The Russian Finance Ministry has just proposed applying a 5% tax on all gambling betting, while increasing the value-added tax (VAT) from 20% to 22% to expand non-energy revenue to serve public spending.
According to the draft budget for the 2026-2028 period, in addition to the betting tax, bookmakers will have to pay corporate profit tax at the standard rate of 25%. This new mechanism replaces the current form of local fixed tax - which is considered not reflecting the actual revenue or financial results of the banks.
Currently, gambling activities in Russia are strictly controlled, only legal in some special areas and with licensed bookmakers. Sports betting and lottery are still allowed to operate on a wider scale.
The Russian Finance Ministry said tax reform is aimed at ensuring fairness and increasing budget revenue, as the government looks to reduce its dependence on energy revenue. In parallel, Russia is also calculating to reduce the number of direct inspections of licensed gambling establishments, replacing them with preventive monitoring.
According to industry estimates, in 2024 alone, legal gambling areas will bring in about 2.6 billion rubles (equivalent to 28 million USD) in taxes. In the first half of 2025, authorities have closed 195 illegal gambling areas.
The budget bill is being considered by the Russian government and parliament, and may be adjusted before being officially approved. If applied, bookmakers and bookmakers in Russia will have to prepare for a "transformation" in costs and tax obligations.
