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Highlight Events on the CIS Lottery Market in 2021

The gambling sector is rapidly developing — online lotteries, casinos, and slot sites are starting everywhere. If we consider the general trend in the development of the lottery market in the CIS countries, then we see the influence of the global crisis. The consequences of quarantine and coronavirus outbreak became the main reason for a noticeable decrease in lottery betting activities. What significant events happened this year, what awaits this industry in the future — questions that interest millions of people in Russia and the CIS countries.

Highlight Events on the CIS Lottery Market in 2021

Russia

The key news in the Russian gambling world is the financial goodie at the start of this year. All the citizens who have won cash prizes may not include these incomes in their annual tax returns. The gambling service provider is a tax agent who is obliged to monitor the correct taxation and the receipt of finances in the state treasury. Depending on the amount of remuneration, the taxation procedure will be various:

  • Bettors who won no more than 4 thousand rubles are exempted from paying state fees.
  • If the winnings are from 4,000 up to 15,000 RUB, this amount must be indicated in 3-NDFL and pay the amount of the fee.
  • Large sums above 15,000 RUB are not declared by the winner — the founder is obliged to withhold tax on his own.

The updated tax notification form became legal this year, but the design changes will be active only in 2022.

Tajikistan

In Tajikistan, the government is concerned about illegal online activities by bloggers who arrange online lotteries and giveaways on YouTube. According to the Ministry of Finance, it is necessary to introduce mandatory state licenses giving the right to conduct such entertainment activities on the Internet. Obtaining a certificate means not only the possibility of legally conducting online lotteries but also the obligatory payment of funds to the state treasury. Failure to comply with laws and unofficial entrepreneurial Internet activity threatens administrative responsibility.

Such attention to the work of bloggers is no coincidence. The statistics of recent months indicate that during this period the number of drawings increased. On average, one lottery ticket was sold for 100 to 200 somoni, or from 1 to 3 thousand rubles. The prizes were different — you could win smartphones, different appliances, cars. Online lottery organizers criticized the introduction of compulsory licensing. The participants in the give-aways of such kinds are mainly Russian citizens. Many of them are legal migrants from Tajikistan. The government explains that the coordinators must pay taxes, regardless of who participates in the betting activities. Questions also appear about the process of conducting any form of online lotteries. Bloggers deny the facts of fraud, in their words, Internet giveaways are held publicly. No recording is made, everyone can see the live streaming video on social media.

The Tax Committee of Tajikistan sent out a notification at the beginning of the year warning of the upcoming changes. For 01.01.2021, it was known about 29 active channels and their audience was about 19 million people. The government limited the deadline for registration to April 1. From this moment, any actions without appropriate documents are recognized as illegal.

Moldova

The gambling monopoly of Moldova obliged large banks to refuse to cooperate with casinos. Bookmakers are prohibited, and all transactions on their accounts are recognized as illegal. The authorities expressed their demands in an official letter sent to the banking offices of the OTP Group in Hungary and the Romanian branch of Banca Transilvania. The appeal emphasizes the need for strict adherence to the law in terms of combating illegal gamblers. Separately, thanks are expressed to the commercial organizations Moldindconbank and Moldova Agroindbank for blocking banking operations and assisting in the fight against unauthorized online casinos.

The monopoly obliges the beneficiaries to adhere to local laws to be equal to activities in European states. The key point is the blocking of outgoing and incoming transactions from unauthorized accounts. The license applies to casinos, gambling offices, online betting sites, since January 1, cooperating only with one provider — the National Lottery of Moldova. Financial transactions are carried out through NGM Company SRL — its personal partner. The lack of a document can lead the organizers to a fine of $2,000 to $8,000.

Belarus

The Ministry of Sports and Tourism of the Republic of Belarus has established a state online lottery. The goals of its creation are the development of physical education and sports, support of the Olympic and Paralympic directions — the incoming financial investments will be spent on these sectors.

To place a bet to participate in the game, you will need to fill out an ID form. Without this, it will be impossible to get your prize. Bets consist of two fields containing 15 numbers. In each field, you need to select 4 numbers. To accept bets, a non-cash payment system is used through the official website, for payments — electronic payment systems, cash, and any means not prohibited by law.

Kazakhstan

In the Republic of Kazakhstan, a new legal background about the running of gambling activities prescribes the transfer of betting establishments to special reservations. This does not guarantee the transition of their clients to the lottery sector — its specificity is different. Gaining the trust of the population is a top priority for the government. The transparent basis of the new program and control by state authorities is a guarantee of easy purchase of tickets and getting of winnings. It is an appropriate certificate for the program. All this increases the loyalty of the population and the belief in the possibility of becoming richer.

Betting companies in Kazakhstan are in crisis. Their main competitor is casinos, which are expecting an influx of customers after the official closure of the PPS. Online games do not guarantee live emotions that players come to real clubs for. Experts of the gambling world claim that it is impossible to replace them with online slot betting activities. But modern realities and Covid-19 are making their adjustments to the development of online destinations

Uzbekistan

The President of Uzbekistan signed a decree on the popularization of state lotteries to finance sports and physical culture. The accumulation of funds will be dealt with by a specially created off-budget fund, which will receive up to 10% of proceeds from lottery income.

After the collapse of the USSR, the number of bingo games in Uzbekistan decreased, and completely stopped in 2010. Nowadays, the legalization of state lotteries is considered a priority.

Ukraine

The expansion of the online lottery business in Ukraine is growing rapidly. The Antimonopoly Committee oversees the legalization of gambling. There is a legal background that allows state lotteries to operate. Created commission for regulation of the service providers’ work and online money games gives licenses — it is planned to open more than 30 new establishments in 17 cities/towns. Now only sports poker clubs operate legally. Bookmakers serve visitors semi-legally, acting under licenses from other operators and gambling analytical organizations (mostly foreign).

Since 2009, gambling companies have been reorganized into gaming platforms. The current situation shows that large firms remained in business, dividing the market among themselves. Regulation and control of their work are possible only by reforming the taxation system and adjusting the rules for obtaining a state license. The confident development of the online gambling business, in general, is a noticeable trend, this is due to legalization. The country authorities of the former USSR understand the seriousness of the situation and are taking the right measures to control the activities of illegal organizations.

This process is long and affects different areas of activity. Changes in legislation entail a whole range of additional measures, including the license issuance, development of changes in tax legislation, adjustment document forms for reporting, and much more. Only a phased and confident implementation of reforms will lead to the full legalization of the lottery business and help to make the correct work of all areas included in the system of Internet gambling.

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