Tax on Casino Winnings in Russia: Legislative Nuances and Pitfalls

Under the current legislation in Russia, the tax on casino winnings is considered as an individual’s income. Accordingly, the norms of the Tax Code of the Russian Federation regulating the accounting, reporting, and withholding of mandatory payments are applied. The main regulator in this area is the Federal Tax Service (FTS), which controls not only the online segment but also offline establishments within gambling zones.

The obligation to pay taxes applies to any winnings, including amounts received from participating in automated draws, slots, bets, roulette, poker, as well as in bonus promotions. The source of income—online casino or land-based establishment—does not have a decisive significance: when the established threshold is exceeded, the income must be declared.

How is the tax on casino winnings calculated in Russia?

Until January 1, 2025, the tax rate was a fixed 13% for Russian residents. However, starting from the new year, a progressive scale was introduced, where the rate depends on the total annual income. It should be noted that in Russia, the tax on casino winnings is levied on the full amount, without taking into account the losses. Deductions are not provided, even if the winnings are accompanied by significant losses. The new scale includes the following levels:

• 13% — up to 2.4 million rubles;
• 15% — from 2.4 million to 5 million;
• 18% — from 5 million to 20 million;
• 20% — from 20 million to 50 million;
• 22% — over 50 million rubles.

Failure to fulfill the tax payment obligation results in fines and attention from the FTS, while correct declaration allows maintaining financial transparency and avoiding regulator claims!

Online platforms and taxation procedure

When dealing with online casinos in Russia, regardless of the operator’s jurisdiction, the tax on casino winnings must be paid in the general procedure. The absence of platform registration in the Russian territory does not exempt the participant from fiscal responsibility. Moreover, information about large payouts can be directly transmitted to the FTS by banks through which transfers pass. This applies to winnings in both foreign currency and rubles.

Special attention is paid to monitoring the movement of funds through bank accounts. From the moment the winnings are received, even if they are designated as a refund or bonus, it is considered the beginning of forming the tax base. Regular operations pose a risk of being included in monitoring by regulators.

Who and how pays the tax on casino winnings?

The main difference lies between residents and non-residents. If a citizen resides in Russia for more than 183 days during the year, they are considered a tax resident. In this case, the progressive scale is applied. In the opposite situation, the rate is 30%, without the possibility of applying benefits. Let’s consider the key steps that need to be taken to comply with the legislation:

• gather documents confirming the income received;
• calculate the tax amount based on the rate and total annual income;
• fill out the declaration in the form of 3-NDFL;
• submit the documents to the tax inspection by April 30 of the following year;
• make the payment by July 15.

Thus, compliance with the requirements related to how the tax on casino winnings is paid in Russia implies a clear sequence of actions. Following these steps ensures the legality of income, reduces the risk of fines, and builds trust with state authorities.

Do you need to pay tax on casino winnings: in which cases is the amount subject to taxation?

Not all amounts received from participating in gambling activities are subject to taxation. However, in Russia, a tax on casino winnings is applicable if the amount exceeds 4000 rubles per year. Even a one-time win with minimal profit can be included in the tax base if the aggregate income reaches the limit. Exceptions include draws without cash prizes and promotional activities presented as free gifts.

It should be noted: not every casino may automatically withhold taxes on gambling winnings. In such cases, the obligation to pay taxes falls on the recipient.

Specifics for online players

In practice, most platforms do not act as tax agents. This means that when receiving winnings in the online environment, the participant bears full responsibility for declaring the amount. The FTS has the right to request banking information or data from a foreign operator if there are suspicions of violations.

Often, the tax on casino winnings in Russia becomes a cause of disputes when a user receives money to their card and then does not account for it in tax reporting. Such actions are equated to concealing income and can lead to administrative sanctions or fines.

Common mistakes in tax payment

Understanding the taxation mechanisms helps avoid common violations. Below are common mistakes made by both beginners and experienced players:

• failure to account for winnings received through foreign platforms;
• untimely submission of the declaration;
• incorrect calculation of the total income amount;
• ignoring residency status;
• transferring funds through unofficial channels.

It is important to remember: the tax on casino winnings in Russia does not depend on the form of income receipt—electronic wallets, cards, and cryptocurrency transfers are also taken into account!

Responsibility for non-payment of tax

Failure to meet the established deadlines or complete disregard of the FTS requirements results in a fine. It ranges from 5% to 20% of the amount owed, and in certain cases, an additional fee may be imposed. In case of repeated violations, the FTS has the right to initiate a funds movement check and suspend operations on bank accounts.

Control is intensified if the tax on casino winnings in Russia must be paid in a significant amount. Operations over 600,000 rubles automatically enter the Rosfinmonitoring control base.

Conclusion

Analyzing the current practice in Russia, it can be stated that the tax on casino winnings requires increased attention from all participants. It is necessary to consider that legislation is constantly updated, and control over fund movements is strengthened.

The use of a progressive scale, the need to submit a declaration, and the responsibility for concealing income make participation in gambling formats not only financially but also legally sensitive.