Putin Signs Law Imposing Fines for Transfers to Illegal Casinos

The state online legal information portal has published a law introducing penalties for transactions made in favor of unlicensed gambling operators. The document was signed by President Vladimir Putin today, February 16, 2022.
Under the new law, legal entities—including banks, postal organizations, and mobile operators—will face fines ranging from 25% to 40% of the transaction amount for violations. The minimum penalty for a single payment cannot be less than 5 million rubles. Officials responsible for such transactions will be fined between 100,000 and 500,000 rubles.
Additional sanctions will be imposed for violating prohibitions on entering into legal agreements for transfers with illegal casinos, both land-based and online. Furthermore, if such a contract already exists between a bank or another payment organization, it must be terminated immediately. Failure to do so will also result in fines for the responsible officials, ranging from 100,000 to 500,000 rubles.
Will this lead to a reduction in the number of illegal casinos in the country?
The primary aim of the law is to enhance the effectiveness of the fight against illegal gambling operators. Previously, despite certain restrictions, payment operators allowed transactions in favor of casinos and betting shops that lacked state licenses. Now, these entities face increased accountability due to the potential risk of incurring substantial fines.
As early as the summer of 2021, the State Duma granted the Federal Tax Service (FTS) the authority to shut down websites of payment systems that actively transfer funds to illegal operators. It is important to note that the FTS can do this without a court order. An official list of unlicensed platforms with which financial transaction agreements cannot be made is available on the agency's website.
It is worth mentioning that the initiative from the Federal Tax Service to reform the gambling law has received support from industry representatives.