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Russian betting Sites to face rise in tax rates
RUSSIAN ONLINE BETTING TRANSACTION HUBS INCLUDED IN NEW TAX DEMANDS
Russia's two compulsory online bet processing centres (TSUPIS) face rise in tax rates.
The Russian Finance Ministry's latest tax advisory has confirmed a two-fold increase in online gambling taxes as a result of the latest amendments to its May 2016 draft legislation, and among the taxes are hefty increases for the country's currently two online bet processing centres (TSUPIS) owned and operated by competing self-regulatory bookmaker associations.
The TSUPIS tax hikes include an increase from RUB 50,000 to 250,000 per processing centre run by a tote or a bookmaker; in addition, Russian online gambling operators will be required to pay a minimum monthly fee per jurisdiction up from RUB 2.5 million (US$36,600) to RUB 3 million (US$43,900).
Online bookies also pay a 1 percent commission on each transaction through the TSUPIS, and face levies at 5 percent of GGR to assist Russian sports federations.
The high cost of operations does not seem to have discouraged operators, with Pari Match and BetCity about to join four other online sports betting enterprises operating in the Russian market.
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