Tenfold increase in taxes on gambling

Tenfold increase in taxes on gambling

The Ministry of Finance of the Russian Federation will increase the taxation of casinos and betting companies tenfold.  Bookmakers will also have to give away 10% from stakes made online.

Owners of gambling venues say that it will negatively influence their business.

The government discusses a legislative draft, according to which taxes will be increased by the end of the year.  

Today casino games can be played in    Krasnodar Krai, Altai and Primorye. And betting companies can operate everywhere. Regional taxation is common. Monthly RUB 7500 is paid for each slot machine and RUB 125 000– for a gambling table. Betting companies pay RUB 7000 every month.

It makes no economic sense for businesses to continue their activities after the tax increase. Players don’t spend much during the economic decline.

And incomes of betting houses have decreased by 30%. Nearly 40% of companies will be closed down after the tax increase. It would be more reasonable to increase taxes twofold.

Following the instructions of Vladimir Putin, bookmakers have to allocate a share of their incomes to support sport. In summer betting houses got RUB 2.5 billion of net profit.

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