New Russian statistics show that illegal online casinos and sportsbooks are losing market share to license-holding bookmakers.
As the Kremlin continues to mull a plan to legalize web-based casinos, data from the analytics platform Blask shows illegal portals’ visitor numbers have now fallen to their lowest levels since 2018.
Permit-holding bookmakers captured 60% of the market share in June, with illegal sites accounting for the remaining 40%.
“Admittedly, 40% is still a huge gray area,” a Blask official said, per the Russian newspaper Kommersant. “However, the trend for the first half of the year is clear. Demand is shifting from dubious online casinos to license-holding operators. And it is doing so at a rapid pace.”
The development comes just days after Russian President Vladimir Putin signed a law that will force gambling firms to block citizens who add their names to a central self-exclusion registry.
As of September 1, courts will have the authority to fine non-compliant firms up to $6,400 per violation.
Russian Illegal Online Casinos’ Market Share Shrinking
According to the Blask data, illegal online betting receipts have now fallen to their lowest levels since 2018.
The drop is as notable as it is fast. As recently as January, illegal operators accounted for almost half of the market.
But recent crackdowns have squeezed these platforms. The data shows illegal operators’ market volume peaked at $839 million in January 2024. Since then, however, Blask says volumes have shrunk by 69%.
Analysts at the data provider claimed that the Russian Central Bank’s decision to revoke the operating license of the e-pay firm Qiwi Bank on February 21, 2024, marked a watershed moment for illegal casino operators.
“[The move] deprived the illegal segment of a key payment channel,” Blask said.
Just five months later, the legal sector’s revenue figures surpassed that of illegal operators for the first time.
The illegal sector received another body blow in February this year when the Russian e-payment gateway FreeKassa shut down.
The operator reportedly shuttered days after a major media exposé linked it to several illegal online casino sites.
The data shows illegal market operators enjoyed a brief renaissance in August last year, when they raked in around $442 million.
However, the figures show this revival was short-lived. After the Central Bank launched a national database of known credit card mules (known as “droppers” in Russia), gains for illegal operators began to fizzle out.
Russia’s World Cup Winner: Legal Betting Firms
Official government figures appear to line up with the Blask statistics.
According to May data from the Unified Regulator of Gambling, the volume of above-board sports bets placed on legal bookmaking platforms rose by over 8% last year, reaching the 1.9 trillion ruble ($24 billion) mark.
Experts said government efforts to clear the internet of illegal Russian-language casino sites are paying off.
Censors have been given new powers to systematically block platforms and mirror sites.
The Russian betting industry expert Alexey Botika said legal operators were the biggest winners during the recent soccer World Cup.
Botika said many major firms used the event to “retain existing users and attract new customers.”
Legal sportsbooks saw both average bet frequency and average bet size grow during the tournament, he said.
However, while the illegal sector is down, it is far from out in Russia.
Illegal Operators Rely on VPN Solutions
Boris Gubkin, the editor-in-chief of the Russian betting industry-focused media outlet RB Business, said that “banned” social media and other platforms remain “filled with advertising for illegal brands.”
CasinoBeats has seen evidence that scores of Russian-language betting sites continue to advertise their services on X and YouTube.
The government has banned both X and YouTube. But CasinoBeats has also seen evidence that thousands of Russians continue to use the platforms, navigating geoblocks with Virtual Private Network software.
Kommersant quoted an anonymous source at a major Russian bookmaker as stating that the Ministry of Finance’s plan to legalize online casinos “could provide another serious rebuff” to illegal operators.
The post Illegal Online Casinos Losing Out to Permit-Holding Russian Operators, Data Shows appeared first on CasinoBeats.
New Russian statistics show that illegal online casinos and sportsbooks are losing market share to license-holding bookmakers. As the Kremlin continues to mull a plan to legalize web-based casinos, data from the analytics platform Blask shows illegal portals’ visitor numbers have now fallen to their lowest levels since 2018. Permit-holding bookmakers captured 60% of the
The post Illegal Online Casinos Losing Out to Permit-Holding Russian Operators, Data Shows appeared first on CasinoBeats.