The government to replace the private lotteries with the state ones

Russian authorities are considering banningprivate lotteries in 2014. The issue was discussed at the meeting held at theoffice of the First Deputy Prime Minister Igor Shuvalov on 16 November, asreported by Vedomosti. The ban was initiated by the Ministry of EconomicDevelopment projecting that this decision would increase the annual budgetrevenue from lotteries from 1 billion to 10 billion rubles.

It is assumed that in a year all lotteries willcease to exist, except for the state ones and those promoting products andservices. Shuvalov ordered the Ministry of Finance and Economic Development to draftthe appropriate amendments to the law On lotteries by 10 December.

If the proposed amendments are adopted, thenation-wide lotteries will be held only if they are authorized by thegovernment, and the Ministry of Finance and the Ministry of Sports will beauthorized to organize them.

The decision was made to protectconsumers. The current practice of lotteries lacks transparency. We are essentiallytalking about a return to the Soviet model, but with an important difference:lotteries will be operated by the private companies approved by theorganizer, as stated by the spokesperson for Shuvalov’s Secretariat.

So far, the competent authorities have issued4,000 lottery licenses. In fact, there are currently only three nation-widelotteries: Sportloto organized by the Ministry of Finance,Gosloto by the Ministry of Sports and Pobeda initiatedby Spetsstroy.