In some cases, a 100 percent jump
Starting in January 2017, betting shops and totalizers in Russia will have to fork over more in taxes, according to Russian business daily RBK, which viewed a draft of amendments to the Russian Tax Code.
The betting outlets “will be obliged to pay 2.5 (to) 3 million rubles (US$36,600 to $43,900) per month for the opportunity to take bets online, according to the draft amendments to the Tax Code,” said the publication, as reported by the Asia Gaming Brief. “This is 100 times more than the current lower tax limit, which regions are allowed to levy upon betting shops and totes.”
The tax rate was developed by the Ministry of Finance last month and approved by the government commission on legislative activities. The fee for each processing center accepting online bets will be decided by authorities in the individual regions, with a default sum of 2.5 million rubles, AGB reported.
The new tax will take effect on January 1, 2017, with proceeds to go to regional budgets.
“The state will receive good taxes and create an environment which will not throw obstacles in bookmakers’ path and hinder players from receiving their winnings,” said Oleg Zhuravsky, head of the First Self-Regulating Organization of Russian Bookmakers. “Bookmakers won’t refuse to work online because of the new tax. Compared with the assets that betting companies have to collect to get a license, a monthly tax of 2.5-3 million rubles looks ridiculous.”
Zhuravsky said there are now 31 licensed betting firms in Russia, with an annual turnover estimated at $1.5 billion dollars and returns of approximately 10 percent.
In addition, local media reported that Russian bookmakers will be obliged to contribute 5 percent of their income to benefit physical culture and sports in the Russian Federation. The contributions are expected to start at a minimum of 15 million rubles per quarter for each company.
