Russian Authorities Hitting Casino Jackpot Winners with 13% Tax Rates

Russian authorities are charging casino jackpot winners with 13% in taxes, with a “significant portion” of gamblers’ winnings ending up in Treasury coffers.

The Russian media outlet Argumenti y Facti reported that two residents of the Primorsky Krai region, home to the Primorye Gambling Zone, recently saw each of their $64,244-winning bets return minus 650,000 rubles ($8,352) in taxes.

Recently introduced rules require Russian gambling establishments to “independently report large winnings” to the Federal Tax Service.

This year, the service says it has “processed approximately 5,000 cases” at gambling zones across the country.

A spokesperson for the service said that tax payment notifications on casino wins are now “sent automatically.” They added that their calculations are “based on the data they receive from gambling operators.”

Casino Jackpot Winners: A Cash Cow for the Russian Treasury?

Gambling advocates have claimed that their industry is helping raise money for the Treasury. Earlier this month, the head of a Russian casino sector group claimed that the industry raised around $19 million worth of tax revenue in the first half of this year.

Footfall and revenues are up at the Primorye Gambling Zone’s casinos. The zone could soon welcome another casino, this time with Chinese funding, after a Jiangsu Province-based firm sealed a $194 million development deal in September.

The deal will see the Chinese investor work alongside the Primorye Development Corporation and the Primorsky Krai government.

Meanwhile, in St. Petersburg, the Russian media site Gazeta.ru reported that a man will stand trial for theft after “blowing all of his mother’s savings” at an online casino while she was asleep.

Prosecutors in the city told the Frunzensky District Court that the 20-year-old man took his mother’s phone while she was sleeping and stole 200,000 rubles from her bank accounts.

He then proceeded to use the money to play online casino games, “where he lost most of the stolen funds,” police told members of the press.

Ex-police Chief Jailed in Gambling Protection Racket Probe

In Siberia, the Russian media outlet Gorsite reported that the former deputy head of the Novosibirsk Department of Internal Affairs has been convicted of gambling-related fraud charges.

Prosecutors told the Novosibirsk Central District Court that the man (unnamed for legal reasons) “received 1,925,000 rubles [$24,807] in bribes from gambling industry businessmen.” He took the bribes from April 2022 to October 2023, prosecutors explained.

In return, the prosecution service said, the man provided “protection” to their underground gambling dens. His services included ensuring the dens were not subject to raids or surveillance.

The district court judge found him guilty on multiple charges and sentenced him to four years in prison. The court also issued him a 320,000 rubles [$4,124] fine.

It also recovered the money he had taken in bribes and transferred it to the Treasury.