applies to betting shops and processing centers.
Bookmakers also pay targeted contributions to sports in the amount of 2% of deposits. From January 1, 2026, this rate will increase to 2.25% of deposits.
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