From uncontrolled and ubiquitous Future of Legal Casinos to bans Legal Casinos, taxes and gambling zones, the gambling industry in Russia has undergone many changes over the years, and despite strong demand, the country remains a challenging and turbulent market.
What the Russian gambling law allows and prohibits. Which companies can obtain a betting license. What the law on a unified gambling regulator will result in in a new material from Slotegrator.
In post-Soviet times, the gambling industry in Russia was not banned and existed without regulation. Casinos, gambling halls and free-standing slot machines in crowded places. Shops, gas stations, hotels. Since that time, probably. The stigma has gone, associating gambling with something corrupting and even criminal. The largest cities in which gambling activity developed. Were Moscow and St. Petersburg. They accounted for more than half of all casinos and gambling clubs.
By 2005, the industry reached the $6 billion mark. But clear regulation and licensing was never implemented.
In October 2006, Russian President Vladimir Putin proposed to severely restrict the gambling industry. And already in December this initiative turned into a law.
By 2009, slot machines and casinos were banned throughout the country. Except for special gambling zones – one each in the Krasnodar Territory, Altai, the Kaliningrad Region and the Far East.
The idea of gambling zones was clearly inspired by the example of the United States. Where casinos were allowed in certain parts of the country: in Las Vegas. In Atlantic City and in some indigenous reservations. These islands of legal gambling were intended to be used as a way to stimulate outlying regions. But in the end, due to the huge distance from existing tourist destinations. They did not show the desired results. The presence of legal casinos in the Baltic States and Belarus also played a role. Which were simply closer for players from Moscow and St. Petersburg.
Idea of Gambling Zones
The Altai and Kaliningrad zones showed average results. And the Krasnodar Azov-City zone was liquidated. Which deprived investors of hope for a return of more than 3 billion rubles spent on its development.
The Russian Federation. Be a member of a self-regulatory organization. Have an official website in the RU domain.
In order to play with a legal provider. A player previously had to register not only on the sportsbook website. But on the TsUPIS website. And go through the verification procedure. But since 2019, betting companies have been able to transfer the procedure completely to TsUPIS.
You can’t officially play on foreign resources in Russia. And banks can reject payments, acting within the framework of the law “On countering the legalization of proceeds from crime and the financing of terrorism”. Therefore, even after gaining access to a blocked resource using a VPN. There are no guarantees that the winnings will actually ever fall into the player’s pocket.
Obtaining a betting license in the Russian Federation
To become the owner of a betting license in Russia. An authorized capital of at least 100 million rubles paid from its own funds. In addition to the authorized capital. The legal entity must have at least 1 billion net assets and a bank guarantee for 500 million rubles.
Having received a license from the Federal Tax Service Mbitcasino. There are two of them in Russia: “The First Self-Regulatory Organization of Bookmakers” and “Association of Bookmakers”.
Work with interactive betting systems – TsUPIS. Each self-regulatory organization has its own system: “First TsUPIS” works with the First SRO, “TsUPIS Qiwi” serves companies that are members of the Association of bookmakers.
Among the largest licensed brands are companies such as BingoBoom, Fonbet and Betcity.
Neighbor Example Future of Legal Casinos
After the collapse of the USSR, in many countries of the former Soviet Union. The gambling business developed according to a similar Legal Casinos scenario. After complete bans, the industry experienced explosive growth. But was unregulated and non-transparent.
However, the directions of different countries in regulating the gambling industry are very different.
For example, Kazakhstan follows the Russian example and restricts casinos and gambling. Halls to special zones in the Almaty and Shchuchin regions. Moreover, from January 4, 2021, a similar restriction applies to bookmakers. Armenia has a legal market, but with heavy restrictions on advertising. (But this did not happen due to the dissatisfaction of the bookmakers and the nuances of the political agenda). Future of Legal Casinos growing and prospering. Although also heavily focused on ground establishments.
For a Russian player, casinos and gambling halls in the Republic of Belarus. Were an early alternative to domestic establishments that closed after the ban. But in general, the market in the country has been in decline for a long time due to ever-increasing taxes and tightening restrictions.
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