written and last updated by
Sam Smith at
26 Aug 2021
Journalist, Editorial Department
Russian authorities are set to tighten oversight of compliance with legislation aimed at combating illegal online gambling. In light of this, industry experts predict an increase in the number of licenses revoked from financial institutions, including banks.
This trend is gaining momentum like never before. According to recent statistics, there were 28 instances of banks losing their licenses in the first six months of this year alone, marking an 87% increase compared to the same period in 2020.
Expert Yuri Belikov believes that by the end of the year, up to 30 financial institutions may follow suit. He attributes the primary cause of defaults in this sector to dubious transactions that directly or indirectly violate Russian law.
"Often, the process of revoking or canceling licenses occurs among non-banking organizations caught servicing accounts for banned online casinos, bookmakers, and other entities involved in illegal gambling. Most of these organizations lack Russian registration, which forces authorities to resort to stringent regulation," Belikov noted.
The Central Bank of Russia began its policy to prevent transactions benefiting illegal gambling companies operating within the country at the end of last year. This was prompted by the news that the payment service "YooMoney" was prohibited from processing transactions for online casinos and bookmakers. While the regulator did not explicitly cite specific legal violations at that time, it took significant enforcement measures.
However, this year, the Central Bank has started to explicitly identify the types of violations related to payments directed at illegal gambling platforms.
It is worth noting that the owner of the Tigre de Cristal casino has expressed optimism about the future of his business in Russia.
