Russian Deputy Finance Minister Ivan Chebeskov has revealed that illegal online casinos are expanding rapidly, despite government efforts to curb their influence. According to TASS, the state-owned Russian news agency, Chebeskov told the Federation Council Committee that the ministry is struggling to stop the flow of money from Russian citizens into unregulated gambling platforms.

Illegal Casinos Outpacing Regulated Operators

Chebeskov stated that the amount of money spent on illegal online casinos could be higher than the funds passing through regulated bookmakers. He estimated that Russians spend 2 trillion rubles ($26.1 billion) annually on bets made through domestic bookmakers, but the unregulated sector is growing at a faster rate.

The Russian government has proposed legalizing online casinos, with the Finance Ministry estimating that this could generate billions of rubles in tax revenue each year. Officials are pushing for the Kremlin to approve a plan that would impose a 30% tax on online gambling operators.

Failed Crackdowns and Evolving Schemes

Chebeskov said that despite efforts by the Finance Ministry, the Central Bank, and the internet censorship agency Roskomnadzor to combat illegal platforms, these efforts have yielded little success. He attributed this to the constant emergence of new gambling websites and schemes that evade regulation.

“Due to the constant emergence of new online gambling schemes and websites, our crackdowns have failed,” Chebeskov said. The ministry is now focusing on public education campaigns to redirect citizens’ spending from gambling to traditional financial investments.

The Finance Ministry argues that legalizing online casinos would not only generate tax revenue but also allow the government to regulate the industry and protect citizens from the risks of unregulated gambling. However, the proposal has faced opposition from various quarters.

Opposition and Social Concerns

Some State Duma lawmakers have opposed the plan, citing concerns about the social impact of online gambling. Critics argue that legalizing online casinos would increase the risk of gambling addiction and contribute to a rise in gambling-related crime.

Recent incidents have highlighted the growing problem. In Sochi, one of Russia’s four designated gambling zones, police have arrested a man who stole 200,000 rubles (over $2,600) from his girlfriend to place bets on an online casino. Detectives said the stolen funds were her life savings.

The Russian Orthodox Church has also expressed strong opposition to the proposal, with church leaders warning that online gambling could have a detrimental effect on the moral fabric of Russian society.

Despite these concerns, the Finance Ministry remains determined to push for legalization. Officials believe that the current situation is unsustainable, with the illegal gambling sector continuing to grow at a pace that outstrips government control.

Chebeskov emphasized the need for new mechanisms to educate the public about the risks of gambling and the benefits of investing in traditional financial instruments. He called for public campaigns that would highlight the advantages of redirecting funds from bets to investment vehicles.

The debate over the legalization of online casinos is expected to continue in the coming months. With the Finance Ministry pushing for regulatory action and opposition from various stakeholders, the issue is likely to remain a focal point in Russian legislative discussions.