Reports are emerging from Russia that suggest the country could be set to legalise online casino.
According to the Russian news network, Kommersant, the country’s Finance Minister, Anton Siluanov, has put forward a proposal to President Vladimir Putin to end the current prohibition on the sector in Europe’s largest country.
The allure of the economic boost that awaits the country should they follow through with the decision would be significant, specifically at a time of such strain on the country’s coffers.
Included in the proposals is an initial tax rate of 30% for operators, projected to generate the state over 100bn (£952m) rubles annually. If implemented, this taxation model would immediately place Russia in the top echelons of taxation in Europe, sitting alongside established markets such as the UK and the Netherlands.
The regulated sector would be overseen by the country’s Unified Regulator of Gambling (URAG), and the Finance Ministry proposes that any transactions through online operators would pass through the Unified Centre for Accounting of Betting Transfers, as is currently required for bookmakers.
Currently, land-based casinos are able to operate in a number of specialised gambling zones, and bookmakers are able to offer retail and online sports betting.
The Ministry of Finance estimates that Russia’s regulated gambling sector is worth approximately 1.7trn roubles (£16.2bn) annually.
Meanwhile, online casinos currently flourish in the country through a black market that is worth over 3trn (£28.6bn) rubles each year, despite the efforts of the authorities to thwart the sector.
In April, the Russian Civic Chamber stepped up efforts to shut down online gambling websites and also target crypto payment providers that support the black market.
Evgeny Masharov, a key member of the Russian Civic Chamber, told the Russian news outlet TASS at the time: “The problem of illegal gambling can be solved in two ways: the first is blocking websites and applications, the second is blocking payments in cryptocurrency.
“Gamification has become a trend, while the simplicity and convenience of the game attract new users. The legal market of bookmakers loses to illegals, as the latter do not have requirements for identification and age verification.”
The figures surrounding the black market demonstrate the current appetite for online casino gaming in Russia, and any opening of the market would present a significant opportunity for operators, given Russia’s population of almost 146 million.
In addition, regulation also brings greater control, and the new proposals reportedly include requirements for online operators to implement tools to prevent gambling addiction, as well as a minimum player age of 21.
