Law to block payment websites signed, restricting illegal casinos

Law to block payment websites signed, restricting illegal casinos

Law to block payment websites

Russian President Vladimir Putin has signed a law to block without trial sites that cooperate with casinos operating without a licence. The new regulations restrict the activities of illegal gambling organisers casino software providers.

The FTS (Federal Tax Service) has been given the authority to decide to put a site on the list of banned sites as part of a crackdown on illegal organisation, as well as online lotteries and gambling. The blocking procedure does not involve obtaining a court decision. Previously, the restrictions applied only to the organizers themselves, but their effectiveness, according to the authors of the law (Chairman of the State Duma Committee on Information Policy Alexander Khinstein and Head of the Committee on Economic Policy Sergey Zhigarev), is minimal.

The law establishes a list of persons for whose benefit transfers are prohibited. Restrictions are introduced for payment agents, cellular operators and postal service providers to carry out financial transactions with business organisers which are on the list of illegal entities.

The law also prohibits entering into contracts with such persons or entities. The Federal Tax Service has given 60 days to terminate agreements already signed. Information on cases of money transactions involving online casinos or lottery organisers which operate outside the law is passed on to the Central Bank.

The official website of the Federal Tax Service will provide information on all slots online casino which provide money transfer services. A separate list will include foreign vendors and banks involved in financial transactions for the benefit of banned websites. In 10 days after the official publication of the law, it will come into force.

It should be reminded that earlier the State Duma of the Russian Federation considered a draft law which provided for administrative fines of up to 500 thousand rubles for officials and not less than 5 million for legal entities for transfers in favour of the organizers of illegal gambling business.