Russia Eyes Online Casinos as Revenue Booster: Taxation and Economic Strategies

Russia considers lifting its ban on online casinos with a 30% tax to potentially generate up to 100 billion roubles for the state budget amid ongoing economic challenges. Increased taxes, targeting imports and the betting industry, aim to offset deficits inflated by military spending in Ukraine.

In an effort to bolster its state budget, Russia is contemplating lifting its ban on online casinos, alongside imposing a 30% tax on their revenues, as reported by Kommersant. This move is projected to add up to 100 billion roubles, approximately $1.3 billion, to the national coffers.

Facing a budget deficit exacerbated by military expenditures in Ukraine, with last year's targets raised twice to 2.6% of GDP, the Russian government has focused on tax increases to stabilize finances. Since 2022, tax policies have aimed to generate at least 27.6 trillion roubles, including VAT hikes affecting consumer goods from China through the Eurasian Economic Union.

Deputy Industry Minister Roman Chekushov highlighted a focus on regulating large consumer goods shipments via electronic trade platforms, while recent VAT adjustments and new betting industry taxes further illustrate the government's revenue-raising strategies. Economists caution, however, that these measures could suppress business activity, leading to future tax challenges.

(With inputs from agencies.)