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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 :

GVC In Content Deal With Microgaming’s Quickfire - Microgaming-powered Prima Networks Limited will supply over 50 new titles to GVC’s recently acquired bwin Casino, PartyCasino and Party Poker gaming sites within the coming weeks.

Opap in memorandum of understanding With Inspired - Virtual sports provider Inspired has entered into a memorandum of understanding (MOU) with Greek betting and lottery operator OPAP for the supply of its full suite of virtual sports, for integration online and across OPAP's retail network.

DeltaCorp To Acquire ace2three - Our readers will recall Delta Corp. acquired a 26 percent stake in Gaussian Networks, parent company of India’s largest online poker operator Adda52 earlier this month

More Australian POC Taxes - In an interview with The Australian, Tabcorp chief executive offer David Attenborough warned “global rivals” of his belief that other Australian states are moving fast to follow South Australia’s lead in implementing a point of consumption tax.

William Hill Exits Russia - "Starting from September 23 William Hill Casino Club will terminate its activities in the Russian territory for legislatory reasons. All active customer accounts will be suspended," the advisory reportedly detailed.

Pennsylvania Online Gambling Hearing Postponed till October - HR 2150, which includes DFS and e-gaming elements, was passed as part of the critical state budget bill by the House in June this year, with lawmakers expecting the bill to contribute $100 million annually in licensing and fees to help balance the state budget.

Two Mega Fortune Dreams Jackpots Hit - Both Swedish players, the first lucky punter hit a GBP 100,000 jackpot playing on his mobile phone, while the second, identified as Martin, staked just 18p before netting a GBP 60,000 jackpot on the popular series thinking he was playing in demo-mode.

ASA Looking at Ladbrokes and Netbet ads - A TV ad for Cosmo Gaming’s NetBet online casino was determined by the UK Advertising Standards Authority (ASA) as glamorising online gambling following a single complaint.

Betconstruct In Deal With Realistic Games - BetConstruct has agreed a deal in which it will integrate a range of Realistic Games online table and slot content including blackjack, roulette and slot titles Super Graphics Upside Down, The Fruit Factory and Fireworks.

XLMedia Half 1 2016 Earnings Report - Online gambling marketing company XLMedia, which operates websites driving players to online casino operators, delivered robust interim results for the first half of 2016, attributing its success to investment in technology.

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