Gambling business in Belarus: the end of the golden age?

Gambling has existed in Belarus for many years, but it really developed after 2009, when Russia adopted a law banning gambling in the country, except for specially designated areas. Belarus took the chance and opened its market for Russians. Now the gambling business in Belarus is experiencing severe competition and strict regulation by the state.

General state of the industry

The current legislation of the Republic of Belarus has designated the body controlling the gambling business as the Ministry of Taxes and Levies. In addition, other control and monitoring tools have been created, and a Special Computerized Cash Register System (SCRS) has been introduced to which all gambling establishments are obliged to connect.

The state allows these types of gambling:

• bookmakers;
• sweepstakes;
• arcades;
• casino (card games, dice, roulette);
• national lotteries.

The gambling business in Belarus is regulated by a number of presidential decrees and resolutions, which are periodically amended. One of the latest ones was the initiative to counteract gamblers' addiction. According to the legislative act, relatives of a problem gambler can apply to the court with a request to isolate him from gambling establishments for a period from six months to three years.

Currently, the gambling market in Belarus is represented by about a hundred companies. Statistical data for 2010 indicated that there were 29 casinos and 330 halls of slot machines in the country, with a total of 9.5 thousand slots and other machines.

Over the last few years, the number of gambling establishments in the country has been gradually decreasing. There are about 165 gambling halls, 24 casinos with about 6.4 thousand slots. The main mass of visitors of gambling establishments are local residents. According to various estimates, Belarusian players account for 50 to 70% of the total number of customers, the rest are Russian citizens.

Challenges of licensing

Starting a gambling business in Belarus is easy and difficult at the same time. The bureaucratic machine has invented a lot of obstacles for those who want to engage in gambling business. To obtain a license from the state and start official work, it is necessary to collect a package of documents, pay the established fee and meet certain requirements.

According to the norms of the RB regulator, gambling business may be conducted:

• only legal entities registered in the territory of the country;
• the head of the company must have his or her position as the main place of work and have at least three years of managerial experience.

Legislation sets out requirements for the premises in which it is planned to carry on business. It must comply with technical standards, be owned by the company or other property rights, and obtain permits from the Ministry of Internal Affairs and other authorities.

Gambling equipment must also comply with the requirements, obtain the necessary certification and be registered with the Ministry of Taxation. In the application for a license, the company must specify all activities that it plans to engage in. Often the casino is located not only tables and slots, but also cashiers for the acceptance of sports betting, etc.

After all the necessary documentation, including the receipt of the license fee, is submitted with the application, the regulator reviews the application and issues a positive or negative verdict.

The license fee established for gambling business in Belarus has a fixed amount of five hundred basic units. The amount of the base unit is determined during the approval of the state budget for the next year. In 2017, the license fee amounted to approximately $6.2 thousand.

Tools to influence operators

A license can easily be revoked for violating the requirements of Belarusian legislation. The violator is given a six-month period to correct errors, after which the license is suspended for another six months. Later, the license is revoked if the violations have not been corrected. The permit can also be taken away by the court.

Violations are punishable by fines of up to two hundred basic units. Companies that offer prohibited games, use unregistered machines, and provide access to services not connected to the SCCS are penalized.

For minor violations (lack of a copy of the certificate of registration, poor maintenance of equipment, admission of minors in the casino, non-payment of winnings, etc.) threaten financial penalties of up to fifty basic units.

In addition, the legislation provides for criminal liability for illegal entrepreneurial activity in the gambling business in Belarus. Violators face criminal sentences and large fines for illegal casino income exceeding 1 thousand basic units.

What taxes a business pays

Companies engaged in gambling activities are obliged to remit payments from each gambling facility: gaming tables, slots and other. The tax rates are fixed for each specific facility and range from 6.5 million rubles to 63.4 million rubles. Each facility must be registered with the Ministry of Taxation.

In addition to mandatory payments, taxation of positive difference between accepted bets and paid winnings or cashback amounts is provided for equipment. Under the new requirements, operators must pay 4% on each prize or cashback paid to a player.

The regulator is currently considering reducing the tax rate for gambling businesses to 50% if the business entity engaged in it operates for up to 15 calendar days in a tax period.

Procedure for receiving winnings

The procedure of cash prize payment is described in the legislation. The operator is obliged to create a special document in SKKS in two copies, to sign it, one copy to give to the player together with the winnings, the second copy to keep and store for a year, and in case of fiscal requirements - to present.

Conclusion

The gambling business in Belarus noticeably replenishes the state treasury, which is extremely important in the conditions of the financial crisis. However, at present, the companies that operate in this sphere exist under extremely strict conditions of regulatory policy. Harsh requirements and high tax rates lead to the fact that small companies cannot compete with the giants and either close down or go into the shadows. Analysts also note that Belarusian gambling establishments are reacting with losses to the outflow of Russians, which occurred in part due to the opening of casinos in Sochi. The new gambling zone in the south of Russia can offer its guests high-quality infrastructure and world-class service, which Belarusian gambling establishments can hardly boast of.

All this puts the gambling business in Belarus under the threat of extinction. It seems that it is time for both local operators and the authorities to radically change their approach to the industry while it remains afloat.

Source : https://logincasino.com/blog/igornii-biznes-v-belarusi15741.html