Double taxes on gambling business will be submitted to the State Duma

State Duma deputies from the “A Just Russia – For Truth” faction are poised to introduce a significant legislative initiative aimed at reforming the taxation framework for the gambling sector. The newly proposed bill seeks to double existing tax rates on gambling activities, reflecting a robust response to the industry’s substantial profit margins in 2023. This legislation is co-authored by party leader and State Duma deputy Sergei Mironov, with a formal submission expected on Friday, as reported by RIA Novosti.

Overview of the Proposed Taxation Framework:

The explanatory note accompanying the bill articulates the rationale for increased taxation, citing the excessive profits reported by gambling enterprises this year. The proposed tax structure delineates specific rates based on various types of gambling facilities:

• Gaming Tables: Tax rates are proposed between 100,000 and 500,000 rubles per table.
• Slot Machines: A tax range of 6,000 to 30,000 rubles per machine.
• Processing Centers (Bookmakers/Totalizators): Proposed tax rates of 100,000 to 500,000 rubles per processing center.
• Interactive Bet Centers (Totalizators): Suggested rates from 4 million to 5 million rubles.
• Interactive Bet Centers (Bookmakers): Tax rates set between 9.5 million and 10 million rubles.
• Bet Acceptance Points (Totalizators/Bookmakers): Proposed tax of 20,000 to 28,000 rubles per point.

In jurisdictions lacking specific tax laws, default rates proposed are: 250,000 rubles for gaming tables, 15,000 rubles for slot machines, and 9.5 million rubles for interactive bet centers of bookmakers, among others. Such measures aim to enhance fiscal contributions from the gambling sector significantly.

Justification Behind the Tax Increase:

Mironov emphasized that the proposed changes would, on average, result in a twofold increase in tax obligations across the various sectors of the gambling industry. He stated, “Our party has consistently advocated for higher taxation on casinos and bookmakers, a stance supported by their escalating revenues.” Notably, the revenue figures reveal remarkable growth; for instance, the income of Fonbet surged to 435.6 billion rubles, and Winline saw an extraordinary 6.5-fold increase in revenue, reaching 277.3 billion rubles. Overall, Russian bookmakers recorded a 39% revenue increase year-over-year, totaling 1.224 trillion rubles in 2023.

Implications for Society and Budget Allocation:

Mironov articulated concerns regarding the social repercussions of the gambling business, emphasizing that this sector merely redistributes existing wealth rather than creating new economic value. This, he argues, exacerbates social inequality and contributes negatively to public wellbeing, as evidenced by rising gambling addiction rates.

In conclusion, the revenue generated from increased taxation in the gambling industry could provide critical funding for regional budgets, which are currently under financial strain. Mironov asserted that these additional resources could be instrumental in enhancing public sectors such as education, healthcare, and support for vulnerable populations, including low-income citizens and families affected by military service. Thus, the proposed tax reform not only aims to balance the budget but also seeks to create a more equitable societal framework.