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ISSN: 2158-7051 ==================== INTERNATIONAL JOURNAL OF RUSSIAN STUDIES ==================== ISSUE NO. 9 ( 2020/2 ) |
GAMBLING IN RUSSIA: POLICIES, MARKETS, AND RESEARCH
VIRVE MARIONNEAU*
Summary
This paper provides an overview of Russian gambling market, policies, and research. Following a series of legal reforms since 2006, the Russian gambling market context has become highly restrictive but gradually expanding. The National Lottery and bookmaking industries are increasingly popular but online gambling remains prohibited and casino and electronic gambling machines are only allowed in gambling zones located in remote corners of the Russian Federation. The illegal markets remain significant. The Federal state has been regaining control over the gambling markets to align regulation and profitability, but the new market environment has also created financial interests among private corporations as well as regional treasuries. Research on problem gambling is also becoming more established, although no prevalence studies on gambling problems have been conducted. The paper concludes by considering needs for further policy attention.
Key Words: Gambling, Russia, policy, market, beneficiaries, research.
Introduction
Russia has a long
history of gambling and gambling regulation. In the 18th century,
gambling was not only an aristocratic leisure, but players also paid a special
gambling tax to support orphanages. During the 19th century and despite
legal ambiguity, gambling spread to all socioeconomic groups, particularly the
nobility and military (Tsytsarev & Gilinsky, 2009). It is also during this
era that classical Russian authors took up the topic of gambling, producing world-famous
works such as Alexander Pushkin's The
Queen of Spades (1834), Feodor Dostoevsky's The Gambler (1866) and Ivan Turgenev's Smoke (1867). Particularly Dostoevsky's description has been taken up
in gambling studies as an excellent depiction of the experience of pathological
gambling (Kingma, 2017; Reith, 2006) and as a portrayal of the desire to gamble
as characteristic of the Russian people (Shepel', 2007).
After the
Socialist Revolution of 1917, gambling became publicly condemned and in 1918, the
Bolsheviks maintained that gambling was a bourgeois activity that had no place
in the new communist society. Following from these developments, the government
issued a new decree 'On the prohibition
of the organization of lotteries' closing down all gambling business. Only
two exceptions remained: lotteries that were used to generate income for the
regime (Sohan, 2012), and horse races which were used by the Red Army to breed
horses for the cavalry corps (Tarasov, 2010). The spread of gambling was
minimal, although illegal opportunities flourished among criminals and in large
urban centers and resort towns at the Black Sea (Sohan, 2012; Tsytsarev &
Gilinsky, 2009). Toward the end of the Soviet regime, more gambling
opportunities were introduced. A new 'Sportloto' was introduced in 1976 to
raise funds for the Moscow Olympics in 1980. In 1988, 226 EGMs (electronic gambling machines) were installed in
Intourist hotels around the Soviet Union to cater for foreign visitors, and in
1989 the first Soviet casinos opened in Tallinn and Moscow (Haworth, 2008;
Tarasov, 2010).
The collapse of
the Soviet Union and an ensuing void of a legal and regulatory framework
allowed gambling opportunities to mushroom across the Russian territory
(Tsytsarev & Gilinsky, 2009). By 2006, 6,300 gambling establishments were
operating with a license and about 3,000 lotteries by 300 companies were
available. Although the gambling sector was a major employer, extensive
gambling opportunities created social costs. No population studies on problem
gambling are available from the period, but researchers (Arhameyko &
Kutashov, 2015; Shepel', 2007) have suggested that the prevalence of gambling
problems and associated social costs increased significantly owing to wide
availability of gambling. In addition, state control over gambling and its
taxation were weak and the majority of companies lacked legal licensing (Tsytsarev
& Gilinsky, 2009). The newspaper Pravda (2003) estimated that while government
revenue from gambling was approximately 5-13 million USD, another 300-340
million USD in tax revenue were evaded.
The Russian
government began to regain control of the market as of 2006. On the 4th
of October, president Vladimir Putin proposed new legal measures. This led to the
Federal Law No. 244-FZ of December 29, 2006 'On
state regulation on the organization and management of gambling operations, and
on amending individual legislative acts of the Russian Federation' banning
all casino and EGM gambling in Russia outside of four designated gambling zones
as of 2009, as well as introducing licenses for bookmakers and totalizator
betting. The law sets a strong state control on the gambling industry and
restrictions on operations. Online gambling was also prohibited. In December
2013, an amendment to the Federal law of November
11, 2003 N 138-FZ 'About
lotteries', banned all private lotteries effective as of 2014.
Media commentators
have justified the restrictive legislation in terms of protecting the youth
from gambling problems, reducing social costs of problem gambling, breaking the
ties between legal gambling and organized crime, protecting the lower socioeconomic
groups from gambling, safeguarding the Russian identity, but also as a means of
improving the efficiency of taxation (Vasiliev & Bernhard 2012). This paper
discusses the current situation of gambling in Russia considering these
legislative reforms. Under increased governmental control, legal gambling in
Russia is gradually becoming 'an exuberantly flourishing branch' (Koltsova et
al., 2018: 199). In what follows, the focus is on drawing a general picture of
the gambling context of Russia by analyzing the impacts of the policy framework
on the legal gambling markets, the beneficiaries of legal gambling, and the
state of gambling research in and on Russia.
Current markets and policies
Following the
legislative reforms that have taken place in Russia since 2006, the legal
gambling markets currently consist of three sectors: state lotteries, casino
and EGM operations in gambling zones, and bookmakers that operate both online
and offline. All other online gambling remains prohibited. A population survey
(N=1,602) from 2017 commissioned by Bookmaker Ratings and conducted by the
Levada Centre found that 11 percent of the Russian adult population had gambled
during the previous year. The most popular games were the lottery, followed by
cards, casinos, EGMs and betting (Reiting bukmekerov, 2017). The popularity of
gambling had somewhat increased from a previous survey conducted in 2009 (Fond
Obschsestvennoe Imenie, 2009) in which 8 percent of respondents (N=2,000) had
played during the previous six months.
Lotteries
In December 2013, an
amendment to the 2003 law 'On lotteries' was passed. Effective as of 2014, the
law banned all private lotteries. In 2013, the Russian state budget had lost an
estimated 10 billion RUB a year due to unpaid taxes from gambling companies.
(Newsprom, 2016). As of 2014, only state lotteries have been allowed to operate
in the market. Two ministries operate state lotteries: The Ministry of Finance
under the name Sportloto and the Ministry of Sports under the name GSL (Gosudarstvennye
sportivnye loterei, State Sports Lotteries). The monopoly license to distribute lottery products for both lotteries
is granted to the privately owned and operated Stoloto (lotto one hundred). In
2017, the turnover of GSL and Sportloto amounted to 37 billion RUB, of which
GSL made up 34.6 billion RUB (93.5 percent market share). Growth has been
rapid. In 2016, the turnover of the state lotteries was 24.8 billion RUB (up
from 13.6 billion RUB in 2015, mainly due to a doubling of ticket prices) (Timelottery,
2018).
Casinos and EGMs
As of 2009, after
the transition time provided by the 2006 law, casino and EGMs operation is
legal only in designated gambling zones. The aim was to develop Las Vegas type
destination gambling at distance from major cities. The zones are located in Kaliningrad,
Altai, Primorye, and Krasnodar territory (Azov City, later Sochi). The fifth
gambling zone in the Crimea was announced in 2014, but the political situation
surrounding the peninsula has slowed down developments (Dolzhenkova & Kravchenko,
2015) (see Figure 1).
Figure 1: Gambling zones in Russia
1. Kaliningrad, 2. Primorye, 3. Altai, 4. Krasnodar, 5. Crimea
(Map adapted from the Russia edcp location map.svg
(by Uwe Dedering), CC BY-SA 3.0,
https://commons.wikimedia.org/w/index.php?curid=31700470.)
The gambling zones
have been developing rapidly, with major investments and construction underway
particularly in Primorye in the Russian Far East and at the Black Sea shore in
Krasnodar. In 2016, Azov City was the most profitable gambling zone (Betting
Business, 2017), and it was also the first to open a casino. However, in
October 2018, Prime Minister Dimitri Medvedev signed an order confirming the
liquidation of the Azov City gambling zone by the end of 2018 because of the
creation of a new gambling zone in Sochi. The move was prepared since 2015
despite opposition by providers located in Azov City, to maintain tourism in
the city of Sochi after the 2014 Winter Olympics. In addition to Krasnodar, the
Primorye zone is particularly attractive to investors owing to its geographical
location close to major Asian population centers, and tax incentives offered to
investors (Kozlovskaya & Kravchenko, 2015).
The centrally-led
establishment of the gambling zones met with initial resistance particularly in
the Altai Territory and Kaliningrad, where local officials attempted to persuade
the federal government to build the zones elsewhere (Haworth, 2008). The
development of the zones has also faced logistical problems due to lacking
infrastructure and unwillingness of operators to relocate in remote areas (Haworth,
2008; Shkolik, 2009). Kozlova (2014) has argued that the need for major
investment in developing the gambling zones has led the Russian gambling
industry to favor large corporations and businesses and created inequalities
between regions. Consumers appear to have nevertheless welcomed the legislative
change. In a 2009 population survey (Fond Obschsestvennoe Imenie, 2009), 73 percent of respondents considered the gambling zones positively.
Bookmakers
A licensing system
for land-based bookmakers was defined in the 2006 gambling law. Licenses are
given out by the Federal Tax Service. A Federal Law of July 21, 2014 No. 222-FZ
'On amendments to the Federal Law
[244-FZ]' also introduced the concept of interactive bets, paving the way for
online bookmakers. The first online operations were launched in 2016. The
bookmaking industry is currently one of the fastest growing sectors of the
Russian economy (Reiting bukmekerov, 2017), but also strongly controlled. Russian bookmakers accept bets on both sports and
horse racing, although horse racing is significantly less popular.
Licensed
bookmakers are required to be members of self-regulatory organizations,
although the Ministry of Economic Development is preparing to abolish this
system as it overlaps with the regulatory work of the Federal Tax Service
(Calvinayre, 2018). Online bets are also processed via so-called TSUPIS systems
(Payment Processing System for Online Gambling Transactions), which are bodies
responsible for processing all interactive gambling transactions in Russia. This
system has required punters to register both on the bookmaker website and then
to provide the same information for the TSUPIS payment system that is
affiliated with that bookmaker. However, the complexity of this registration
process has led players to unlicensed offer and a bill to simplify the
registration has recently been approved by the Duma (Calvinayre, 2019). The
same bill will also improve consumer protection online, as it sets limits for
individual bets and for weekly transactions (Calvinayre, 2019).
In 2017, 1.9
percent of the Russian adult population had placed a bet within the last 12
months (Reiting bukmekerov, 2017). The estimated turnover of the bookmaking
industry, both legal and illegal, amounted to 677 billion RUB (10.1 billion
USD). The Reiting bumekerov (2017) report estimates that 60 percent of this was
gambled on the legal market and 40 percent on the illegal market. Currently, 29
bookmaking companies hold an official license for bookmaking in Russia. 11 of
these also accepts bets online. Online betting represents approximately 62 percent
of the market. Operators are both Russian-owned and international corporations
that have established a legal entity in Russia. However, according to Reiting
bukmekerov (2017), the lack of transparency in Russian gambling policy has
somewhat hindered the expansion of the sector.
Illegal markets
The Russian underground
gambling market is estimated to be significant (eg., Kozlova, 2014). The
creation of the gambling zones has not thwarted casino and EGM operations, but
rather moved them underground (Anosova & Kravchenko, 2015; Haworth, 2008). Between
2009 and 2011, the Prosecutor's office of the Russian Federation uncovered
25,031 illegal lottery clubs and 3,900 illegal casinos (Sohan, 2012). The
underground casino market is still estimated to be worth about 6 billion USD
(Newsprom, 2016), while the underground bookmaking market, including the VIP igry s ruku (hand-held games) is
estimated to be worth about 520 billion RUB (7.9 billion USD) (Reiting
bukmekerov, 2017).
As online gambling
in Russia is illegal, save for the online operations of bookmakers and National
lotteries, a large proportion of online gambling takes place on unlicensed
websites. Control takes up significant state resources and has been argued to bear
a risk of corruption (Serikova & Serikov, 2013). Russia nevertheless
continues its efforts to stamp out illegal gambling via IP blocking and
blacklisting. An amendment to the Criminal Code (Federal Bill 478806-6 of
December 2014) imposed strict penalties for non-compliance to gambling
businesses operating outside the gambling zones or online (also Koltsova et
al., 2018). Draft laws have also been submitted to penalize Russian nationals
participating in unlicensed gambling and imposing sanctions on payment providers.
By 2018, the Federal Service for Supervision of Communication, Information
Technology and Mass Media of the Russian Federation (Roskomnadzor) had blocked
over 76,000 online domains (Focus Gambling News, 2018), including some of the
largest European operators such as Betfair, Unibet and Ladbrokes.
Taxation and beneficiaries of gambling
The gambling
surplus refers to the excess amounts that remain after winnings and all costs
have been paid (also Young & Markham, 2017; author, 2019). This extra money
is usually directed to investors, company profit, and to states via taxation
and other levies. In Russia, the gambling surplus is similarly divided between regional
state budgets via taxation, earmarked contributions, and company and/or
investor profit. While the share of profit and dividends remains marginal or
negative owing to the relative immaturity of current market structures, the
surplus collected to the Russian society is set by law via a mandatory
percentage of GGR (Gross Gambling Revenue, total gambling revenue minus
winnings) to be paid either in taxes or as contributions (author, 2019).
Russia is a
federal state, and the taxation of gambling takes place mainly at the regional level.
As in the major part of Europe, the organization and conduct of gambling are
exempt from VAT. Income and expenses related to gambling are also disregarded
in the calculation of corporate tax. Instead, winners pay personal income tax
(NDFL, 13 percent for residents in Russia) on gambling winnings, mostly
withheld at source. The NDFL is regional and partly municipal (Koltsova, 2018).
The bulk of tax
revenue raised from gambling comes from the gambling tax. The 2004 Law 142-FZ 'On gambling tax' sets that the proceeds
are transferred to the federal subjects of Russia. The tax is counted based on
the number of taxable items, determined in the Tax Code of the Russian
Federation (nalog.ru) (see Table 1). These include machines, counters, or
processing centers, but does not apply to lotteries. The tax rates for these
vary between regions, within the range set by law. However, most federal
subjects have applied the highest rate (nalog.ru). The law changed on the 1st
of January 2019, doubling the taxation rates (federal tax law of 25th
of December 2018, N 117-F3).
Table 1: Taxation of gambling objects in Russia
(nalog.ru, Law N 117-F3)
Type of game |
Monthly tax 2004-2018 |
Monthly tax 2019- |
EGM |
1,500 - 7,500 RUB |
3,000 - 15,000 RUB |
Table game |
25,000 - 125,000 RUB |
50,000 - 250,000 RUB |
Tote processing centre |
25,000 - 125,000 RUB |
50,000 - 250,000 RUB |
Bookmaker processing center |
25,000 - 125,000 RUB |
50,000 - 250,000 RUB |
Tote betting point |
5,000 - 7,000 RUB |
10,000 - 14,000 RUB |
Bookmaker betting point |
5,000 - 7,000 RUB |
10,000 - 14,000 RUB |
Online gambling processing center |
n/a |
2,500,000 - 3,000,000 RUB |
In 2016, the tax
on gambling businesses amounted to 809.4 million RUB, up from 623 million RUB
in 2015, mainly due to increases in the numbers of taxable objects. The largest
share of this revenue (404.9 million RUB) came from the casino sector, followed
by bookmakers (379.9 million RUB) and totalizator betting (24.5 million RUB)
(Betting Business, 2017). Between 2013 and 2015, the number of gambling
operators paying tax had grown from 39 to 728, or an increase of 1,867 percent.
The most significant growth came from a rise in the number of bookmaker betting
shops. Their number increased in the period by a factor of 116. The least
increase was registered in gambling tables, which only rose by a factor of 2.1.
In 2015, bookmaking raised 61.33 percent of gambling taxes. EGMs raised 20.29 percent,
Table games 16,27 percent and tote betting shops 2.11 percent (Koltsova et al.,
2018 based on information provided by the Russian tax office NALOG).
These amounts are
nevertheless comparatively low. Casinos operating in gambling zones were
initially expected to pay about 3-7 percent of their turnover in gambling tax (Kozlovskaya
& Kravchenko, 2015), which is significantly less than in most other
countries and jurisdictions (e.g., Egerer et al., 2018; author, 2019). For
example, in France, casinos may pay up to 80 percent of their GGR in tax
(Marionneau & Berret, 2018). According to Kozlova (2014), as the gambling
industry is developing in favor of large corporations, this also limits the
potential to collect tax revenue. The low return to society is attributed to
less mature markets, but the Russian taxation system by gambling item also
appears to be discouraging to smaller operators and to benefit larger
interests. As the Russian market becomes more established, it is therefore also
likely to become more concentrated in the hands of a few companies, as has been
the trend in other countries previously (e.g., Markham & Young, 2015).
Earmarked
contributions apply to National Lotteries and bookmakers. National Lotteries
contribute 10 percent of their GGR (or approximately 5 percent of turnover) to
sports-related earmarked causes, including sports infrastructure, youth sports
and veteran sports. This share is also comparatively low. European lotteries
return an average of 26.2 percent of their turnover to society via taxes or
earmarked contributions (European Lotteries, 2017). The low contribution to
society is partly explained by high cost of sales related to subcontracting
distribution to Stoloto which represents up to 30 percent of GGR. (Kommersant,
2015). This is a high figure in comparison to other European lottery companies,
which average distribution costs of about 15 percent (author). In addition to
lotteries, bookmakers are required to make contributions to professional and
youth sports. This sum represents 5 percent of profits since 2017 (Reiting
bukmekerov, 2017). Bookmakers are also significant sponsors in Russian sports
leagues.
The main financial
beneficiaries and stakeholders of gambling proceeds in Russia are summarized in
Table 2.
Table 2: Summary of the markets and beneficiaries of
gambling in Russia
Sector |
Operation |
Gambling surplus |
Main beneficiaries |
Lotteries |
State (Ministries via public companies and private
distributor) |
10 % of GGR to earmarked causes (sports). Taxation
of winnings to regional budgets |
Regional budgets (taxes), sports associations
(contributions), Distributor (stoloto) |
Casinos and EGMs |
Private companies with license (Russian and foreign
investors) |
Gambling taxes and taxes on winnings to regional
budget. Other corporate taxation. |
Regional budgets (taxes), private profit (operators,
investors) |
Bookmakers |
Private companies with license (Russian and foreign
but legal entity in Russia) |
Gambling taxes and taxes on winnings to regional
budget. Other corporate taxation. 5 % of GGR to earmarked causes (sports). |
Regional budgets (taxes), sports associations
(contributions, sponsorships), private profit (operators) |
Research on gambling and problem gambling
Russian gambling research
has increased significantly after the collapse of the Soviet Union and
particularly since the legal reform of 2006. A significant body of research
exists particularly on the historical gambling culture in Russia during the 18th
and 19th centuries (e.g., Keenan, 2012; Helfant, 2001, 2003; also
Tsytsarev & Gilinsky, 2009) and the history of gambling regulation (Kovtun,
2009; Sohan, 2010; 2012). The legal ramifications of the Russian gambling
system, the relationship of gambling to organized crime and corruption, as well
as illegal gambling operations have also attracted research attention (e.g.,
Mosechkin, 2015; Liholetov, 2014; Vasiliev, 2014; Bondarenko & Terechin,
2011).
Research interest
in problem gambling (ludomania or igromania) has also increased, although
it has been limited by a lack of statistical, epidemiological or prevalence
studies. The first clinical definition of pathological gambling in Russia was
drawn in 1990 based on metrics used in problem gambling screens in western
contexts (see Tsytsarev & Glinsky, 2009). Research interest in the topic
has particularly expanded during the 2010s alongside developments in better
accounting for gambling problems in treatment and in legislation. An amendment
to Article 30 of the Civil Code of the Russian Federation on the 1st
of March 2013, established that in addition to those who abuse alcohol and
drugs, the legal capacity of pathological gamblers may be restricted, and they
may be placed under guardianship (see also Serikova & Serikov, 2013). In
2018, the Ministry of Finance submitted a draft law that would allow gamblers
to self-exclude from gambling establishments, and to set spending limits at
licensed bookmakers (Betting Business, 2018). The currently prepared bill to
simplify registration with bookmakers accomplishes this by setting limits on
bets and transactions (Calvinayre, 2019). Age limits have also been set to 18
for lotteries and bookmaker bets.
Problem gambling research
in Russia has been heavily focused on the root causes of gambling problems, and
related early identification and intervention (also Tsytsarev & Glinsky,
2009). Recent studies have looked at pathological gambling as a brain disease
(Andreyev & Nazarova, 2014), but also through psychoanalysis (Avtonomov,
2009), social psychology (Karpov, 2011) and as a motivational craving that has
gambling as its goal object (Tsytsarev & Glinsky, 2009). Zaitsev and
Shaydulina (2003) have described the development of problem gambling through
game cycles that vacillate from abstinence to fantasies, decision to play and
implementation. According to the authors, erroneous beliefs and an irrational
attitude contribute to maintaining the cyclical mechanism.
Researchers have
also looked at gambling as a manifestation of other underlying psychiatric
disorders and comorbidities such as psychological trauma (Tsytsarev &
Glinsky, 2009) and suicidality (Bisaliev et al., 2011). Malygin et al. (2010)
studied 110 pathological gamblers in Russia between 2006 and 2008 and found
that 36 percent had co-morbid alcoholism.
The treatment of
problem or pathological gambling in Russia is organized based on international
experience, and consists of both pharmacotherapy and psychotherapy, most often cognitive-behavioral
therapy or 12-step programs (Arhameyko & Kutashov, 2016). Treatment is
organized by psychological and medical institutions and private clinics
alongside alcohol and drug abuse, as well as gamblers anonymous groups.
No prevalence
studies on pathological gambling have been conducted in Russia, but some
opinion polls on attitudes toward gambling are available. Kassinove et al
(1998) studied Russian attitudes toward gambling during the 1990s which was a
period of extensive availability of gambling. Results showed that attitudes to
gambling (N= 171) were mainly positive and similar to those in the United
States. Based on available evidence, attitudes harshened since. A 2007 opinion
study conducted by The Public Opinion Foundation around the 2006 legal reforms
restricting access to gambling showed that 20 percent of respondents gambled,
and 50 percent of respondents supported removing EGMs from public spaces (see
Shepel, 2007). Some years later, Holma et al. (2011) investigated perceptions on
addictions and social problems in four northern contexts, including St.
Petersburg residents (N=1,023). In comparison to results obtained from Sweden,
Finland, and Canada, the St. Petersburg participants considered gambling a more
serious social problem. This result was attributed to extensive media attention
given to gambling during the study period, following the law to remove casinos
outside four gambling zones. Finally, a 2014 survey (Liholetov, 2014) showed
that 60 percent of respondents had a negative attitude to gambling while only
5.5 percent regarded gambling positively. 80.6 percent of respondents expressed
particular concern for minors.
Despite the significant
policy changes that have taken place in Russia during the 2000s, there have not
been many evaluation studies on their impacts. One survey study conducted in
the city of Tomsk in 2012 (N=297) showed that after the removal of casinos and
EGMs from the area, the number of players gambling offline decreased by a
factor of three to six depending on the age group. However, at the same time
participation in online gambling had increased particularly among male
respondents (Serikova & Serikov, 2013). Research on the effects of
responsible gambling measures or policies have nevertheless not been conducted.
Conclusion
Russian gambling
has undergone several changes in the last decade. After the dissolution of the
Soviet Union, and an ensuing regulative void, gambling opportunities mushroomed
across the Russian territory, and brought along increasing problems but also
difficulties in collecting tax from operations. As of 2009, a series of legal
reforms has again changed the gambling landscape in the country. Although the
impacts of these legislative changes have not been extensively studied, the
popularity of gambling and the profits made by the Russian gambling industries
are growing, alongside the surplus collected for beneficiaries of gambling. A
new wave of popularity of gambling is taking place in Russia, and this
development is likely to continue as markets become more mature. However, based
on the descriptive account on gambling in Russia presented in this paper, it is
possible to identify three problematic features in the Russian market that
require further political and research attention.
First, illegal and
unlicensed gambling still hold a significant share of both online and offline
markets in Russia. Blanket bans on online gambling have been shown to be
ineffective in other jurisdictions, leading players to gamble on unlicensed
websites that may not have a high standard of consumer protection while not
benefiting to the public purse (e.g., Sulkunen et al., 2019). Koltsova et al.
(2018) have suggested that increasing revenue needs are likely to increase the
number of licenses granted to operate gambling in Russia in the near future. Although
Russia exerts a comparatively strict control over the Internet (Vendil Pallin,
2017), this may also include opening the online markets.
Second, the role
of gambling-related problems is still relatively unknown in Russia, mainly due
to a lack of statistical evidence. Although the law of 2006 was primarily
justified in terms of public interest and the protection of vulnerable groups,
there are no prevalence studies available to this effect. In 2009, Tsytsarev
and Gilinsky (2009) outlined a need for more treatment and help facilities for
problem gamblers in both inpatient and outpatient settings, preferably funded
by the gambling operators, as well as a need for warning and campaigns on
gambling prevention particularly amongst the young. Even though gambling research
is becoming more established in Russia, these most suggestions appear to be
still valid today as they are in many other countries (Sulkunen et al., 2019). However,
some development has taken place, particularly in the form of age and spending limits
on gambling products.
Third, and again
like in other countries (e.g., Egerer et al., (eds), 2018; author), several stakeholders
have an interest in gambling revenue and the gambling surplus in the private
and the public sectors. The licensed gambling markets, consisting of bookmakers
and casinos, benefit domestic and international investors and corporations, and
the market appears to be concentrating in the hands of a few large operators. However,
in comparison to most other European countries, the Russian specificity appears
to be the division of the gambling surplus to society mainly via regional
taxation. As elsewhere, in Russia gambling provides a significant revenue
source for governments, and an opportunity to reduce budgetary deficits without
introducing or raising taxes (Serikova & Serikov, 2013). Gambling is also
regulated by the Federal Tax Service in Russia, suggesting that the financial
justification is significant. However, the 2009 reform saw 78 of the 83 Russian
regions and territories lose this source of revenue, creating inequalities
between Federal subjects. Shkolik (2009) has estimated that the revenue loss
from the removal of casinos and EGMs in Moscow and the Sverdlovsk region was
about two percent of their respective local budgets that were already on
deficit. The tax plan of the Ministry of Finance has suggested increasing the
taxation of bookmakers tenfold to fill regional budgets (Kommersant, 2017), but
this will also likely mean significant increases in gambling offer.
This paper has
been limited to a descriptive account of gambling in Russia. The focus has been
particularly on the market environment and regulatory context, as well as on
describing the taxation and financial interests related to the gambling sector.
The paper has also presented an overview on the prevalence and treatment of
problem gambling, but further discussion on this topic has been restricted due
to inexistent data. More research is therefore needed to estimate the levels of
gambling problems in Russia, but also the impacts of the restrictive
legislative reforms on gambling-related problems. This would also shed light on
the on-going debate on how restrictions on availability impact the levels of
problem gambling (see e.g., Sulkunen et al., 2019). The paper has nevertheless
provided a summary on current gambling research in Russia, as well issues that
will need further political attention.
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*Virve Marionneau - Ph.D., Researcher, Centre for Research on Addictions, Control and Governance (CEACG) University of Helsinki, Faculty of Social Sciences e-mail: virve.marionneau@helsinki.fi
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