Tax changes rock Russia’s gambling sector

Russia has passed a bill that doubles tax rates for both land-based casinos and bookmakers, with even more hikes in the pipeline, raising concern the ever shifting sands of regulation are changing the outlook for the industry and threatening foreign investment. Steve Gallaway, managing partner at Global Market Advisors, says the “changes to the tax regime are devastating for the IEZ (Integrated Entertainment Zone) in Primorye,” referring to the most developed of Russia’s gaming zones. In late November, Russian President Vladimir Putin signed a bill into law that doubles the gambling tax rates local governments are allowed to levy. The Finance Ministry also recently reiterated there is more to come, saying it plans to boost gambling taxes tenfold by 2020. The tax increase plans were initially leaked in 2016 and caused an uproar among bookmakers in particular, with even big firms saying that they will be driven out of business if...

Intelligence Articles is a premium content section developed for AGB members only featuring in-depth articles on relevant items of interest across the multiple Asia Pacific Gaming jurisdictions. To continue reading, subscribe now.