In what will come as good news to the iGaming industry, Russia’s Ministry of Finance has decided to reduce the tax rate on licensed sports betting operators in the country to 1%.
Earlier in the year, the country’s government has brought into effect a 5% tax on sports betting revenue.
Under this law, operators in Russia had to pay the government a minimum quarterly payment of RUB15 million (€218/300/US$234,000).
Soon, that figure was dropped to 3% in order to give the companies a tax break. Now, there has been a further reduction to 1%.
According to several experts, the government decided to do so after several operators made representations highlighting the face various other taxes and regulatory fees that they have to pay.
This move will definitely boost the Russian iGaming market. More operators will now be willing to invest and existing ones will be able post much greater profits.
There is no denying that this is a solid move by the Russian government. However, the long-term benefits of this move need to measure in due course of time.