Finance Minister Proposes Legalization of Online Casinos to Generate Revenue Amid Economic Pressures

Finance Minister Anton Siluanov has put forth a proposal to legalize online casinos in a bid to enhance state revenue, according to a report from the business newspaper Kommersant on Tuesday, which cited sources familiar with the minister’s correspondence to President Vladimir Putin.

Siluanov recommended that the current prohibition on online casinos, in place since 2009, be lifted as the government seeks new revenue streams to cover the escalating costs associated with the ongoing conflict in Ukraine.

Despite the existing ban, the online gambling sector has seen significant growth in recent years. The Finance Ministry estimates that the total turnover of Russia’s legal betting market—comprising licensed bookmakers and totalizators operating online—reached 1.7 trillion rubles (approximately $22.2 billion) in 2024.

In contrast, the illegal online gambling market is believed to be around 3 trillion rubles (roughly $39.1 billion), with around 100 unauthorized platforms currently in operation.

Kommersant further reported that Siluanov’s proposal aims to establish a unified system for monitoring bets, akin to the framework utilized for licensed bookmakers, placing the industry under the supervision of a single regulatory body tasked with preventing gambling addiction.

Other government entities would be responsible for enhancing efforts to eradicate illegal operators, the report noted.

In his correspondence to Putin, Siluanov projected that legalizing online casinos and imposing a monthly tax of at least 30% on gross revenues could yield approximately 100 billion rubles ($1.3 billion) annually for the federal budget.

However, the report from Kommersant did not indicate whether Putin has reacted to the proposal or expressed support for the legalization of online casinos.

The global online gambling industry has witnessed remarkable growth in recent years, and some researchers have raised concerns about a concurrent increase in gambling addiction, which they consider a significant public health challenge.