Russian State Duma Considers New Bookmaker Rules

The Russian State Duma is deliberating major regulatory changes for legal betting operations. These discussions are considering everything from payout procedures to a substantial increase in the tax burden for betting companies.

Proposed Changes

A key legislative proposal requires bookmakers to immediately pay out winnings after each bet is settled. This would see funds transferred directly to a bank account or wallet, instead of accumulating in player accounts. This provision is being reviewed in the second reading of the bill regarding the player self-exclusion register and may soon be adopted.

Practical Consequences

Increased Bookmaker Costs

Immediate payouts could significantly escalate transaction load through the central payment operator, TSUPIS. An increase in such operations means higher fees, which market participants believe could become financially unsustainable for bookmakers.

Tax Changes

Starting in 2026, bookmakers will face a 7% tax on Gross Gaming Revenue (GGR) and a 25% overall corporate profit tax. The combined tax burden could rise dramatically, challenging the competitiveness and profitability of the legal business model. Consequently, operators are reevaluating budgets, cutting marketing efforts, and reducing sponsorship contracts.

Main Consequences of Amendments

Higher Costs for Players

To counterbalance taxes and costs, bookmakers may increase margins, offer less favourable odds, and pass transaction fees onto users. This shift could make illegal betting markets more attractive to Russian players.

Growth of the Illegal Market

Players may migrate to unlicensed platforms, which reduces the state's tax revenue and oversight capabilities. Risks for players would rise due to a lack of payment guarantees and legal protections.

Impact on Sports Funding

Legal betting has been a crucial funding source for Russian sports federations and leagues. Andrey Kirilenko, President of the Russian Basketball Federation, notes that contributions from bookmakers have plummeted roughly fortyfold. Less profitable sports, highly dependent on bookmaker funds, are most affected by these funding cuts.

Adopting these amendments could pressure the legal betting market, deteriorate conditions for operators and players, and undermine sports funding. Over time, this may create a more favourable environment for the illegal sector, adversely affecting both the state budget and the entire sports system.

Source: igamingceo Telegram

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