Russia imposes criminal liability for organizing a gambling business

Friday 12th of December 2014

Russia’s State Duma on Dec. 9th adopted a bill on all-out criminal responsibility for the organization of a gambling business.

Gambling in Russia has been banned everywhere except in the four designated gambling zones - in Russia's westernmost Kaliningrad region, in Krasnodar region in southern Russia, in Altay region in southern Siberia and the Far East's Primorskiy Krai. Recently, the government also approved two new zones in Sochi and the Crimea.

Despite the ban, law enforcement officers regularly bust illegal casinos. Moreover, closed casinos resume their operations in a very short period of time, said the head of the State-Duma Committee Against Corruption, Irina Yarovaya (from the United Russia).

As of now, a casino may be held criminally liable only if it brings 1.5 million roubles ($25,967) in revenues.

The bill imposes a fine of up to 500,000 roubles for organizing illegal casinos, including on the internet. Other possible penalties are up to 240 hours of compulsory work, up to four years of confinement or up to two years in prison. In addition, fines will be introduced for organizing and carrying out gambling activities in betting offices and totes, outside of the gambling zones, as well as for the game itself if the aim is to obtain large-scale income.

Among other things, the law stipulates administrative liability for legal entities, the same as it is now. The fine for them is set at up to 1 million roubles with confiscation of gambling equipment. There is also a fine for organizing and holding games of chance in a betting office and tote with gross violation of the conditions.

At the same time, the Russian Federal Anti-Monopoly Service (FAS), has asked Google to remove all gambling advertising targeting Russian consumers, or face administrative penalties for breaching Russian advertising standards after it found online gambling advertisements displayed on Google's search engine. Currently Google does not allow for online gambling advertising to be displayed on its Russian search engine.