Russia fights to limit unlicensed online gambling

Tuesday 27th of January 2015

Russian authorities are continuing to crackdown against unlicensed online gambling ahead of the launch of an online gaming framework due for the summer of 2015.

As part of steps to prevent fraud, authorities are looking to measures to block online payment.

Late last year was marked by the formation of a self-regulatory organization (SRO) with a goal of combating illegal gambling.

As part of the steps to control illegal gambling operators are now required to sign up with the SRO that will have as one of its other functions a payment processing system.

The National Association of Bookmakers in detailing how the system will be put in place said transactions of players' funds will need to be channeled through the system in order for the SRO and Russian authorities to monitor transactions.

This will enable authorities to monitor who is licensed and those operating without a permit. Transactions go through an online SRO portal.

Officials said once in place, the government will call on all payment systems in Russia to halt payment arrangements with companies not signed on to the SRO.

The steps come against backdrop of a general crackdown on illegal gambling. Amendments in Russia's Criminal Code has given the state more power to fight illegal gambling. Punishments include heavy fines, community service hours, and jail.

Russian iGaming has been hard hit since the Russian ruble crashed back in late 2014. The uncertainties led to the departure of major operator Ladbrokes from Russia in early January.