Russia eyes ₽100 billion revenue stream from online gambling legalisation

• Finance Minister Anton Siluanov asks President Putin to lift the online casino ban through a single-operator model.
• The proposal estimates ₽100 billion annual revenue from a minimum 30% tax on gross gambling income.
• The illegal online market is valued at ₽3 trillion annually, with approximately 100 unlicensed platforms operating.

Russia’s Finance Ministry has submitted a proposal to President Vladimir Putin that would end the country’s 17-year ban on online casinos through a strictly controlled state monopoly system.

Finance Minister Anton Siluanov outlined the framework in a letter to Putin, according to reports in Kommersant newspaper. The proposal centres on creating a single authorised operator rather than an open licensing regime.

This operator would remit at least 30% of revenue after winnings to the federal budget each month. The government estimates this could generate approximately ₽100 billion ($1.3 billion) annually.

Single-operator framework proposed

The Ministry of Finance proposes lifting the ban only under specific conditions. These include designation of an online casino operator by presidential decree and establishment of a centralised betting system through the Unified Betting Transfer Accounting Centre, mirroring the current framework used by licensed bookmakers.

Under the proposal, all users would need to be at least 21 years old, and all transactions would be processed through the unified accounting system. The framework would grant both the operator and the accounting centre powers to implement measures preventing gambling addiction.

The proposal arrives as Russia seeks additional revenue sources. The illegal online gambling market generates approximately ₽3 trillion ($39.5 billion) in annual turnover, according to The Moscow Times, with roughly 100 illicit platforms in operation.

By comparison, Russia’s legal gambling sector, restricted to land-based casinos in designated zones, generated ₽1.7 trillion ($22.4 billion) in 2024.

Online gambling has been prohibited in Russia since 2009 when President Putin extended anti-gambling legislation beyond the 2006 ban.

Land-based casino gambling remains legal only in four main designated zones: Krasnaya Polyana (Sochi), Yantarnaya (Kaliningrad), Primorye (near Vladivostok) and Sibirskaya Moneta (Altai), with Crimea’s zone under development.

Mixed political reaction

The proposal has drawn varied responses from lawmakers and industry representatives. Leonid Slutsky, head of the State Duma Committee on International Affairs and leader of the LDPR party, told media that lawmakers have not yet reviewed the details but urged caution.

“Perhaps Anton Germanovich (Siluanov) himself plays casino games,” Slutsky said, adding that gambling carries both benefits and risks.

He described Siluanov as the most professional finance minister in modern Russian history, emphasising that the proposal deserved serious consideration.

State Duma deputy Yevgeny Marchenko opposed the plan, warning that online casinos could expose children to gambling. He urged the government to seek safer revenue sources.

Vasily Rii, executive director of the Association for the Protection of the Rights of Gamblers and Lottery Participants, supported certain aspects but stressed the need for strict controls. He supported the minimum age of 21 but suggested introducing mandatory financial literacy assessments before allowing individuals to gamble online.

“It is critically important for the state to take full control of this activity. Otherwise, gambling could spread uncontrollably, creating serious social risks”.

Revenue context

The proposal emerges against the backdrop of rising public spending linked to the war in Ukraine.

Russia currently permits online sports betting through 15 licensed bookmakers who must operate through the Centres for Interactive Bets (CUPIS) system, introduced in 2014. These operators face substantial requirements including net asset value exceeding ₽1 billion, registered capital over ₽100 million, and bank guarantees of at least ₽500 million.

The Finance Ministry has not disclosed whether Putin has responded to the proposal. Implementation would require approval from the State Duma and Russia’s upper house of parliament before becoming law.

Authorities have previously attempted to suppress illegal gambling through website blocking. Roskomnadzor blocked over 130,000 gambling-related sites by 2018, with enforcement efforts showing limited success against the growing illegal market.