Two fold increase in gambling tax is just the start of planned tax increases
The Russian government’s strategy to significantly ramp up taxes on gambling in the future (see previous InfoPowa reports) has started, with President Vladimir Putin signing two tax bills into law this week which will impact operators and payment hubs (TSUPIS).
The increases are nationwide and range from RUB 50,000 (US$860) to 250,000 ($4,300) for a gaming table or a processing centre run by a tote or a bookmaker; and from RUB 3,000 ($51) to 15,000 ($258) for a slot machine.
The TSUPIS legislation restricts money transfers to illegal bookmakers, and introduces a RUB 2.5 to 3 million tax on an online bet processing centres (TSUPIS). This law obliges bookmakers and totes to deduct taxes from wins exceeding RUB 15,000, removing this responsibility from the punters.
Currently, there are two TSUPIS operating in Russia, run by competing self-regulatory bookmaker trade associations.
InfoPowa readers will recall that the Russian Finance Ministry has been clear on its ultimate intentions to raise gambling taxes ten-fold over the next few years.
The laws come into effect early in 2018.