Licensed Online Sports Betting Growing In Russia

Published Tuesday, July 25, 2017 - Online-Casinos.com
Licensed Online Sports Betting Growing In Russia

Late last year the Russian government’s Ministry of Finance overhauled its taxation regime for licensed sports betting operators in the country cutting the rate from 5% to 3% to finally 1%. The lowering of the taxes for licensed online betting operators was a response to a number of appeals from firms in Russia which already contend with a variety of other taxes and regulatory costs.

In February of 2017 Russia’s Ministry of Finance targeted online gambling payment processing with new legislation designed to block payment transactions with unlicensed international online gambling firms.

Russian authorities estimate that $3 billion (€2.8 billion) is spent each year on illegal online gambling that involves international gambling operators. Back in June of this year Russian billionaire Alexander Mamut planned to join with GVC Holdings, the parent company of Bwin, to launch an online sports betting platform in the jurisdiction.

Kommersant, the Russian media outlet reported that Bwin.ru will partner with licensed Digital Betting LLC., and online technology company Rambler & Co to launch the offering.  Both enterprises are owned by Mr. Mamut. Mamut has said he will spend up to €10m ($11.2m/£8.6m) per year over the next three years to develop the new sports betting Bwin.ru brand. As of June 2017 there are about 10 bookmakers approved to offer online wagers to Russian punters. It has been suggested that Bwin's entry into the market may serve as a model for other firms considering entry into Russia’s gambling arena.

Since the entry of Bwin.ru there is another company willing to offer sports betting services in the area with Marathon launching its platform in Russia. A licensed operator, the new Marathonbet.ru platform will advance its presence in Russia. Consumers of the new products offered are required to resister at one of Marathon’s retail outlets although only the firm currently only has sites in Moscow and St. Petersburg. Kommersant media says that the regulated online gambling market is currently worth only €15.7m in total annual revenue.

 

 

 

Related news

Return to Latest News