Gambling Laws in Russia

You'd be forgiven for thinking that Russia's laws might make all forms of gambling illegal or permit the running of monopolies. However, the real situation is a little more varied and interesting.

Which Gambling Activities Are Legal in Russia?

The legal situation is that most types of gambling are illegal or restricted, except for sports betting which is widely available offline and online.

Betting on Online and Offline Casino Games

Casino gambling at land-based establishments has been legal in Russia since 1987. Operators must obtain a licence from the Ministry of Finance and be based within one of the special gaming zones, of which there are currently five.

Online casino gambling is illegal and there are no licences available to either domestic or overseas operators. The state-owned media authority Roskomnadzor is tasked with blocking overseas online gambling sites. Players caught using such sites could face a small fine.

Playing Poker With Real Money

Offline poker has been legal since 1987 and is offered at existing land-based casinos. Standalone poker venues do not exist in Russia. Poker is restricted to casinos because of the country's view that the game is one of chance rather than skill. Many have pointed out that multiplayer poker (e.g. cash games and tournaments) is more about skill than chance and should be regarded as such, but to no avail.

Online poker is illegal in Russia, with Roskomnadzor blocking access to offshore sites offering the game. However, players tend to have little trouble bypassing these ISPs.

Betting on Bingo

Both land-based and online bingo are legal in Russia. Games are operated at various Bingo Boom halls and online on a monopoly basis by the company Stoloto. Bingo is classed as a type of lottery, so it is treated differently than other gambling activities. The government actively discourages any other offline or bingo casinos online from advertising their services to residents.

Purchasing Lotto Tickets, Scratchcards and Other Instant Win Games

Lotteries are also legal and Stoloto is the sole operator of games in Russia, including draws, scratchcards, keno and instant wins. The Ministry of Finance distributes funds from draws to efforts that increase the country's physical activity, such as professional sports, and equipment at schools and sporting events. Playing online lottery games for real money via offshore sites is illegal.

Social Gambling and Online Crypto Casinos

Increasingly popular forms of gambling such as loot boxes and skins are not included in Russian regulations, so players can freely participate. Similarly, no legislation mentions social gambling, such as sweepstake casinos even those that offer the option to buy chips with real money.

Cryptocurrencies are legal and Vladimir Putin signed a historic agreement enabling them to be used for foreign trade payments in 2024. They are not currently accepted in any of the land-based gambling venues though. This restriction sees some residents signing up to online crypto casinos, even though this is deemed illegal.

Is Sports Betting Legal in Russia?

Yes, both land-based and online sports betting are legal. Bookmaker shops and totalisators are scattered throughout the country, with operators required to obtain a licence from the Ministry of Finance. Russia awards licences to multiple operators rather than running a monopoly on the activity.

Online sports betting was legalised in 2016 with licences awarded by the Federal Tax Service. Both domestic and foreign sites can apply, with more than 30 companies currently holding a valid licence to operate. Players may face fines for betting on sports via unlicensed sites.

Fantasy, eSports and virtual sports are not mentioned specifically in the current legislature.

Russia's Minimum Age to Gamble

Residents must be aged 18 or over to legally participate in any type of gambling in the country.

Russian Gambling Tax Regulations - Are Players Liable To Pay?

Regulations dictate that operators pay taxes based on how many games they offer (for land-based venues), how many betting machines (in the case of bookmakers) or simply which licence they have (for online gambling operators). Taxes can vary from 3,000 to 15,000 RUB per electronic gambling machine to 2.5 - 3 million for an online gambling operator.

Winnings obtained from licensed online operators or via the country's lottery are exempt from tax. All other gambling activity winnings are taxed at 13%.

History of Gambling Laws in Russia

Before the formation of the USSR in 1922, gambling was a luxuriant pastime for the upper classes and the rich. During the communist period, gambling was almost entirely illegal apart from the national lottery and a few sportsbooks. After the fall of the Soviet Union in the late 1980s, gambling was substantially unregulated. The sector served as a major source of revenue, which helped overhaul the entire economic system to a free market.

The first legal casino appeared in 1989 and by 1994 that number had exploded to 496 establishments. It's estimated that twice as many venues were operating illegally with only 1 in 3 having a licence, and most operators consistently avoided taxes. In 1998 laws were updated to prevent tax evasion and clean up the industry, increasing revenue and reducing crime.

In 2002 local governments were stripped of the right to issue gambling licences, with responsibility given to the Federal Sports Agency to clean up organised crime. The FSA gave out licences for just $100 with 6,300 venues operating between 2002 and 2005. Despite these efforts, scandals in the sector were still rampant. The government introduced federal law N 244-FZ on December 29, 2006, which made casino venues illegal except for the special gaming zones.

The new laws also tackled online gambling, which was banned outright. Illegal online gambling became rampant as a result, with Russians ignoring continued warnings by the government.

In 2016 the government amended federal law 244 making some forms of online gambling legal.

Key Facts

• Land-based casino and poker gaming are legal at licensed venues which must be based in special gaming zones.

• Online casinos, live casinos and poker sites are illegal.

• Bingo and lottery games are legal but only via Stoloto, which holds a monopoly.

• Sports betting is legal offline and online, but only via licensed operators.