The Russian Finance Ministry has unveiled a draft budget plan that introduces a new gambling tax and increases the standard value added tax (VAT) to fund state spending. Under the proposed plan, a 5% tax will be levied on all gambling stakes, while bookmakers will be required to pay a profit tax at the standard 25% rate. This move is part of a broader effort to boost non-energy revenue and support state expenditure.
The current tax system for bookmakers is based on a fixed regional gambling tax, which varies depending on location. However, this system has been criticized for not accurately reflecting the scale of turnover or the real financial results of bookmakers’ operations. The new system aims to address this issue by calculating tax based on both turnover and profit under the general corporate tax regime.
In Russia, gambling is heavily regulated and restricted to special zones and licensed bookmakers. Outside these zones, only sports betting and lotteries are generally permitted. The draft budget, which is currently under consideration by the government and parliament, may be modified before its final adoption.
According to industry estimates, legal gambling zones generated around 2.6 billion rubles ($28 million) in tax revenue in 2024. Additionally, the authorities have shut down 195 illegal clubs in the first half of 2025, highlighting the ongoing efforts to combat illicit gambling activities.
The proposed tax changes are part of a wider package of measures aimed at increasing non-energy revenue. The standard VAT rate is set to rise from 20% to 22%, while a reduced rate of 10% will be maintained for socially important goods. These changes are intended to support state spending and ensure the long-term sustainability of Russia’s finances.
The draft budget’s fate will be decided in the coming weeks, with potential modifications before its final adoption. As the Russian government continues to navigate the complex landscape of gambling regulation, the proposed tax changes are likely to have significant implications for the industry and the country’s finances as a whole.
