Bookies must still levy taxes
At the close of 2017, Russian President Vladimir Putin signed off on legislation that will keep the country’s casino operators from serving as tax collectors.
Per the new law, casinos are not obligated to levy taxes from wins over RUB 15,000 (US$263.50), and may leave the winners themselves to pay the taxes on their own. Bookmakers and totes must continue to deduct taxes from their winning clients.
Lawmakers were under pressure from casino operators like Summit Ascent Holdings, which had warned it would put a halt to expansion plans at its Tigre de Cristal in the Primorye special economic zone if it were forced to collect taxes on wins, according to CDC Gaming Reports.
The proposed tax collection requirement and the threat of a gaming tax hike may have played a part in Lawrence Ho’s decision to divest of his assets in the Primorye. The billionaire head of Melco Resorts & Entertainment sold off his stake in Hong Kong-listed Summit Ascent last year, and then stepped down from his role as chairman of the company. He was recently replaced by Kuo Jen Hao. Kuo is also chairman of Taiwan-listed shipping operator First Steamship Co. Ltd., which plans to acquire a 12.67 percent stake in Summit Ascent.
