The gambling and sports betting business in Eastern Europe and the CIS in 2026

Gambling markets in Eastern Europe and the CIS have the potential for both success and frustration; while one market eases regulations, another introduces restrictions or tax hikes. Keep reading for a rundown of which markets to keep an eye on in 2026.

Eastern Europe is full of great risks. Regulations change, laws are passed and repealed, and as one country lifts restrictions, another introduces them. But plenty of operators have found success in the region, and it will continue to offer savvy gambling providers opportunities to grow and prosper.

In this article, we’ll look at the current state of the online gambling markets of Russia, Belarus, Ukraine, and Moldova.

Online gambling in Russia

The history of the Russian online gambling market is full of twists. At the beginning of the 2000s, gambling was completely unrestricted. Slot machines could be found not just in gambling halls and casinos, but in public spaces and convenience stores. The industry’s unfettered operation at the time gave it a poor reputation in the eyes of the public.

Early attempts at regulation were not successful, and by 2009, most games of chance were simply outlawed. Land-based casinos were permitted only in specially designated gambling zones: Azov-city in Krasnodar Krai, Altai, Kaliningrad, and the Far East.

While demand was huge, gamblers were not interested in traveling to out-of-the-way regions. The zones were remote and had little to no tourism infrastructure, so for a vast majority of players, it was simpler to travel to a neighboring country or content themselves with the less-glamorous offerings of black market casinos.

Ultimately, most of the designated zones underperformed. Azov-city, the first gambling zone to open, was liquidated in 2018, costing investors RUB 3.3 billion. Neither Altai nor Kaliningrad has ever shown spectacular results. The Primorsky zone, located in the Far East and owned by a Taiwanese company, prospered by attracting tourists from South Korea and China instead of focusing on local gamblers.

A new zone (to replace Azov-city) was opened near Sochi to take advantage of the infrastructure that was created for the 2014 Sochi Winter Olympics. However, the zones proved to be frustrating for investors and less lucrative than the government anticipated.

While the casino gaming sector was completely overhauled, sports betting was largely untouched. Bookmakers and operators of parimutuel betting could be licensed and work legally in the country, even outside of the gambling zones.

However, when the 2020 crisis hit the Russian sports industry, new regulations aimed to support it by utilizing the betting industry.

Bill № 1055657-7, “On the Unified Gambling Regulator,” was introduced in November, swiftly passed into law in December, and signed by the president on December 30th.

The new legislation aimed to introduce a single regulator for the gambling industry, unified systems for payment, and online monitoring, as well as a new way to calculate compulsory contributions that betting companies pay to sports organizations.

Operators must be licensed by the Federal Tax Service (FNS) and connected to the Unified Gambling Regulator (ERAI) and the Central Accounting of Internet Bets System (CUPIS). Payment processor Mobilnaya Karta was selected to act as the Unified Interactive Bets Accounting Centre (ETSUP) in 2021, according to an executive order from President Putin.

Of course, the law received its fair share of criticism for being full of terms and measures that were not particularly well-defined. But at the same time, it marked a novel direction for Russian legislation because — to an extent — it was inspired by Western regulations and aimed to centralize and streamline the industry.

This trend was also supported by Decree No 706, which came into force in January 2021. This measure removed numerous outdated restrictions and requirements, making the Russian gambling landscape a little easier for operators to navigate.

The Ministry of Finance estimates the legal online gambling market generated around RUB 1.7 trillion (€16.4 billion) in turnover in 2024, up from regulator ERAI’s reports of RUB 978 billion in 2022 and RUB 1.22 trillion in 2023 (RUB 1.16 trillion of which reportedly came from online betting).

And growth in turnover is coming hand in hand with growth in the betting sector’s contributions to the state: RUB 10 billion in 2021, RUB 13.8 billion in 2022, RUB 19.1 billion in 2023, RUB 33 billion in 2024.

Betting brands such as the country’s largest sports betting operator, Fonbet (RUB 610 billion in revenue in 2024), are built on a solid base; the ERAI has recorded roughly 6 million total bettors in the country, including about 2 million monthly active bettors.

And the industry would be even bigger if so much revenue wasn’t being siphoned off by offshore platforms.

The black market in Russia is estimated to generate turnover of around RUB 3 trillion (€32.7 billion) each year, as reported by the Moscow Times*, *with authorities estimating that players in Russia can choose from about 100 unlicensed platforms that manage to circumvent the government’s blocking efforts.

The restrictive environment may change in the not-so-far future; according to local news outlet Kommersant*, *Finance Minister Anton Siluanov submitted a proposal that online gambling be legalized and run through a single, state operator. The operator would divert 30% of its revenues to the state, bringing in an estimated RUB 100 billion (€1.09 billion).

This wouldn’t be the first step towards a more modern system; on 1 January 2026, the country’s new self-exclusion program came into effect. Russian players can now voluntarily exclude themselves from gambling activities for a minimum of twelve months. All licensed operators are required to participate in the system.

Online gambling in Belarus

For a while, the gambling market of Belarus prospered by catering to players from neighboring countries where gambling was illegal, like Russia. However, in recent years, growth has subsided.

2020 was a rocky year for the country. After the crisis started, both the land-based and online sectors suffered, even though the Belarusian government didn’t impose strict lockdowns. Protests that erupted in August were also extremely detrimental; the economy suffered, mobile internet connections were disrupted, and the public was too preoccupied to focus on entertainment.

In the past, gambling was regulated by presidential decrees. In 2023, however, gambling regulations were codified into law, creating a general licensing framework. The potential implications of these changes remain uncertain, as licensing conditions are stringent in both the old and new systems.

One thing that online casino operators in Belarus seem able to rely on is tax hikes. GGR tax was 4% in 2022, then doubled to 8% in 2023; by 2025, operators were paying 10%, and as of 1 January 2026, they’re on the hook for a 12% GGR tax.

That alone doesn’t sound like much — some governments impose GGR taxes as high as 18% — but operators in Belarus are also liable for corporate income tax of 18% on net profits, as well as other financial obligations, such as the requirement to hold 90,000 base units in reserve (as of 1 January 2026, a single base unit is 45 Belarussian rubles).

Players pay a withholding tax on winnings. In the past, the withholding tax was 4%; from 2026, the tax was raised to 5%, which is expected to raise an estimated BYR 35.7 million.

President Lukashenko called for more restrictive regulations in April of 2025, including legislation to block payments to foreign operators, ban gambling with credit cards, and allow family members to have compulsive gamblers excluded.

His call was answered. Banks and financial institutions are prohibited from processing payments to foreign gambling operators, and the industry now faces tighter restrictions on account verification, KYC and anti-fraud safeguards. Furthermore, players are only allowed one account each.

Decree No. 226, from 6 June 2025, introduced a requirement that players register with online gambling platforms through an in-person visit to a land-based casino or through an online video chat. The decree also prohibits players from having multiple accounts and blocks banks from conducting transfers from individuals to foreign gambling platforms. Also, only officially registered crypto platform operators based in Belarus’ special economic zone may conduct transactions in cryptocurrencies.

Some gambling regulations in Belarus are comparatively restrictive, such as the requirement that players verify their identity through video chat; friction during onboarding has a famously poor effect on conversion rate. But still, big brand names like Wazdan, Spinomenal, Parimatch, CT Interactive, and Brazino 777 all find the Belarussian market to be worth it.

Online gambling in Ukraine

In 2009, all forms of gambling in Ukraine were banned, but gambling was legalized again in the summer of 2020, kindling considerable interest among local and foreign investors. KRAIL, the Commission for the Regulation of Gambling and Lotteries, was formed to issue licenses and set regulations.

The new legislation allowed for online and land-based casinos, betting shops, gaming halls, and poker rooms. Licensing requirements and fees are different for each type of business; in the case of land-based gambling establishments, for example, they depend on geographical location.

Initially, there was a 10% tax on GGR for all verticals, with an additional corporate income tax of 18%. Player winnings were taxed at 18%, plus an additional 1.5% military levy.

In 2022, during the early stages of the war, authorities changed the law to allow certain business sectors, including gambling, to enjoy a reduced 2% tax rate on their profits. As a result, almost all gambling operators quickly adopted this simpler tax system. However, in 2023, authorities axed the perk, as tax contributions to the budget fell short of expectations.

The new regulations found themselves under critical fire. The variety of fees and taxes that operators are responsible for, as well as some of the highest licensing costs in Europe, could make operations in Ukraine financially untenable, jeopardizing the benefits of legalization. In iGaming, there’s always a risk that stringent regulations and licensing conditions can drive operators into the unregulated market, taking players (and tax revenues) with them.

The industry’s growth was stymied by problems with KRAIL. The regulatory body comprised a chairman and six other members, five of whom needed to be present for a meeting — such as one to consider a license application — to consider the meeting valid. However, as multiple members of the commission had been mobilized into military service, it became impossible for KRAIL to assemble or carry out its duties as regulator. Licenses weren’t being issued, leaving legitimate operators unable to start their business.

In May 2023, citing the regulator’s consistent inability to issue licenses in a timely manner, Deputy Prime Minister Mykhailo Fedorov submitted a draft law that would dissolve KRAIL and replace it with a new regulator.

In December 2024, the Verkhovna Rada passed Law No. 4116-IX, which abolished KRAIL. In its place is the State Agency “Playcity,” operating under the Ministry of Digital Transformation. PlayCity’s agenda includes digitizing licensing, establishing a national online monitoring system, eliminating the illegal market, restarting lotteries, re-establishing the problem gambling registry, and enabling users to self-exclude through the Diia app.

In September 2025, the Cabinet of Ministers approved new licensing rules that officially allowed PlayCity to issue licenses. Conditions include a faultless reputation, a clear absence of ties to Russia, and a requirement to adhere to responsible gaming measures. PlayCity expects to generate UAH 50 million ($1.21 million) annually through the new licensing scheme.

According to reports from the official tax committee, tax revenues from gambling have skyrocketed in the years since legalization:

Despite the challenging circumstances the country is facing, the gambling industry in Ukraine still shows potential for growth and success, especially if PlayCity can establish the right conditions for legitimate operators to be competitive.

Online gambling in Moldova

Moldova’s gambling industry is regulated and has undergone significant changes in recent years to tighten control and increase state oversight.

The gambling sector in Moldova is regulated under the Law on the Organization and Conduct of Gambling, which has been updated multiple times, most notably in 2016. The Public Property Agency, under the Ministry of Economy and Infrastructure, is the main authority responsible for overseeing gambling activities.

The regulatory landscape shifted significantly with the government taking a more centralized approach to control the industry. The government of Moldova has imposed strict licensing requirements, giving the state significant control over the gambling industry.

The primary law covering gambling in Moldova is Law no. 291/16, from December 2016, on the Organization and Conduct of Gambling Games.

Since 2017, the law has designated a state monopoly for certain gambling activities. The law regulates several gambling activities, including casinos, lotteries, gaming rooms with machines, sports betting, and online gambling through electronic communication networks, all managed by the National Lottery of Moldova. Due to the monopoly-like control, private operators face limited opportunities.

All forms of gambling advertising — TV, radio, online, outdoor, and promotional materials — were banned starting on 1 January 2022; the ban was partially lifted in late 2024, with lotteries and sports betting allowed to display broadcast and audiovisual ads between 22:00 and 07:00, with warnings required and a size limit (an A4 sheet of paper).

Moldova’s regulatory model stops just short of state monopoly; private licensing is available for land-based casinos, slot halls, betting shops, and bingo. For these businesses, there is a foreign ownership cap of 49%. All other forms of gambling are organized only by the National Lottery of Moldova.

According to official numbers, the NLM paid MDL 52 million (€2.6 million) in dividends to the state in 2021, indicating the company’s net profit for the year was MDL 105.5 million. Numbers have risen since then; in just the first three quarters of 2023, the National Lottery contributed MDL 230 million to the state budget, a massive increase in just two years.

However, whether it’s due to strict local regulations or better bonus offers, the country sees significant black market activity. Local NGO Legal Business Monitor estimated that online payments heading offshore exceeded MDL 500 million (€24.8 million) in 2020; a single illegal online casino operating out of Chisinau generated MDL 25 million before the organizers were arrested in October of 2025, as reported by Radio Moldova.

The size of the country’s black market isn’t surprising, though; an estimated 82% of all gambling revenue in Eastern Europe was generated by unlicensed platforms in 2024, according to Romanian news outlet Financial Intelligence.

Opening an online casino in Eastern Europe and the CIS

Industry operators and experts agree on one thing: having one’s ear to the ground is extremely important. The Eastern European market is highly dynamic and subject to sometimes unpredictable changes.

Each country has its legal system and numerous political and economic factors in play that can influence the gambling market in one way or the other. Laws are written or repealed and economies boom and bust, but every year, opportunities open up, and those who follow the changes (or even anticipate them) can expect growth — and a payday.

We also monitor and continuously update information regarding gambling regulations in Central Europe, the Nordics and the Baltics, Asia, and the Balkans.

Slotegrator works with companies all over the globe and we are happy to share our extensive experience with both those who are new to the market and seasoned operators looking to expand. Click the button below for a free consultation.