Betting licensing regulation has been available in Russia since 2006. Rules impose a number of limitations for companies willing to run betting activity. A license ensures having no problems with the law as well as positively influences customer acquisition, as only registered companies can place advertising (and sponsor sports events), and their customers are legally protected.
Bookmaker Ratings provides a list of 18 brands that hold a license and legally work in the Russian Federation.
Betting companies have been operating in Russia since 1991. There was no licensing at that time and their activity was regulated by the Civil Code of Russia and the Law on enterprises and entrepreneurship.
The first betting license in Russia was issued in 2002, when new rules came into effect. At that time, the State Committee for Sports was responsible for licensing.
In 2006, rules changed again. A special gambling law was adopted, called “On state regulation of activities on organization and conduct of gambling”. The law tightened the regulation aimed at companies introducing a number of requirements. Licensing was turned over to the Federal Tax Service.
With minor amendments, the law is still in effect as well as the licensing procedure.
To legalize a betting business today, one has to comply with a number of rules:
The Federal Tax Service adds every licensed bookmaker to the register and all monetary operations should be conducted through the official payment service called Interactive bets accounting center. In addition, all licensed bookmakers have to enter the Self-Regulatory Organization.
However, there is another method – running a partnership business. A large betting company will act as a prior party, and a small company will act as a partner representing its interests through a franchise. As the number of betting shops is not restricted for a bookmaker, a large bookmaker may have any quantity of such partners. A partner company does not need to hold a license (the bookmaker has to reissue the license), but it will have to abide by the restrictions placed by the bookmaker.
The benefit of obtaining your own license is that you will be able to run business on your own terms and promote your brand. However, you will have to undertake a number of steps:
1. Make sure that your company will be able to fulfil terms listed above;
2. Declare existing betting shops;
3. Check the equipment (checkout counters, check printers) and make sure that it complies with requirements;
4. Collect the required package of documents (listed here). Make sure that all documents are original and valid; otherwise, the processing of application will take longer;
5. Send the package of documents to the Federal Tax Service.
Documents are reviewed within 45 days.
Betting license is classified as a high cost state service in Russia:
There are intermediaries that will take on the burden of going to required institutions as well as consult you on the needed documents. Their assistance will cost you around 150,000 RUB.
However, do not forget that you must have your own capital and funds for bank guarantee, which equals to 1.5 billion RUB. Adding expenditures for rent and purchasing of equipment, a conclusion can be drawn that betting business requires an impressive sum of money for a start.
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