Russian Casino Licensing Clarified

As reported by the Moscow Times: "The market players in Russia's booming gaming industry on Friday welcomed the government's move to bring more clarity to sector's regulation by appointing federal tax authorities in charge of issuing licenses but also warned about the risks of concentrating too many powers in the hands of the taxman.

"The Cabinet decided Thursday to place the authority to grant licenses to gambling establishments under the jurisdiction of the Federal Tax Service. The decision, which is to come into effect after the government publishes the formal regulation, will resolve the months-long deadlock over gambling licensing.

"…All gambling licensing has been stalled since January after the State Sports Committee was disbanded last year, and its successor, the Federal Agency for Physical Culture, Sports and Tourism, did not inherit the committee's powers to issue permits.

"…Other market players, however, warned that placing both licensing and tax oversight with the tax service would give the government body unlimited power.

"…Even though just the country's slots machines market is worth $3.5 billion, according to MDM Bank's estimates, Russia still does not have a federal law that regulates the gaming industry…"