Russian Finance Ministry Seeks State Control in Online Casino Legalisation
Russian Finance Ministry Seeks State Control in Online Casino Legalisation
The Russian Ministry of Finance has put forward a proposal to the President, seeking to legalise online casinos. The plan involves lifting the current ban under a set of conditions aimed at enhancing regulation and state control. A dedicated operator would oversee online casino operations and ensure a robust stream of tax revenue into the state budget.
The Proposal in Detail
According to the Ministry's recommendations, the operator of online casinos would be appointed by the President, based on government suggestions. The process of accepting bets would utilise a Centralised Bet Accounting Centre, mirroring the model used by bookmakers. Additionally, the proposal includes a tax of at least 30% on revenue after deducting payouts, with monthly transfers to the state budget.
The tax administration for online casinos would be managed by the Public Law Company 'Unified Gambling Regulator'. Key stipulations also include an age restriction for players, necessitating a minimum age of 21. The Ministry of Finance estimates that legalisation could yield around 100 billion rubles annually for the federal budget.
Implications and Industry Response
Beyond facilitating regulation, the proposal aims to address gambling addiction and bolster the blockade of illegal sites. However, experts stress the need for stringent state oversight and the implementation of responsible gambling measures, such as betting limits and session duration controls, to mitigate social risks.
Source: reg2bet Telegram
Concerns from R2B.News
Amidst the proposal's announcement, R2B.News channels reported a mixed reception. While some express enthusiasm, concerns prevail among those handling RU traffic. Historically, regulation has not boosted affiliate earnings in any jurisdiction, as offshore iGaming operators heavily rely on affiliate programmes to drive traffic.
The Russian government is unlikely to foster a competitive gambling market but instead may consolidate operations among a few, or even a single, operator closely aligned with state interests, akin to the operation of state lotteries, which do not rely on affiliate programmes but instead use more cost-effective media advertising for traffic.
Should affiliate programmes arise, low commission rates coupled with mandatory KYC processes could deter affiliates, alongside the anticipated deductions of taxes from affiliate commissions. Concurrent measures may intensify penalties for offshore iGaming operators. The underlying goal of this reform is to bolster the state budget amid escalating government expenses.
