Russian authorities are going to increase the tax on online betting business 100 times

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The Russian government plans to increase taxes for online betting business to supplement the regional budgets deficit. It is expected that the tax levy will increase 100 times.

Новости букмекеров России: Власти РФ намерены повысить налог на букмекерский интернет-бизнес в 100 разDraft amendments to the Tax Code of the Russian Federation, prepared by the Ministry of Finance, implies a 100 times increase in the tax rate for the betting companies. According to the new draft law, bookmaker’s offices and betting houses will pay RUB 2.5 – 3 mln (USD 37 – 44 thousand) every month for the opportunity to take bets on the Internet. The Government Commission on legislative activities approved the draft law on March 21, 2016, the Ministry of Finance decline to comment on this issue.

For information, in January 2015 the government allowed bookmakers’ offices accept interactive bets online. According to the Ministry of Finance, in a given time period, the organizers managed to significantly increase their income, and the proposed tax can be imposed on January 01, 2017. In addition, the current tax rate will be valid for those bookmakers which do not accept online bets.

Experts argue that this tax will not take a toll on the betting business, since companies gain high incomes from the organization and provision of interactive bets.

As a reminder, the Ministry of Finance is preparing a Draft Law “On taxation of winnings” for the players. Players will still pay taxes on the winnings amounting to RUB 4 – 15 thousand independently. The tax on the lower winning will not be charged while the tax on the higher one will be paid by the betting providers.