Russian official plots new crackdown against illicit online casinos

A Russian official has proposed new measures to protect young people against the proliferation of illicit online casinos. 

Yevgeny Masharov, a senior figure within the Civic Chamber of the Russian Federation’s public bills and regulations commission, made the remarks ahead of an expected crackdown on the illegal operators. 

He also spoke of crypto’s role in their rise, and the damage inflicted on the regulated gambling sector. 

As reported by Russian news agency TASS, Masharov detailed a dual approach to address these issues, including the introduction of blocks on certain gambling-related “websites and applications” and the prevention of “payments made using cryptocurrency.” 

The Commission official went on to state that most complaints received by the body relate to “online casinos and gambling apps” within the overall iGaming sector.

Many of those are filed by parents of young people concerned about what can be accessed on their children’s smartphones, including illicit online casinos.

“Gamification has become a trend, while the simplicity and convenience of gambling games attract new users. The legal gambling market is now losing out to illegal operators,” said Masharov. 

He also outlined the key issue that these illicit platforms do not have the same requirements for user identification or age verification, which is likely to be a driver to target their operations.

Roskomnadzor, the Russian internet censor, could be utilized to bring in app bans, with Masharov also suggesting that anti-money laundering agency Rosfinmonitoring and the Russian Central Bank could contribute to “help solve the crypto problem.”

Online control and regulation is a global issue, including in Russia, despite the firm grip held by President Vladimir Putin and his regime. 

The Kremlin attempted to block public access to the encrypted messenger app Telegram in 2018, but was forced into a U-turn within two years. 

The government has also targeted VPNs (Virtual Private Networks), used to access websites or portals prohibited by Roskomnadzor, but the web privacy tools can still be accessed and used to visit various sites, from illicit online casinos to overseas news platforms.

In Russia, crypto has no legal currency status, but its prominence is growing and has been used as part of international trade transactions. 

Domestically, its use is officially outlawed but not criminalized.

 Image credit: Ideogram

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