Russian Finance Minister Anton Siluanov has proposed legalising online casinos as the government searches for new revenue sources to address a gaping fiscal deficit. The proposal, presented to President Vladimir Putin, comes as the Kremlin looks to supplement state finances amid falling international oil prices. Officials estimate the move could generate significant annual income while reshaping Russia’s gambling market.
Russia Proposes Legalising Online Gambling: Key Insights
- Finance Minister Anton Siluanov has proposed legalising online casinos as a new revenue source as the fiscal deficit increases. The proposal aims to cushion a sharp decline in revenue from oil sales and higher public spending.
- The proposal could generate around RUB 100 billion (approximately €1.1 billion) annually and would include a centralised operator, a minimum gambling age of 21, and a tax rate of at least 30% on licensed operators.
- Lawmakers have already raised taxes and VAT to support public finances. Online casino regulations remain under discussion, with no official decision announced by the Kremlin.
Finance Ministry Proposes Legalising Online Casinos
Anton Siluanov, Russia’s Minister for Finance, has presented a proposal to President Vladimir Putin to legalise online gambling. Officials estimate that legal online gambling could generate around RUB100 billion (€1.1 billion) per year for the state budget. The proposal aims to establish a centralised operator to oversee online casinos.
Additionally, the legal minimum age for betting would be 21, and a tax rate of at least 30% would apply to licensed operators’ earnings. Online casinos are currently banned in Russia, with legal gambling limited to bookmakers, betting shops, and physical casinos in four designated zones. A bill establishing a self-exclusion system was passed by parliament in December.
Licensed casinos are restricted to the Siberian republic of Altai, the Baltic exclave of Kaliningrad, Krasnaya Polyana near Sochi, and Artyom in the Russian Far East. The latest proposal aims to route online gambling through a unified system similar to the one used for legal bookmakers.
Russia’s public finances have been strained by rising military spending linked to the war in Ukraine and weaker energy revenues. Military expenditure rose from 3.6 percent of GDP in 2021 to 7.2 percent in 2025, with some estimates placing war financing closer to 10 percent of GDP.
Budget Pressure and Broader Revenue Measures Behind Calls for Reform
Russia raised its budget deficit target twice last year to 2.6% of GDP and is aiming for a 1.6% deficit this year. Since 2022, authorities have approved tax increases totalling at least RUB 27.6 trillion (approximately €302 billion), and economists say further rises are likely.
On January 1, the government increased VAT to 22% from 20%, targeting an additional RUB 4.4 trillion (roughly €48.2 billion) in revenue from 2026 to 2028. It removed some VAT exemptions for small businesses to raise about RUB 200 billion (approximately €2.19 billion).
New taxes on the betting industry are expected to lift annual revenue from RUB 1 billion (roughly €10.9 million) to RUB 60 billion (nearly €657 million). Beyond gambling, the government has targeted consumer goods imports arriving from China via Central Asian states using Eurasian Economic Union free trade arrangements.
Deputy Industry Minister Roman Chekushov explained that authorities will also focus on large consignments arriving through cross-border electronic trade platforms. Analysts warn that higher taxes could trigger a ‘tax spiral’, in which business activity reduces, leading to lower future revenues and further tax hikes.
Supporters of the online casino proposal argue it could draw illegal gambling into a regulated system while boosting revenues. Meanwhile, critics point out the social costs of gambling. As the Kremlin weighs its options, any official confirmation has yet to arrive.