Russian land-based and online gambling operators are reeling after the government confirmed plans to gradually raise gaming taxes by a factor of 10.
On Friday, Russia’s Ministry of Finance published a notice on its website indicating draft guidelines for its budget, tax and customs tariff policy for 2018 through 2020. The notice includes plans to double gaming taxes starting January 1, 2018, with further increases to follow gradually until 2020, by which time the gambling tax rates will have increased “by 10 times.”
The Ministry notes that gambling taxes haven’t increased since January 1, 2004, and that the hikes are required “in order to increase the revenues of the budgets of the constituent entities of the Russian Federation.” The taxes are to be applied on a regional basis and paid where gambling companies’ operations are situated.
Russia has been looking for ways to boost its gambling tax take from casinos, bookmakers, lotteries and sweepstakes, which is why Friday’s notice calls for “the introduction of new objects of taxation of the tax on gambling; the processing center for interactive betting shop bets, the processing center of interactive betting rates.”