Russian finance ministry chiefs say the illegal online casinos sector is growing fast, with regulators seemingly powerless to stem its growth.
Recent crackdown efforts have yielded a lack of palpable results, Deputy Finance Minister Ivan Chebeskov told the Russian Federation Council Committee, the Russian state-owned news agency TASS reported.
“Illegal online casinos are actively developing and draining funds from our citizens,” said Chebeskov. “According to our estimates, the amount of money our citizens spend on illegal online casinos may be greater than the funds that pass through regulated bookmakers.”
Several major sports betting firms have received operating permits in Russia. The nation is also home to four designated gambling zones. Online casinos are illegal in Russia, although the same ministry has recently proposed lifting this ban.
The ministry says legalizing and regulating online casinos would help raise billions of dollars per year for the Treasury. Officials have asked the Kremlin to approve the plan and impose tax levies of 30% on operators.
Russian Finance Ministry: Invest in Finance, Not Casinos
Chebeskov said that the Ministry of Finance, together with the Central Bank and the media and web censor Roskomnadzor, is trying to “combat illegal platforms.”
But he said that their crackdowns have failed “due to the constant emergence of new online gambling schemes and websites.”
Chebeskov said regulators should create new “mechanisms” that educate citizens about the risks of gambling.
He also suggested public campaigns that focus on the advantages of making traditional financial investments.
The official said education would help members of the public understand the benefits of “redirecting funds from bets” to investment vehicles.
Russians: $26B Annual Betting Spend
Chebeskov said the ministry believes Russians spend 2 trillion rubles ($26.1 billion) per year on bets made via domestic bookmakers’ platforms.
He lamented the fact that citizens were wasting an “enormous amount” of money on gambling.
The reaction to the ministry’s online casino legalization plan has been mixed.
While some officials say they are undecided on the proposal, some State Duma lawmakers have opposed legalization efforts.
They claim online casinos cause harm to society and drive up the risk of gambling addiction. Other critics have been more vociferous in their attacks. These include leaders of the Russian Orthodox Church.
Gambling-related crime is also on the rise in Russia.
In Sochi, home to one of the four gambling zones, police have accused a man of stealing 200,000 rubles, worth over $2,600, from his girlfriend.
Detectives say the man stole the cash, his lover’s life savings, to place bets on an online casino platform.
Police later arrested the man in a Sochi hotel.
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Russian finance ministry chiefs say the illegal online casinos sector is growing fast, with regulators seemingly powerless to stem its growth. Recent crackdown efforts have yielded a lack of palpable results, Deputy Finance Minister Ivan Chebeskov told the Russian Federation Council Committee, the Russian state-owned news agency TASS reported. “Illegal online casinos are actively developing
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