Russia Battles Offshore Online Gambling Sites

Russia has passed amendments to its gambling laws to clamp down on illegal offshore online gambling sites reaching Russian bettors that want to participate in a new sports betting market to be introduced this year. The sites would have to locate servers in Russia.

Russia continues to get tough with offshore online gambling sites and has passed new rules requiring online gambling operators to not only be licensed in Russia, but to use only one domain name and locate their servers in the country.

Russia allows gambling in six designated zones, but online gambling is prohibited except where it has been sanctioned by the state, such as the Russian Lottery. However, the country is planning to introduce a regulated sports betting market later this year.

The amendments focus on that market. Companies that want to offer sports betting have to become part of a “Self-Regulatory Organization” and all online betting transactions will have to be processed through one “legal” payment processor.

The “Additional Requirements for the Organizers of Gambling” limit licensed operators to one online domain and requires that their servers be located within Russia and the display of the government´s seal of approval on their website.

Russia has announced plans to block illegally operating sites in the country, and the amendments are seen as a way to help identify legal operators.

Leaders of the two largest Russian betting organizations welcomed the amendments saying they clarify the government´s position on online gambling.