Gambling business in Russia
Russia's gambling business is 350 years old. From 1667 the Russian government began to regulate the organization and conduct of gambling. This type of activity was one of the first to be licensed by the state authorities of the Russian Federation. In Russia, any citizen over the age of 18 can play in both land and online casinos.
Casinos and gambling halls have been banned in the country since 2009. Illegal opening of such institutions is severely punished by law. The only exceptions are lotteries, bookmakers and gambling organizers who play in authorized play areas. Today, four such zones operate in Russia and are actively developing. These are the areas where legal gambling is practiced:
"Yantarnaya" - Kaliningrad region;
Four more zones are being actively prepared for opening. All operating play zones are constantly improving the range of services offered, with a special focus on fun. Slot machines and slots are the most popular among Russians. Virtual entertainment in the form of interactive bets (slot machines, casinos and card game simulators) is legal from online games in Russia.
As for the revenue from the gambling zones to the state treasury, everything is different here. For example, Azov-City by 2015 supplemented the budget of the Krasnodar Territory by reducing taxes by 229.6 million rubles. In 2016, this zone contributed 236.5 million rubles to the local budget.
But Primorsky play zone "Primor" still does not meet the expectations of the authorities. If it is calculated that the income from his activities to the budget is 165 million rubles, then in fact this amount is only 128.5 million rubles. At the same time, according to statistics, "Primorye" is visited by about 1000 players every day, a third of whom are tourists from China and Korea.
Legislation regulating the gambling industry in Russia
Under current Russian law, almost all types of gambling are allowed in play areas. between them:
The legal framework regulating relations in the field of gambling business in Russia contains legal acts adopted at the federal level and regional legal acts operating in the territory of gambling zones. Federal regulations include:
The regional regulations regulate the areas permitted by the gaming organizer and also address some infrastructural issues such as land leasing for game organizers, regional oversight, and so on.
By law, the minimum payout limit on all slot machines must be 90%. Big payouts are paid only after the player has been verified with the help of a document.
Online games are generally banned in the Russian Federation. At the same time, the law allows, as an exception, to place interactive bets in the form of the player's personal funds. These bets will be delivered to the Gambling Organizer via an electronic payment method specially designed by the bookmakers or the Interactive Bet Transfer Registration Center.
The legal regulation of the gambling industry is conditionally divided into two groups of norms, which relate to:
Gaming industry regulators in Russia
General gambling in Russia is regulated by the state. The Ministry of Finance is the designated government body to develop gambling policies and regulations. The Federal Tax Service is responsible for overseeing and issuing lottery licenses.
State supervision in the field of gambling entertainment is carried out by an authorized federal executive body (Federal State Supervision) and the executive bodies of the constituent units of the Russian Federation.
Permits for organizing and conducting all kinds of gambling organizations in the gaming zone are issued by the governing body of this zone, namely:
The lottery permit is issued by the Government of the Russian Federation and the organizers are:
The controlling body in the lottery is the Federal Tax Service. This service has the authority to initiate administrative proceedings against inappropriate games and lottery organizers. Also, cases of administrative violations can be initiated by the prosecutor's office or the police. In cases where organizing gambling or lottery is a criminal offense, the Russian Investigative Committee launches an investigation.
Illegal presentation of gambling and lottery on the Internet is blocked by the Russian Federal Service for Information Technology and Mass Communications Supervision (Roskomnadzor). This is done in accordance with the order of the competent supervisory body or by order of the court.
Gaming industry regulators in Russia
General gambling in Russia is regulated by the state. The Ministry of Finance is the designated government body to develop gambling policies and regulations. The Federal Tax Service is responsible for overseeing and issuing lottery licenses.
State supervision in the field of gambling entertainment is carried out by an authorized federal executive body (Federal State Supervision) and the executive bodies of the constituent units of the Russian Federation.
Permits for organizing and conducting all kinds of gambling organizations in the gaming zone are issued by the governing body of this zone, namely:
The lottery permit is issued by the Government of the Russian Federation and the organizers are:
The controlling body in the lottery is the Federal Tax Service. This service has the authority to initiate administrative proceedings against inappropriate games and lottery organizers. Also, cases of administrative violations can be initiated by the prosecutor's office or the police. In cases where organizing gambling or lottery is a criminal offense, the Russian Investigative Committee launches an investigation.
Illegal presentation of gambling and lottery on the Internet is blocked by the Russian Federal Service for Information Technology and Mass Communications Supervision (Roskomnadzor). This is done in accordance with the order of the competent supervisory body or by order of the court.
Obtaining a license
There are the following types of licenses in Russia:
The organizer of the lottery has the following requirements:
To get a license to book outside the gambling area or to gamble, you must submit an application to the Federal Tax Service and many documents:
The issue of issuing a license is decided by the authorities within 45 working days after the submission of the application and all the necessary documents. The license is valid for an unlimited period. State duty is 30 rubles.
Gambling operators (casinos and gambling halls) who carry out their behavior in gambling zones generally have the same requirements as in the case of lotteries and bookmakers. However, the law also provides for some characteristics. For example, the net value of the asset in this case must be at least 600 million rubles.
Permission to provide entertainment in play areas
Permission to carry out activities related to the organization and conduct of gambling in the gambling zone shall be issued by the governing body of this zone through an auction or competition. Such a permit is usually issued for an unlimited period, ie until the moment of liquidation of the relevant play area. However, the decision may be revoked by the governing body in the following cases:
If the activity of organizing and conducting gambling has not been carried out within 3 years from the day of obtaining the permit.
Gaming licensed species
Each gaming zone of the Russian Federation contains several casinos and a hall with slot machines. Each of them offers players a huge range of gaming fun.
Almost all types of gambling are allowed in Russian casinos, including:
Slot machines are the most popular among Russians. There are at least 100 slot machines in any Russian casino, and more than 750 in some establishments (for example, Shambhala Casino in the city of Azov).
Tax
The gambling business tax is one of the regional taxes. The revenue received from it is an important source of budget revenue for the relevant founding unit of the Russian Federation. The main provisions on taxation of the gambling industry are given in the Tax Code of the Russian Federation.
The tax rate is determined by the laws of the constituent parts of the Russian Federation, within the limits established by the Tax Code:
Bookmaker 1 bet on the office - 5-7 thousand rubles.
The gambling business tax, or rather the amount of taxes to be paid to the budget of the Russian Federation, is determined directly by the taxpayer according to the size of the bet. The total number of registered objects is taken into account. The taxpayer must submit to the tax authority a determination of the exact amount of the deduction no later than the 20th day of each month.
To make sure that the gaming industry does not receive as much revenue as planned, the government decided to slightly change the tactics of regulating the gaming industry. Already in January 2017, the Ministry of Finance presented a draft amendment to the Tax Code and proposed to double the tax rates in this area of business.
Online gambling in Russia
Online gambling is banned in Russia. In addition, its forms are allowed, which include the implementation of interactive bets (for example, slot machines, casinos and card game simulators, as well as online lotteries and bookmakers).
The ban on online versions of classic slot machines does not prevent Russian citizens from playing in various online casinos, poker rooms, etc. Of course, Roskomnadzor regularly blocks banned sites, but new ones appear in their place immediately. There are currently 259 Russian sites with Russian and English interfaces. Bets here are offered in Russian rubles, euros or US dollars.
Popular slot machines in Russia
As in many other European countries, Greentube, Igrosoft, NetEnt and other products are popular in Russia. The following slot machines have the highest rankings in the ranking of many online casinos visited by Russians:
Russian game developers
There are several game developers in Russia who are known in many countries. Between them:
Despite many bans and restrictions, gambling is actively developing in the Russian Federation. It is planned to open new gambling zones and new casinos in the existing zones. Russian programmers are also actively developing.
However, according to the latest gambling news, there are no plans to legalize casinos and gambling halls outside the gambling zones. There are currently several legislative initiatives to regulate the conduct of lotteries, but they have not received much support from experts and entrepreneurs.