The Russian Finance Ministry has unveiled a draft budget that introduces a new gambling tax and raises the standard value‑added tax (VAT) to fund state spending. Under the proposal, a 5 % tax will be levied on all gambling stakes, and bookmakers will have to pay a profit tax at the standard 25 % rate. This is part of a broader effort to boost non‑energy revenue and support state expenditures.
The current tax system for bookmakers relies on a fixed regional gambling tax that varies by location, a structure critics say does not reflect the scale of turnover or the actual financial results of bookmakers’ operations. The new system would calculate tax based on both turnover and profit under the general corporate tax regime, aiming to address these shortcomings.
In Russia, gambling is heavily regulated and confined to special zones and licensed bookmakers; outside these zones, only sports betting and lotteries are generally permitted. Industry estimates indicate that legal gambling zones generated about 2.6 billion rubles (≈ $28 million) in tax revenue in 2024. Additionally, authorities shut down 195 illegal clubs in the first half of 2025, underscoring ongoing efforts to combat illicit gambling.
The proposed tax changes are part of a wider package of measures to increase non‑energy revenue. The standard VAT rate is set to rise from 20 % to 22 %, while a reduced 10 % rate will be maintained for socially important goods. These adjustments are intended to support state spending and ensure the long‑term sustainability of Russia’s finances.
The draft budget is currently under consideration by the government and parliament and may be modified before final adoption. Its fate will be decided in the coming weeks, and the proposed tax changes are likely to have significant implications for the gambling industry and the country’s overall financial landscape.
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