State Duma Committee on Physical Training and Sport endorse a bill on new tax for bookmakers

Members of the State Duma Committee on Physical Training and Sport have endorsed by a solid vote the initiative of the government. It is supposed that bookmakers will pay a tax in favor of sports organizations.

In accordance to the draft law No. 1113576-6 “On the amendments to separate legislative acts of the Russian Federation (regarding the formation of revenue increasing mechanisms of sports subjects)”, gaming organizers will have to make targeted contributions once per quarter in amount of 5% of their revenue, but not less than 3 million rubles, with the total amount of contribution shall be at least 15 million.

There are currently 31 betting companies operating in Russia. If each of them accepts bets for an event, its organizer will get 93 million rubles, the authors of the draft law said.

To increase the bookmakers’ income, it is proposed to allow betting to be advertised during broadcasts of matches, but it should not take more than 20% of airtime.