Russian government plans to introduce betting rights
The Russian government has just issued a new legislation that would require the country’s licensed bookmakers to pay a fee to use the names of any sporting event.
Last month amendments have been proposed to the federal law on Physical Culture and Sports in the Russian Federation. Among these amendments it is stated that bookies will have to negotiate deals with sporting event organizers to get the rights over a certain event. They would then be allowed to use the event’s name, logo and all other distinguishing marks.
If a bookie would try to use these marks without first striking a deal with the organizers, this amendment would allow the government to set the rates and also collect and distribute those fees. All of the money that would be raised in this way would help the construction of youth sports facilities as well as help the funding of those sporting events.
A few Russian bookies are already calling this proposed amendment a tax grab and expressed their doubt that the sporting event organizers would actually benefit from all of this. They also noted that these changes did not list penalties for failing to negotiate the necessary rights nor did they offer a valid mechanism that could monitor compliance. This all comes in a time when Russia is already struggling to overhaul their sports betting industry, with efforts to officially license online bookmakers and tax sports bettors’ winnings.