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Russia Explores Potential Legalization of Online Casinos

Russia Ministry of Finance is reportedly considering the legalization of online casinos as part of a broader effort to combat illegal gambling and boost federal revenues. This move would represent a significant change in the country’s gambling landscape, where online casinos are currently banned.

The Finance Ministry has put forward a proposal that envisions a state-controlled model for online gambling. According to reports from Kommersant, Finance Minister Anton Siluanov has sent a letter to President Vladimir Putin outlining a framework for legalizing online casino operations under strict government oversight. The plan includes establishing a unified online casino regulator, appointed by presidential decree following recommendations from the government.

Under this proposed system, all betting transactions would be processed through Russia’s Unified Betting Transfer Accounting Centre, which is similar to the existing system used by licensed bookmakers. The Ministry of Finance believes that this arrangement would enhance transparency, improve oversight, and encourage players to shift away from the illegal gambling platforms that currently dominate the market.

Taxation is a key component of the proposal. The ministry suggests imposing a minimum tax rate of 30% on online casino revenue after winnings are paid out, with the collected taxes transferred monthly to the state budget. The administration of these taxes would fall under Russia’s Unified Gambling Regulator, known as ERAI. Officials estimate that a regulated online casino market could bring in around ₽100 billion (€1.1 billion) annually for the federal government. To put this into perspective, the legal online gambling sector, which includes bookmakers and prize draw operators, generated approximately ₽1.7 trillion (€16.4 billion) in 2024. Meanwhile, the illegal online gambling market is believed to exceed ₽3 trillion (€32 billion) annually, with around 100 unlicensed online casinos operating within the country.

The proposal also emphasizes consumer protection and measures to mitigate market risks. Access to online casinos would be restricted to individuals aged 21 and over, raising the minimum age from the current 18 for land-based gambling zones in Russia. Operators, in collaboration with ERAI, would be required to implement safeguards aimed at preventing gambling addiction and promoting responsible gaming.

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In addition, the plan involves strengthened enforcement efforts, including blocking illegal casino websites and banning financial transactions linked to unlicensed operators. These measures would involve federal authorities, the Central Bank, and the gambling regulator working together to curb illegal activities.

While some representatives of major bookmakers view this proposal as a move toward establishing an internationally recognized regulatory model, gambling policy experts have cautioned that legalization alone is not enough. They emphasize that online casino games tend to attract a broader audience and therefore require strict limits on promotion, spending, and session durations to prevent social harm. Overall, the proposed reforms reflect Russia’s cautious but potentially transformative approach to online gambling regulation.

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