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100 times increase in Russian Betting Tax

Wednesday, March 30, 2016 : MAJOR SHOCK FOR RUSSIAN ONLINE SPORTS BETTING OPERATORS
 
Reports that a massive increase in taxation is on the way.
 
Would be Russian online sports betting operators are reeling from the shock implications this week of an increase in taxation not ten times higher as previously reported, but up to 100 times greater.
 
Reporting on the increase, the Russian business daily RBK claimed that it has seen a draft of the new amendments to the Russian Tax Code, noting:
 
"Betting shops and totalizers will be obliged to pay 2.5 - 3 million rubles [US$36,600 - $43,900 dollars] per month for the opportunity to take bets online, according to the draft amendments to the Tax Code. This is 100 times more than the current lower tax limit, which [Russian] regions are allowed to levy upon betting shops and totes."
 
The fee for each processing centre accepting online bets will be decided by the authorities of the region concerned (there are 12 Russian regions), but if no decision is made the rate will be set automatically at 2.5 million rubles.
 
Government envisages the implementation of the new tax rates from January 1, 2017, with proceeds from the tax going to the coffers of the regional governments.
 
RBK says the draft was prepared by the Ministry of Finance on March 21 and approved by the government commission on legislative activities.
 
Trade bodies representing the bookmakers' interests appeared to have conflicting views, judging by Russian media reports - First Self-Regulating Organisation of Russian Bookmakers chief Oleg Zhuravsky told the RBK that the new tax should not hinder bookmakers from offering bets online.
 
"The state will receive good taxes and create an environment which will not throw obstacles in bookmakers' path and hinder players from receiving their winnings," he said.
 
"Bookmakers won't refuse to work online because of the new tax. Compared with the assets that betting companies have to collect to get a license, a monthly tax of 2.5-3 million rubles looks ridiculous."
 
Zhuravsky revealed that there are now 31 licensed betting companies in Russia, whose annual turnover is estimated at $1.5 billion dollars, with returns of around 10 percent.
 
However, the chairman of the rival Bookmakers Self-Regulatory Organization, Nikolai Oganezov, said rather colourfully that government seems determined to gut the online gambling goose in order to grab all the golden eggs in one swoop, and condemned both the lack of consultation with the industry and little transparency in the development of the tax hike.

Russian operators are already facing a previously decreed five percent levy on income to fund national sporting development.

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Gambling News :

NHL Odds: Canadiens Welcome Islanders Tonight - The Montreal Canadiens (32-20-8) welcome the New York Islanders (28-21-10) on Thursday (7:30 PM ET on SNE). After getting their first victory under new head coach Claude Julien, the Canadiens will look to build on that momentum against a red-hot Islanders team.

NHL Odds: Reeling Flyers Seek Relief in Pittsburgh - #nhl The Philadelphia Flyers have been a bit off since the holidays. They’ve won just eight games since the Christmas break, and now they’ve got a tough one coming up this Saturday night against the Pittsburgh Penguins.

Dollars to Donuts Slot Launch - Firstly, it's a classically styled, easy playing 3-reel with five pay lines featuring a traditional icon set of bars and sevens.

Secret Symbol Slot - RTG will soon release 'Secret Symbol', a 5 Reel Video Slot on 3/15/2017.

Microgaming is set to release three exciting new games in March - Pollen Party will literally have players buzzing with excitement as the ground-breaking, 720 way variable reel online slot is brought to life in a unique honeycomb reel layout.

NBA Odds: Resurgent Clippers Face Warriors in Oakland - After a much-needed lineup shuffle, the Los Angeles Clippers (29-27 SU, 35-21 ATS) carry a four-game SU and ATS winning streak into Thursday’s game against the best team in the NBA, the Golden State Warriors (47-9 SU, 27-27-2 ATS). Tip-off is at 10:30 PM ET on TNT.

NBA Odds: New-Look Pelicans Host Rockets on Thursday - The New Orleans Pelicans just hosted the All-Star Game and saw their very own Anthony Davis win the MVP. But the celebration was brief because the next day, the Pelicans made a huge trade,

PokerStars.CZ has launched in the Czech Republic - PokerStars.CZ has launched in the Czech Republic, becoming the first licensed online casino and poker operator under the Czech Republic’s new gaming regulation. This follows on from the approval by the Czech State Supervision of Gambling and Lotteries Department.

Luckia Games in Partnership with NYX Gaming Group - NYX will provide Luckia with its open gaming system, NYX OGS, and open platform system, NYX OPS, to support the growth of its established Spanish operation.

Sunbets to Sponsor Sutton United - Online betting operator Sun Bets has inked a one-off sponsorship deal with English association football club Sutton United for its upcoming televised clash against Arsenal FC in the FA Cup fifth round tie.

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