Recent statistics from Russia indicate that illegal online casinos and sportsbooks are increasingly losing ground to licensed operators. Data from the analytics platform Blask reveals that visitor numbers for illegal sites have dropped to their lowest levels since 2018, as the Kremlin considers legalizing online casinos.
In June, licensed bookmakers captured 60% of the market share, leaving illegal operators with just 40%. A Blask official noted, "Admittedly, 40% is still a huge gray area. However, the trend for the first half of the year is clear. Demand is shifting from dubious online casinos to license-holding operators. And it is doing so at a rapid pace."
This shift follows a recent law signed by President Vladimir Putin that mandates gambling firms to block individuals who register with a central self-exclusion database. Starting September 1, non-compliant companies may face fines of up to $6,400 per infraction.
The data from Blask highlights a significant decline in illegal betting, with receipts hitting a low not seen since 2018. Just months ago, in January, illegal operators held nearly half of the market, but recent enforcement actions have drastically reduced their presence. Illegal market volume peaked at $839 million in January 2024 but has since decreased by 69%.
According to analysts, the Central Bank's revocation of Qiwi Bank’s operating license on February 21, 2024, was a critical turning point for illegal online casinos. Blask stated that this decision effectively cut off a vital payment method for illegal operators. Five months later, legal sector revenues outstripped those of illegal platforms for the first time.
The illegal sector faced further challenges in February when the e-payment gateway FreeKassa ceased operations shortly after a media report associated it with various illegal casino websites.
While illegal operators saw a short-lived surge in August last year, generating about $442 million, the trend turned as the Central Bank rolled out a national database targeting fraudulent credit card users, diminishing revenues for illegal platforms.
Official figures align with those from Blask. Data from May by the Unified Regulator of Gambling showed that sports betting on licensed platforms grew by over 8% last year, reaching a volume of 1.9 trillion rubles ($24 billion). Industry experts credit government efforts to eliminate illegal Russian-language casino sites as a factor in this growth.
Authorities now have enhanced powers to block illegal platforms systematically. Alexey Botika, an expert in the Russian betting landscape, remarked that legal operators significantly benefited during the recent soccer World Cup, using the event to cement their existing customer base and attract new users. Bet frequency and size increased significantly during this period.
Despite this downturn, illegal online casinos are still present in Russia. Boris Gubkin, editor-in-chief of RB Business, pointed out that restricted social media platforms still host advertisements for illegal brands. Observations show illegal betting sites persistently marketing their services on banned platforms like X and YouTube, with many Russians circumventing restrictions via Virtual Private Network software.
An unnamed source from a major Russian bookmaker conveyed to Kommersant that the Ministry of Finance's initiative to legalize online casinos could significantly challenge the illegal market.
