Gambling in post-Soviet countries is a hot and controversial topic. Despite the high demand for gambling among local residents, there is still mistrust to the industry, leading to restrictions and bans. Constantly changing laws also create confusion. However, building a successful and profitable iGaming business in Eastern Europe is possible, and the key is having up-to-date information.
In this article we will consider the main markets in the region and figure out where iGaming is legal, where you can get a license for an online casino or sportsbook, and where it is possible to work with an offshore license.
Belarus
For a long time, Belarus has been one of the most attractive places for gamblers from neighboring jurisdictions where gaming is prohibited. However, the recent years (COVID-19 pandemic, political unrest, economic crisis) have led the industry into decline. Many gambling establishments have closed, and taxes for operators continue to rise.
Until this year, gambling in Belarus was regulated by presidential decrees. Now the country has gambling legislation that includes regulations on the licensing procedure. It is still difficult to make forecasts regarding the impact of these changes on the industry, nonetheless, it should be noted that licensing requirements in the jurisdiction remain very strict.
Russia
The history of the gambling industry in Russia is jumbled and full of twists and turns. Thus, at the beginning of the century, gambling in the jurisdiction was not limited in any way. At that time, slot machines were placed even in grocery stores, and other types of gambling were also actively developing and blooming. However, the lack of regulation and control has led to undermined reputation of the sector and negative public attitudes.
It is worth noting that there was an attempt to regulate gambling in the late 90s. Then the state became a co-owner of all gambling establishments, a certain share of income served public needs in the country. The experiment quickly showed its inconsistency, because the operators simply stopped making money from their business. Since then, no attempts have been made to officially legalize gambling. On the contrary, the country’s government actively tightened the screws, which led to a complete ban on most forms of gambling in 2009.
Since the introduction of the ban, several land-based gambling zones have been opened in Russia. In fact, these are the only places in the jurisdiction where you can play legally. We are talking about “Krasnaya Polyana” in the Krasnodar region, “Siberian Coin” in Altai, “Yantarnaya” in the Kaliningrad Region, and “Primorye” in the Far East. Each zone has its own clients, however, the projects are not as successful as the government expected. Many Russians do not want to travel so far for entertainment and prefer to play in neighboring countries or in “black” casinos.
What about online gambling? Online casinos are illegal in Russia, but sports betting is in the white zone. Sportsbook operators can obtain licenses for their activities and operate freely in the country.
In 2020, a new gambling bill was approved. The document prescribes the establishment of a gambling regulator and a payment center, the introduction of a monitoring system, as well as a new scheme of mandatory contributions to national sports federations. In this way, the government is trying to support Russian sports through betting, as well as motivate its citizens to play responsibly on “white” platforms.
Ukraine
Since 2020, all types of gambling are legal in Ukraine. The legalization of the industry after more than 10 years of strict ban was a highlight that attracted investors and operators. Both offline and online casinos, as well as sportsbooks and poker rooms are regulated in Ukraine.
The licensing procedure in Ukraine is still blurry and unfinished; and a new draft law is being prepared. However, licenses are already being issued. The cost and conditions for obtaining a document depend on the type of gambling activity, and in the case of offline establishments, also on the region of the jurisdiction.
Unfortunately, the war in Ukraine forced local authorities to cancel the preferential tax rate for the gambling sector. This, coupled with several mandatory fees and the high cost of a local license (up to €8,000,000 for an offline casino and around €920,000 for an online one) could undermine the potential of the Ukrainian market and alienate operators. However, today the jurisdiction still demonstrates opportunities for the growth of the gambling sector and raising capital. LicensingAid keeps its finger on the pulse and monitors the gambling situation in Ukraine.
The Baltics
Gambling is legal and regulated in all three Baltic countries. The gaming laws of Latvia, Estonia, and Lithuania are time-tested and work well. Moreover, local authorities actively monitor the industry, making timely changes to existing rules.
It is worth noting that there is a strict ban on advertising of casinos and sportsbooks in Latvia. Lithuania and Estonia are more flexible and allow some types of marketing campaigns.
Unfortunately, the events of recent years, and especially the pandemic, affected the economies of the Baltic countries and their gambling markets. Thus, the fall in industry revenues in Estonia forced local authorities to close several healthcare projects that were financed from these funds. The Latvian market suffered even more: during the pandemic, the country’s government banned iGaming. Later, this measure was recognized as unconstitutional and useless, however by that moment the gambling sector lost 45.5% of revenue compared to the previous year. Lithuania handled the difficult situation better — offline gambling was temporarily inactive but the iGaming has developed well.
The Baltic countries require that only licensed gambling websites operate on their territory. At the same time, Estonia only recognizes its own licenses, while Latvia and Lithuania allow operators with permits from other jurisdictions to enter their market.
Despite temporary difficulties, there are reasons to believe that the gambling industry will continue to actively develop and prosper in the Baltics. This means that future operators should take a closer look at these countries from Eastern Europe.
Conclusion
The Eastern European gambling markets are an undoubtedly interesting direction. Nonetheless, those wishing to enter local markets should take into account the constantly changing political and economic situation, and therefore regular changes in legislation. Remember: whoever owns the information owns the world. LicensingAid has its finger on the pulse and has the latest information on the topic.
You can contact us with any question about legalizing the iGaming project in Eastern Europe or another region. In addition, we provide services for opening bank and merchant accounts, AML compliance, choosing a design and registering a trademark. Leave a request and start your journey into the new world of gambling today.
