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The popularity of betting business increased substantially within the territory of CIS countries. The betting companies will always bring income to their founders due to demand on the gambling market and possibility of acquisition of customers of various categories. This is proved by the official studies of experts in the economic area and gradual legalization of gambling business in many countries. In all cases success is based upon the choice of reliable software, customer-oriented approach and consideration of lines distinguishing the bookmakers’ facilities from the other competitors.
High revenues and continuous flow of betters attract the tax services and competent authorities of the countries, resulting in the implementation of new draft legislations. According to the European practice, the deductions from the bookmakers’ facilities increase the federal budget substantially and enable to raise new investment opportunities into the sports sector of certain country.
The legislative innovations
Some CIS countries cooperate with the companies from gambling industry operating on the basis of the international or local regulatory license. The draft legislations on the gambling business underwent some amendments in the series of countries due to coronavirus pandemic and changes in the global economics.
The Bets Accounting Center was established in Kazakhstan in 2020 for the purpose of tracking of all money transfers of the gamblers making bets. The experts assure that the organization regulates the operation of the bookmakers’ facilities, tracking all revenues. This facilitates the reduction of the cases of gambling addiction due to fixation of certain limit for making bets by the better.
The amendments to the operation of the Bets Accounting Center will be introduced at the beginning of 2021. Moreover, it is planned to impose restrictions on the activity areas of the betting providers in the country. Soon the bookmaker’s facilities will offer the quotes only for sports events, without other topics. The Bets Accounting Center will monitor the correct operation of the organizations. This decision resulted in massive protests on the part of the entrepreneurs from Kazakhstan, and later this escalated into closing of all bookmakers’ facilities since January 4, 2021 provided that the Center operation won’t be arranged.
Opening of new betting companies also comes with single gambling license obtainment. The parliament of the republic approved the amendments to the law “On the licensing of certain types of activity”, as part of the increase in cost of execution of the official permit for the activity on April 22, 2020.
The betting providers, pawn shops, and the lotteries shall be separated from the general list of licensing. Currently it is necessary to pay duty for submission of application for review (about 57 dollars) in order to obtain a license for the bookmaker’s facility opening. The document obtained shall be valid for three years.
The State Duma of the Russian Federation approved the legislative proposal limiting the activity of the betting providers. In other words, the bookmaker’s facilities shall be entitled to accept bets only for sports events, and the betting terminals may accept bets only for horse races. Moreover, it is planned to join two regulating companies, and this new company will be obliged not only to document the licenses, but also to collect the tax payments.
The interests of deductions of the sports-betting firms will be increased after law entry-into-force. The founder will be obliged to pay some fraction of his revenue from all bets made instead of the usual taxes for sports bets, and events held in the Russian Federation and CIS countries.
The affairs in the field of betting business have been improving in Uzbekistan. The parliament approved the draft legislation on the betting legalization within the territory of republic in 2020. All existing betting providers shall come within the regulation of the Agency for the Market and Capital Development since January 2021. Money made from the income of the bookmaker’s facilities will be allocated to the improvement of sport sector and football in Uzbekistan.
The authorities of Azerbaijan started to keep strict watch over the operation of betting companies, and introduced new amendments to the applicable law on the gambling industry. The substantial fine shall be imposed on the founders for approval of betting for underage gamblers. Moreover, the license of the betting provider for further services rendering will be cancelled provided that the betting provider will commit the series of infringements according to law.
The physical betting companies discontinued their operation in November 2020 according to the reviewed law on the prohibition on the gambling activity in Armenia. Moreover, the National Assembly of Armenia for Economic Affairs plans to develop the special package limiting the functionality of the online bets websites.
Bookmaking in Belarus still flourishes under the regulation of the Ministry for Taxes and Levies. So, more than 100 new bookmaker’s facilities were opened as of July 2020. Moreover, the authorities do not impose many requirements to the founders applying for the review of license acquisition. The entrepreneurs develop the international brands within the territory of republic, organizing online platforms for the local betters.
There has been a prohibition on bookmaking in Kyrgyzstan for five years. However, there’s no problem for those who wants to make bets and stay up to date with the topical events in the world of sport. The most physical companies switched to online mode, and they offer their services on the basis of the international licenses of gambling commissions. It is not planned to review the legislative draft being applicable in the republic.
Betting is the favorite gambling entertainment for many gamblers. Sports betting and lotteries will be always popular with the gamblers due to variety of proposed results and availability for the users of any level.
Choice of reliable software provider is the most important thing for the betting provider. The most founders in CIS countries prefer the authorized representatives and international companies, the online organization of which warrants as follows:
- high-quality servicing and administration of physical points;
- delivery of gambling soft to online platforms;
- safety of betters using the software of the international companies.
Trust your business only to the proven providers!
This article was published due to Inbet company, the authorized representative within the territory of CIS countries. Provider of software solutions for physical betting stations and online business.