Recently, the Russian government is brewing a series of more stringent measures to curb the spread of illegal online gambling activities. These measures include blocking gambling apps and websites, as well as restricting cryptocurrency-based payment methods.
According to Yevgeny Masharov, a member of the Russian Civic Association, the government has recently held meetings to discuss the necessity of strengthening the regulation of online gambling, especially to protect minors from its influence.
Masharov pointed out that the trend of gamification makes gambling content more attractive to young users, and illegal operators often bypass identity and age verification, bringing competitive pressure to the legal gambling market.
To strengthen regulation, Russia has established a new government committee aimed at improving coordination between major national agencies. This committee includes the media regulatory authority Roskomnadzor, which has the power to block IP addresses, the anti-money laundering agency Rosfinmonitoring, and the Central Bank, which is studying the prohibition of cryptocurrency-based gambling payments.
Furthermore, the Russian Ministry of Finance has drafted a new bill requiring banks and payment processors to block transactions with international online gambling companies. According to the bill, the Federal Tax Service (FTS) will create a blacklist of companies and individuals involved in illegal online gambling activities and send it to domestic financial institutions to prevent future transactions.
Although Russia allows the opening of retail betting outlets, physical casinos are limited to specific areas such as Altai, Kaliningrad, Primorsky Krai, Sochi, and Crimea. Online gambling is limited to sports betting. However, the large market size and limited legal competition still attract unlicensed operators.
As the government intensifies its crackdown on illegal online gambling, it is expected to have a profound impact on the related industries. Legal operators need to closely monitor policy changes, adjust their operational strategies, and adapt to the new regulatory environment.
