Russia’s licensed sports betting operators are breathing a little easier after the government proposed further reductions to their mandatory contributions to the nation’s sports bodies.
In March, Russia announced that licensed bookmakers would be required to kick back 5% of their sports betting revenue to national sports federations, with a minimum quarterly payment of RUB 15m (US $232k). Last month, the Ministry of Finance announced that this requirement would be dialed back to 3%.
This week, the Ministry of Finance further reduced this mandatory contribution to 1% of online and land-based betting revenue. The reduction reportedly came following widespread appeals from betting operators, who are already struggling to absorb a host of new taxes and heightened regulatory fees.
Russian bookies celebrated the news in typically muted terms. Bingo Boom CEO Konstantin Makarov said the 1% sports tax was still a significant sum but believes the industry can absorb it.