Russia is preparing to end its long-standing ban on online casinos and betting, with the Finance Ministry pushing a plan that could bring the federal budget at least ₽100 billion ($1.05 billion) a year through a single state-controlled operator.
The proposal, first reported by Kommersant on January 29, has already reached President Vladimir Putin’s desk. Finance Minister Anton Siluanov wants to create one authorized online gambling platform that would send at least 30% of its gross revenue after payouts directly to the state treasury every month.
This marks the most serious attempt in over 15 years to bring Russia’s huge underground online gambling market into the legal, taxed system.
Why Now? Budget Pressures Force Policy Shift
Russia’s federal budget faces massive strain from military spending and Western sanctions. The Finance Ministry openly admits new revenue sources are urgently needed.
Online gambling has remained one of the few large untapped tax opportunities. Industry experts estimate Russians currently wager between ₽1 trillion and ₽1.5 trillion annually on illegal offshore sites, none of which pays a single ruble to the Russian state.
A regulated market with a single operator could capture a significant share of that money while cutting off revenue streams to foreign platforms that ignore Russian law.
Single Operator Model: Control Over Competition
Unlike most countries that issue multiple licenses, Russia plans to follow the “unified regulator” approach already used for sports betting and lotteries.
One company would receive exclusive rights to offer online slots, table games, and other casino products to Russian citizens. The operator would be chosen through a tender process and operate under strict government oversight.
The chosen company would keep up to 70% of revenue after winnings, while sending the remaining minimum 30% straight to federal coffers each month. Officials believe this structure guarantees stable, predictable budget income.
Fifteen Years of Strict Prohibition
Russia banned almost all gambling in 2009 under then-Prime Minister Vladimir Putin. Casinos were forced to close or move to four remote designated zones: Kaliningrad, Primorsky Krai, Altai, and Krasnodar.
Online gambling was completely outlawed. Roskomnadzor has since blocked more than 1.5 million gambling websites, yet Russian players continue to access offshore platforms through VPNs and mirror sites.
Despite the crackdown, the illegal market has grown steadily. Many international operators openly accept Russian players and even advertise in Russian language.
How Much Money Is Really at Stake?
Independent analysts give varying estimates, but most agree the legal market could generate substantial tax revenue.
Key figures circulating in Moscow:
- Current illegal market size: ₽1–1.5 trillion per year
- Potential legal market in first years: ₽300–500 billion annually
- Minimum guaranteed budget revenue under single-operator model: ₽100 billion per year
- Possible upper-end budget revenue: ₽150–200 billion with aggressive marketing
Even the conservative ₽100 billion figure would make online gambling one of Russia’s top ten non-oil-and-gas tax sources.
Industry Reaction: Cautious Optimism Mixed with Questions
Russian betting companies that already hold legal licenses for sports betting welcome the news but want clarity on whether they can participate in the tender.
International operators will almost certainly be excluded for national security reasons, meaning the winner is likely to be a domestic company or a new state-backed entity.
Some lawmakers worry the move sends the wrong social message during wartime, while others argue the state should collect taxes rather than let criminal groups and foreign sites profit.
The Kremlin has not yet commented publicly, but the fact that Siluanov’s letter reached Putin personally suggests the proposal carries serious political weight.
Russia appears ready to join the growing list of countries that have decided regulating online gambling brings more benefits than prohibition. If President Putin gives the green light, the country could launch its first legal online casino platform as early as 2025.
The move would end one of the world’s longest and strictest online gambling bans and open a lucrative new chapter for both the state budget and Russian players who have wagered in the shadows for over a decade.
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