Putin Advisor Urges Legalization of Online Casinos as Russia Seeks New Revenue Sources

A senior advisor to Russian President Vladimir Putin has reportedly urged the Kremlin to consider legalizing online casino gambling as a way to generate much-needed state revenue. According to Kommersant, a leading Russian newspaper covering politics and business, Finance Minister Anton Siluanov has proposed that Putin authorize iGaming as part of broader efforts to strengthen government finances.

The recommendation comes as Russia’s economy faces mounting strain from prolonged wartime expenditures. While the Kremlin is not facing an immediate fiscal crisis, Putin has already moved to raise taxes on both businesses and individuals in response to falling oil revenues, persistent inflation, and the continuing costs associated with the war. These pressures have pushed the government to explore additional avenues for funding.

Siluanov, who has served as Russia’s finance minister since 2011, was appointed by Putin after the president removed Dmitry Medvedev from the role for criticizing further increases in defense spending. In his latest proposal, Siluanov reportedly suggested that expanding gambling laws to include online casinos could provide a significant new source of income for the state.

Under current law, Russia restricts casino gambling to four designated zones, although only one—Primorsky Krai, located north of Vladivostok—currently has operating casinos. Russians are also permitted to place sports bets online and participate in state-run lotteries. Siluanov’s office estimates that legalizing online casinos offering slot machines and table games could generate approximately 100 billion rubles (US$1.31 billion) in annual revenue for the government. He reportedly assured Putin that a strict and responsible regulatory framework would accompany any legalization.

Proposed regulations would include setting the minimum gambling age at 21 and requiring operators to comply with responsible gaming measures enforced by the Russian Unified Gambling Regulator. The push for regulation is also aimed at addressing the scale of illegal online gambling in the country. Estimates suggest the black market for online casinos in Russia is worth around three trillion rubles, with more than 100 illegal platforms currently targeting Russian players. Siluanov is said to have argued that a legal, regulated market could significantly reduce this illicit activity.

If Putin approves the move to bring online casinos under state oversight, Siluanov has recommended that the government impose a 30% levy on gross gaming revenue, providing a steady income stream for the federal budget.

The proposal comes amid a broader effort by Putin to bolster state finances. The president has ordered an increase in the value-added tax from 20% to 22%, effective January 1, 2026. The higher VAT will apply to most goods and services and will also eliminate previous tax breaks for small businesses, although the reduced 10% VAT rate on food, medicine, and children’s goods will remain in place. At 22%, Russia’s VAT is among the highest globally, surpassed only by countries such as Hungary, Croatia, Denmark, Sweden, Norway, Finland, Iceland, Greece, and several others in Europe.

Since launching its full-scale invasion of Ukraine in February 2022, Russia is estimated to have spent more than $300 billion on the war. The Center for Strategic and International Studies in Washington, DC, estimates that nearly 1.2 million Russian troops and around 600,000 Ukrainian troops have been killed, wounded, or gone missing since the conflict began.

On the international stage, US President Donald Trump continues to position himself as a potential mediator in the conflict. This week, reports emerged that Trump had hung a photograph of himself with Putin in a vestibule of the White House connecting the West Wing to the presidential residence, underscoring his ongoing interest in maintaining a visible personal link with the Russian leader.

By fLEXI tEAM