As early as April, Russia may announce the start of a legislative process to legalize online casinos. According to Vyberu.ru, citing a representative of a leading bookmaker, the government is looking for ways to plug a hole in the budget.
For now, this is not a final decision but rather a proposal from the Ministry of Finance, accompanied by market rumors. Presidential Press Secretary Dmitry Peskov said in late January that the Ministry’s proposal “would be further developed.” Still, the authorities do have a working idea: the Ministry, led by Anton Siluanov, proposes creating a special operator, processing payments similarly to bookmakers, and levying a tax of at least 30% of the platform’s Gross Gaming Revenue (GGR) – essentially the platform’s winnings from players. This would bring an estimated RUR 100 bln ($1.2 bln) per year into the federal budget.
If this scenario goes forward, the market will almost certainly grow, experts say. Some players will simply migrate from ‘gray’ foreign platforms to the legal segment, but easy and secure access could also expand the overall audience. The Ministry of Finance currently estimates the legal betting market at RUR 1.7 tln ($20.9 bln) by the end of 2024, while the illegal online gambling segment is worth more than RUR 3 tln ($36.9 bln) annually.
This is why supporters of the reform believe that the state is currently losing both tax revenue and control over cash flows. At the same time, the social risks also appear significant: according to a February survey by the Russian Public Opinion Research Center, 55% of Russians are against the legalization of online casinos as they fear the rise in gambling addiction.
On the other hand, authorities are also building a system of restrictions: the Ministry of Finance previously proposed allowing access to online casinos only from the age of 21, and starting September 1, 2026, a self-ban mechanism for gambling is set to take effect in Russia. Moreover, in February, the State Duma approved in the first reading a bill banning the use of credit cards for betting and prohibiting gambling establishments from being located near microfinance organizations. In other words, at least formally, regulators are trying not to expand credit for gambling addiction but rather to put up some obstacles.
Experts believe the reform is unlikely to grant permission for casino advertising automatically. Separate amendments would be required for that, especially since the State Duma is simultaneously discussing initiatives to tighten gambling advertising regulations rather than liberalize them.