Yevgeny Masharov, a senior Russian policymaker, has proposed measures to tackle illegal online casinos. The two measures proposed are to block access to several websites and applications as well as blocking payments in cryptoocurrencies.
Masharov said: “The problem of illegal gambling can be solved in two ways. The first is to block websites and applications. And the second is blocking payments made in cryptocurrency.”
The proposal suggests that Russian regulators, including Roskomnadzor (the internet censor) and the anti-money laundering agency Rosfinmonitoring, could enforce these measures.
Crypto casinos are especially popular with underage gamblers as Masharov referenced they, “do not have requirements for user identification or age verification policies.”
He said many parents have complained that operators are targeting their children through gamified apps and websites.
“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.”
Russian attempts to block access
Russia attempted to block access to Telegram in 2018, but citizens found ways to bypass the ban, and the government reversed its decision in 2020.
The government has also attempted to outlaw VPNs (Virtual Private Networks), which citizens often use to access websites blocked by Roskomnadzor. However, as noted in the case with Telegram, it is questionable how effective the regulations can be due to the prevalence of VPNs online.
VPN friendly casinos capitalize on the ability of users to find ways to get round local betting laws and firewalls.
Crypto in Russia
Last year Russia legalized crypto payments for international trade. Finance Minister Anton Siluanov said at the time, “As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions),
Reports last month suggested oil companies have been using crypto payments with China and India to bypass Western trade sanctions. Due to low energy costs in the country, particularly in Siberia, Russia has become a Bitcoin mining hub.
Due to this and the common access to tools such as VPNs, it may be difficult for Masharov to implement the plans to tackle online casinos.
Unlicensed platforms have been on the rise in the US as well. A study last week reported that illegal gambling generates more revenue than the legal sector.
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