Deputy Finance Minister Ivan Chebeskov went on to say that the government crackdown on illegal online casinos in Russia is not giving the desired results and that they failing.
The ministry reminded that only legally licensed sports betting companies are allowed to operate, and there are four official gambling zones, but online gambling is still illegal. However, the online gambling market appears to be expanding, and the authorities are becoming less and less in control.
Speaking before the Federation Council Committee, he said,
Illegal online casinos are actively developing and draining funds from our citizens. According to our estimates, the amount of money our citizens spend on illegal online casinos may be greater than the funds that pass through regulated bookmakers.
Officials are at present discussing the possibility of removing the ban entirely after they argued that legalizing and regulating online casinos might bring in tax revenues of several billion a year. The Finance Ministry proposal is largely about tax, particularly stressing that online casinos would have to pay the state at least 30% of their revenue after winnings. The Single Gambling Regulator ERAI would be responsible for the supervision.
Chebeskov remarked that despite the combined efforts of the Finance Ministry, Central Bank, and Roskomnadzor, the government has not been able to close down illegal gambling websites.
He also said that no matter how hard the authorities try, it is a losing game as new sites and scams keep appearing.
In early 2023, the officials from Russia and Belarus discussed the matter. According to Chebeskov, regulators need to be given new tools if they are to be effective, for instance, they may include campaigns to the public which would be a warning about the risks of gambling.
He pointed out that the public should be primarily aimed at encouraging the advantages of the traditional financial investments, that is, if people are tempted away from gambling and their money put in investment instruments they could end up valuing the long-term.
During his address, Chebeskov revealed that Russians receive on average 2 trillion rubles or $26.1 billion from bets on domestic bookmakers annually. He called this an ‘enormous amount’ which is actually being lost to gambling.
The ministry’s plan to legalize online casinos has sparked a debate. Some officials are still considering the matter, whereas members of the State Duma have strongly opposed the plan, claiming that legalization might be harmful to the society and lead to a rise in the addiction.
Religious leaders, including members of the Russian Orthodox Church, have also spoken out against the plan:
It’s understandable that finance ministries are always looking for new revenue.
Vakhtang Kipshidze, deputy head of the Moscow Patriarchate’s Synodal Department for Relations with Society and the Media, said:
But in this case, the money would be taken from families who already have, or will develop, gambling addictions.
Opponents of the proposal worry about addiction but also point out that gambling-related crimes might increase. The police in Sochi, for instance, recently arrested a man accused of stealing 200,000 rubles, which were his girlfriend’s life savings, for gambling at an online casino.
