Russian bookmakers protest gov’t plan to tax bettors’ winnings

Russia‘s bookmakers are protesting their government’s proposal to tax sports bettors’ winnings.

Russia is in the process of regulating its online sports betting market and its most recent draft decree was published in May. The Ministry of Finance’s latest proposal calls for bettors to be exempt from a 13% betting tax provided their winnings total less than RUB 4k (US $74).

But Russian bookmakers point out that the tax would apply if a player’s winnings top RUB 4k at any point during an as yet undetermined period of time – believed to be a calendar year – regardless of whether a player’s overall betting activity results in a net loss during this period.

Oleg Zhuravsky, president of the First Self-Regulatory Organization of Russian Bookmakers, told Bookmakersrating.ru that both bookies and bettors were opposed to the tax plan. Zhuravsky called the proposal “a complete misunderstanding” of the betting process that would only encourage bettors to seek out internationally licensed betting sites.