FEDERAL LAW No. 244-FZ «ON THE STATE REGULATION ОF THE ACTIVITIES INVOLVING THE ORGANIZATION OF AND CARRYING ON GAMBLING AND ON INTRODUCTION OF AMENDMENTS TO CERTAIN LEGISLATIVE INSTRUMENTS OF THE RUSSIAN FEDERATION»

 

December 29, 2006                                                                                                                       No. 244-FZ

 

 

THE RUSSIAN FEDERATION

 

FEDERAL LAW

 

ON THE STATE REGULATION ОF THE ACTIVITIES INVOLVING THE ORGANIZATION OF AND CARRYING ON GAMBLING AND ON INTRODUCTION OF AMENDMENTS TO CERTAIN LEGISLATIVE INSTRUMENTS OF THE RUSSIAN FEDERATION

 

Passed by

the State Duma

on December 20, 2006

Approved by

the Federation Council

on December 27, 2006

 

(As revised by the Federal Laws of 24.07.2009 No. 211-FZ,

of 22.04.2010 No. 64-FZ, of 03.11.2010 No. 281-FZ,

of 04.05.2011  No. 99-FZ, of 13.06.2011  No. 133-FZ,

of 18.07.2011  No. 242-FZ, of 21.11.2011 No. 327-FZ,

of 16.10.2012 No. 168-FZ)

 

Chapter 1. GENERAL PROVISIONS

 

Article 1. Scope of this Federal Law

 

1. This Federal Law determines the legal basis for the state regulation of the activities involving the organization of and carrying on gambling within the Russian Federation and establishes the restrictions on these activities for the purpose of protecting public morals, rights and legitimate interests of the citizens.

2. This Federal Law shall not be applicable to the activities involving the organization of and carrying on lotteries, as well as to the activities of the trading organizers carrying on their business in accordance with the Federal Law “On Organized Trades”.

(As revised by the Federal Law of 21.11.2011 No. 327-FZ)

 

Article 2. Legislation on the State Regulation of the Activities Involving the Organization of and Carrying on Gambling

 

The state regulation of any activities involving the organization of and carrying on gambling is implemented in accordance with the Civil Code of the Russian Federation, this Federal Law, other federal laws, the laws of the subjects of the Russian Federation, as well as it can be implemented in accordance with other legislative instruments passed under this Federal Law.

 

Article 3. State Regulation of the Activities Involving the Organization of and Carrying on Gambling

 

1. The state regulation of any activities involving the organization of and carrying on gambling shall be implemented by way of:

1) establishing a certain procedure for the organization of and carrying on gambling and the relevant restrictions, regulatory requirements for any organizers of gambling, gambling houses, visitors of gambling houses, and gambling zones;

2) allocating the territories dedicated for carrying out activities involving the organization of and carrying on gambling, i.e. gambling zones;

3) granting the permits for carrying out the activities involving the organization of and carrying on gambling within the gambling zones;

4) issuing the licenses for activities involving the organization of and carrying on gambling in bookmaker’s offices and betting houses;

5) implementing the government compliance monitoring in the field of the organization of and carrying on gambling, aimed at prevention, revelation and restraint of violations of the law on the state regulation of the activities involving the organization of and carrying on gambling.

(para. 5 as revised the Federal Law of 18.07.2011 No. 242-FZ)

2. The state regulation of the activities involving the organization of and carrying on gambling in accordance with this Federal Law shall be implemented by the Government of the Russian Federation, by the federal executive body, duly authorized by the Government of the Russian Federation to carry out the functions  involving the normative legal regulation in the field of the organization of and carrying on gambling, by other federal bodies of executive power within their competence, the bodies of state power of the subjects of the Russian Federation duly authorized to carry out the functions of the administration of gambling zones.

3. Inspection of technical state of gambling equipment shall be performed by the federal executive body duly authorized by the Government of the Russian Federation and carrying out the functions of monitoring and supervision of compliance with the legislation on taxes and fees.

 

Article 4. Basic Terms Used in this Federal Law

 

For the purposes of this Federal Law the following basic terms shall be used:

1) gamble – a risk-based agreement for possible winnings made by two or several parties to that agreement either between themselves or with the organizer of a gamble according to the rules established by the organizer of gambling;

2) wager - a gamble in which the outcome of the risk-based agreement for possible winnings made by two or several parties to the wager either between themselves or with the organizer of this type of gamble depends on an event about which it is unknown whether it occurs or not;

3) bet – the monetary means which are to be passed over by a gambler either to the organizer of gambling or to other gambler and which serve as a condition for participating in the gamble according to the rules established by the organizer of gambling;

4) winnings - monetary funds or other property, including property-related rights, which shall be paid out or passed over to a gambler upon the occurrence of the result of the gamble as provided under the rules established by the organizer of gambling;

5) organizer of gambling - a legal entity which conducts activities involving the organization of and carrying on gambling;

6) activities involving the organization of and carrying on gambling - activities aimed at making risk-based agreements for possible winnings with gamblers and (or) at arrangement of such agreements made between two or several gamblers;

7) gambling zone - a part of the territory of the Russian Federation which is intended for carrying on the activities involving the organization of and carrying on gambling, whose boundaries are set in accordance with this Federal Law;

8) permit for conduct of activities involving the organization of and carrying on gambling within a gambling zone - a document issued in accordance with this Federal Law which authorizes the organizer of gambling to conduct activities involving the organization of and carrying on gambling within one gambling zone without limitation of number and type of gambling houses;

9) license for activities involving the organization of and carrying on gambling at bookmaker's offices and betting houses - a document issued in accordance with this Federal Law, which authorizes the organizer of gambling to conduct activities involving the organization of and carrying on gambling at bookmaker's offices and betting houses outside the gambling zones, bearing obligatory reference in the attachment thereto as to the number and location of branches and other places where activities involving the organization of and carrying on gambling at bookmaker's offices and the betting houses are conducted;

10) gambler - an individual taking part in a gamble who makes a risk-based agreement for possible winnings either with the organizer of gambling or with the other participant in the gamble;

11) gambling house - a building, structure, construction (an undivided and separate part of the building, structure, construction) which is used exclusively for the activities involving the organization of and carrying on gambling, and also with provision of gambling-related services (including a branch or any other place for conducting activities involving the organization of and carrying on gambling and provision of gambling-related services);

12) casino - a gambling house where the activities involving the organization of and carrying on gambling are conducted by using gambling tables or both gambling tables and other gambling facilities provided for by this Federal Law;

13) hall of gambling machines - a gambling house where the activities involving the organization of and carrying on gambling are conducted by using gambling machines or both, gambling machines and other gambling facilities, provided for by this Federal Law, except for gambling tables;

14) bookmaker’s office - a gambling house where an organizer of gambling makes a wager with participants in that gamble;

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

15) betting house - a gambling house or a part thereof where an organizer of gambling arranges for a wager made between participants in that gamble;

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

16) gambling facilities - devices or attachments used in carrying on gambling;

17) gambling table - a gambling facility which represents a place with one or several panels by using which an organizer of gambling carries on gambling between gamblers therein or acts as a gambler therein through its employees;

18) gambling machine - a gambling facility (mechanical, electric, electronic or any other technical equipment) used to carry on gambling yielding a financial profit which is determined by chance by a device placed inside the body of such gambling facility, without the organizer of gambling or its employees being involved;

19) bookmaker’s office cash desk - a part of the betting shop of a bookmakers’ office where the organizer of gambling accepts bets from participants in that type of gambling, and pays out winnings;

(Para. 19 as revised by the Federal Law of 13.06.2011 No. 133-FZ)

20) betting house cash desk - a part of the betting shop of a betting house where the organizer of gambling accepts bets from participants in that type of gambling, and pays out winnings;

(Para. 20 as revised by the Federal Law of 13.06.2011 No. 133-FZ)

21) gambling house cash desk - a part of the gambling house where the organizer of gambling carries out operations with monetary funds and where special equipment is placed to make it possible to carry out the said operations;

22) gamblers’ servicing zone - a part of the gambling house which accommodates the gambling facilities, gambling house-, betting house- and bookmaker's office cash-desks, and also other facilities used by gamblers;

23) gambling house official zone - a separate part of a gambling house intended for employees of the organizer of gambling to which the gamblers have no access;

24) gambling-related services - hotel services, catering services, show and entertainment-related services;

25) processing center of bookmaker’s office – a part of gambling house where the organizer of gambling maintains the accounting of bets accepted from participants in that type of gambling, records the results of gambling, calculates the amounts of payable winnings, provides to the betting shops of the bookmaker’s office the information of the accepted bets and winnings;

(Para. 25 is brought in by the Federal Law of 13.06.2011 No. 133-FZ)

26) processing center of betting house - a part of gambling house where the organizer of gambling maintains the accounting of bets accepted from participants in that type of gambling, records the results of gambling, calculates the amounts of payable winnings, provides to the betting shops of the betting house the information of the accepted bets and winnings;

(Para. 26 is brought in by the Federal Law of 13.06.2011 No. 133-FZ)

27) betting shop of bookmaker’s office – a territorially separate part of a gambling house where the organizer of gambling makes bet with the participants in that type of gambling  and provides to the processing center of bookmaker’s office the information of any accepted bets, paid and non-paid winnings;

(Para. 27 is brought in by the Federal Law of 13.06.2011 No. 133-FZ)

28) betting shop of betting house – a territorially separate part of a gambling house where the organizer of gambling organizes bets between the participants in that type of gambling  and provides to the processing center of betting house the information of any accepted bets, paid and non-paid winnings.

(Para. 28 is brought in by the Federal Law of 13.06.2011 No. 133-FZ)

 

Article 5. Restrictions on Conducting the Activities Involving the Organization of and Carrying on Gambling

 

1. Activities involving the organization of and carrying on gambling may be conducted solely by organizers of gambling subject to the requirements provided for by this Federal Law, other federal laws, laws of the subjects of the Russian Federation and any other statutory legal acts.

2. Activities involving the organization of and carrying on gambling may be conducted solely inside the gambling houses which are in compliance with requirements provided for by this Federal Law, other federal laws, laws of the subjects of the Russian Federation, any other statutory legal acts of the Russian Federation.

3. Activities involving the organization of and carrying on gambling by using information and telecommunications networks, including the Internet network, and also by means of communication, including mobile communication, is prohibited.

4. Gambling houses (except for bookmaker's offices and betting houses) may be opened within the gambling zones only according to the procedure established by this Federal Law.

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

5. Gambling zones may not be created on the lands of settlements.

 

Article 6. Requirements to Organizers of Gambling

 

1. Only legal entities duly registered according to the established procedure in the territory of the Russian Federation can be organizers of gambling.

2. Any legal entity, which founders (shareholders) are the Russian Federation, the subjects of the Russian Federation or local self-government bodies, as well as any persons having unexpunged or outstanding conviction for economic crimes or for intended crimes of medium gravity, grave offences, and extremely serious crimes cannot be the organizers of gambling.

(As revised by the Federal Law of 22.04.2010 No. 64-FZ)

3. Any organizer of gambling is obligated to provide the data required for execution of the government control over the compliance with the requirements of legislation on the state regulation of activities involving the organization of and carrying on gambling. The content of and procedure for provision of those data are defined by the Government of the Russian Federation.

(As revised by the Federal Law of 18.07.2011 No. 242-FZ)

4. Any organizer of gambling is obligated to provide personal safety of gamblers, other visitors of the gambling house and employees of the organizer of gambling during their stay in the gambling house.

5. When organizing and carrying on gambling, any organizer of gambling must comply with the rules for transactions with monetary funds established by the Government of the Russian Federation in accordance with this Federal Law.

6. The value of the net assets of any organizer of gambling shall not, throughout the period of conducting activities involving the organization of and carrying on gambling, be less than:

1) 600 million rubles - in respect of organizers of gambling in casinos and halls of gambling machines;

 

 Paragraph 2 Part 6 of Article 6 shall not be applicable in regard to the organizers of gambling at the bookmaker’s offices or betting houses being granted with a license for conducting the activities involving the organization of and carrying on gambling  at the bookmaker’s offices or betting houses before the date of enactment of the Federal Law of 22.04.2010 No. 64-FZ, as long as such licenses are valid.

 

2) 1 billion rubles - in respect of organizers of gambling at bookmaker's offices and betting houses.

(As revised by the Federal Law of 22.04.2010 No. 64-FZ)

7. For the purposes of this Federal Law the procedure for estimating the value of the net assets of organizers of gambling shall be established by the federal executive body duly authorized by the Government of the Russian Federation.

8. Ceased to be in force. – Federal Law of 22.04.2010 No. 64-FZ.

 

Part 9 of Article 6 shall not be applicable in regard to the organizers of gambling at the bookmaker’s offices or  betting houses being granted with a license for conducting the activities involving the organization of and carrying on gambling  at the bookmaker’s offices or  betting houses before the date of enactment of the Federal Law of 22.04.2010 No. 64-FZ, as long as such licenses are valid.

 

9. Minimum amount of the authorized capital of any organizer of gambling at bookmaker’s office or betting house is established to be 100 million rubles. Only monetary funds can be contributed as payment of such authorized capital. No borrowed monetary funds can be used to form such authorized capital. Procedure for confirmation of the source of funds contributed as a payment of such authorized capital is established by the Government of the Russian Federation.

(Part 9 is brought in by the Federal Law of 22.04.2010 No. 64-FZ)

 

Part 10 of Article 6 shall not be applicable in regard to the organizers of gambling at the bookmaker’s offices or betting houses being granted a license for conducting the activities involving the organization of and carrying on gambling  at the bookmaker’s offices or betting houses before the date of enactment of the Federal Law of 22.04.2010 No. 64-FZ, as long as such licenses are valid.

 

10. For the purpose of protecting the rights and legitimate interests of gamblers the carrying out of any activities involving the organization of and carrying on gambling at a bookmaker’s office or betting house is allowed only if the organizer of gambling at the boo-maker’s office or betting house holds the performance bank guarantee toward the gamblers. Only a bank can be the guarantor to provide a bank guarantee. Period of validity of the bank guarantee cannot be less than five years. The bank guarantee shall be extended or reissued for the duration of the validity period of the license for such activities available to the organizer of gambling at the bookmaker’s office or betting house and cannot be withdrawn; in that case the bank guarantee for the corresponding period of its validity must be received by the organizer of gambling at the bookmaker’s office or betting house on the date following the expiry of the contract for granting of a bank guarantee. The amount of the bank guarantee shall be defined in the relevant contract and cannot be less than 500 million rubles.

(Part 10 as revised by the Federal Law of 16.10.2012 No. 168-FZ)

11. Any organizer of gambling shall provide to the federal executive body duly authorized by the Government of the Russian Federation, on a yearly basis, the data about any person who holds voting shares or interest in the authorized capital of the organizer of gambling in the amount of not less than 10 percent and therefore directly and (or) indirectly, can have a significant impact on the issues related to the competence of the general meeting of founders (shareholders) of the organizer of gambling, as well as the documents proving such information. The contents and procedure for presentation of the said information and documents are established by the Government of the Russian Federation.

(Part 11 is brought in by the Federal Law of 22.04.2010 No. 64-FZ)

12. Accounting (financial) statement of any organizer of gambling is subject to mandatory annual audit.

(Part 12 is brought in by the Federal Law of 22.04.2010 No. 64-FZ)

13. Any information and documents specified in Part 11 of this Article, the auditor's report on the results of annual audit shall be obligatory attachments to the financial (accounting) statements of the organizer of gambling.

(Part 13 is brought in by the Federal Law of 22.04.2010 No. 64-FZ)

14. Checking of reliability of the data provision of which is stipulated by Parts 3, 9 and 11 of this Article is performed by the federal executive body duly authorized by the Government of the Russian Federation. Any organizer of gambling shall bear responsibility for the completeness and reliability of the above information in accordance with the legislation of the Russian Federation.

(Part 14 is brought in by the Federal Law of 22.04.2010 No. 64-FZ)

15. The Government of the Russian Federation can establish any additional requirements for the organizers of gambling, as well as to the reporting of the organizers of gambling, its contents and procedure for their presentation.

(Part 15 is brought in by the Federal Law of 22.04.2010 No. 64-FZ)

 

Article 7. Requirements for Visitors of Gambling House

 

1. Any gamblers staying in a gambling house and any other persons whose access to gambling houses is not prohibited in accordance with this Federal Law are the visitors of any gambling house.

2. No person who has not reached the age of eighteen can be a visitor of a gambling house.

3. Any organizer of gambling shall be entitled, at its own discretion, to establish the rules for visiting its gambling house that do not conflict with this Federal Law.

4. At the request of employees of the organizer of gambling, any visitor of a gambling house who is violating the rules for visiting the gambling house established according to this Federal Law must leave the gambling house immediately.

 

Article 8. General Requirements for a Gambling House

 

1. Any gambling house must be divided into a gamblers' servicing zone and a gambling house official zone.

2. The text of this Federal Law, the rules for gambling and for visiting a gambling house established by the organizer of gambling, the permit for conduct of the activities involving the organization of and carrying on gambling within a gambling zone or a license for conduct of the activities involving the organization of and carrying on gambling at bookmaker's offices and betting houses shall be posted at a place accessible to the visitors of the gambling house.

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

3. The organization of and carrying on gambling can be conducted by employees of the organizer of gambling only. No person who has not reached the age of eighteen can be the gambling organizer's employee.

4. The gambling facilities operated in a gambling house must be in compliance with the requirements of the legislation of the Russian Federation regarding technical regulations, technical specifications, standards and also any other mandatory requirements and shall be held in the ownership of the organizer of gambling. The documents proving the compliance of gambling facilities with the said requirements shall be kept at all times on the premises of the gambling house.

(As revised by the Federal Law of 16.10.2012 No. 168-FZ)

5. The average percentage of winnings of each gambling machine provided technically cannot be less than ninety percent.

6. A rest-room for the gambling organizer’s employees, specially equipped room for the receipt, delivery and temporary storage of cash, a room for arrangement of the security service of gambling house should be provided for in the official zone of any gambling house (except for betting shops of a bookmaker’s office and betting house).

(Part 6 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

7. No gambling house can be located in a building, structure, construction, in which there are health and fitness and sports facilities (except for the bookmaker’s offices, betting houses, and their betting shops).

(Part 7 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

 

Article 8.1. Requirements for Casino and Halls of Gambling Machines

 

(brought in by the Federal Law of 16.10.2012 No. 168-FZ)

 

1. A casino or a hall of gambling machines can be located only in a building, structure, construction that are subject to capital construction, occupying the whole specified object or being located in its single stand-alone part.

2. The area of gamblers’ servicing zone at any casino can not be less than eighty square meters, and the gambling house cash desk, a cloakroom, rest places for visitors of the gambling house and toilet should be located therein.

3. In the gamblers’ servicing zone at any casino, at least, ten gambling tables must be installed, also gambling machines can be installed and the betting shops of a betting house and (or) a bookmaker’s office can be located therein.

4. In case the gambling machines are installed within the gamblers’ servicing zone in a casino that gambling house shall be subject to the requirements provided for by Part 6 of this Article.

5. The area of gamblers’ servicing zone in a hall of gambling machines cannot be less than one hundred square meters, and it should accommodate also a gambling house cash desk and toilet.

6. In the gamblers’ servicing zone in a hall of gambling machines, at least, fifty gambling machines must be installed; also, the betting shops of a betting house and (or) a bookmaker’s office can be located therein.

7. In the official zone of a hall of gambling machines there should be located a special equipped room or the facilities should be installed to receive, pay and temporary store the monetary funds.

 

Chapter 2. GAMBLING ZONES

 

Article 9. Establishment and Liquidation of Gambling Zones

 

1. Four gambling zones are established within the territory of the Russian Federation. No more than one gambling zone can be established within the territory of a subject of the Russian Federation. When a gambling zone covers a part of the territories of several subjects of the Russian Federation, no other gambling zones may be established within the territories of relevant subjects of the Russian Federation.

2. Gambling zones shall be established within the territories of the following subjects of the Russian Federation:

the Altai Territory;

the Primorski Krai;

the Kaliningrad Region;

the Krasnodar Krai.

(As revised by the Federal Law of 03.11.2010 No. 281-FZ)

3. Procedure for establishment and liquidation of gambling zones and also thei denomination, borders and any other parameters of gambling zones shall be such as defined by the Government of the Russian Federation.

4. Decisions to establish and liquidate the gambling zones are taken by the Government of the Russian Federation by agreement with the state power bodies of the subjects of the Russian Federation. Moreover, the borders of the gambling zones are determined on the basis of proposals of the state power bodies of the subjects of the Russian Federation made to the Government of the Russian Federation.

5. Proposals regarding the borders of gambling zones that cover a part of the territories of several subjects of the Russian Federation shall be made to the Government of the Russian Federation on the basis of agreement between the state power bodies of relevant subjects of the Russian Federation.

6. Procedure for control of the gambling zones that cover a part of the territories of several subjects of the Russian Federation, procedure for exercising within those gambling zones the rights granted to the subjects of the Russian Federation by the legislation of the Russian Federation on taxes and fees, procedure for distribution of the funds resulted from payment of taxes and fees subject to payment to the budgets of the subjects of the Russian Federation between the budgets of the relevant subjects of the Russian Federation shall be determined on the basis of agreement between the state power bodies of the relevant subjects of the Russian Federation.

7. The period of validity of the gambling zones cannot be limited.

(As revised by the Federal Law of 03.11.2010 No. 281-FZ)

8. Decision to establish a gambling zone can set up additional requirements for individual types of gambling zones and other restrictions.

 

Article 10. Control of Gambling Zones

 

1. The control of gambling zones shall be effected by the duly authorized state power bodies of subject of the Russian Federation (hereinafter referred to as the regulatory bodies of the gambling zones). The regulatory bodies of gambling zones that include a part of the territories of several subjects of the Russian Federation shall be defined on the basis of agreements between the state power bodies of relevant subjects of the Russian Federation.

2. Regulatory bodies of the gambling zones shall:

1) perform the functions of organizing the interaction between the state power bodies, local self-government bodies, the organizers of gambling and also any other persons in connection with the implementation of the state regulation of activities involving the organization of and carrying on gambling;

2) submit to the organizers of gambling and also to any other persons, either into their ownership or for lease, the land plots situated within gambling zones in accordance with the procedure established by the legislation of subject of the Russian Federation (an agreement between the state power bodies of relevant subjects of the Russian Federation of the Russian Federation);

3) perform the functions of issuing, re-execution and cancellation of permits for conduct of the activities involving the organization of and carrying on gambling within a gambling zone;

4) exercise the regional state supervision over the organization of and carrying on gambling.

(Para. 4 as revised by the Federal Law of 18.07.2011 No. 242-FZ)

3. The organizers of gambling within the gambling zones shall be entitled to establish non-profit organizations which goal is to arrange interaction between the organizers of gambling and regulatory bodies of a gambling zone and also between other state power bodies and local self-government bodies (hereinafter referred to as the associations of organizers of gambling.)

4. A part of the functions of the regulatory bodies of any gambling zone can be delegated to the association of organizers of gambling under an agreement; the procedure for conclusion of such agreement is established by the legislation of subject of the Russian Federation (agreement between state power bodies of the relevant subjects of the Russian Federation.)

5. In view of exercising the state supervision of the compliance by the organizers of gambling with the requirements of this Federal Law and other statutory legal acts of the Russian Federation the regulatory bodies of the gambling zones are obliged to submit the reports, which content and procedure for submission are established by the federal executive body duly authorized by the Government of the Russian Federation.

(As revised by the Federal Law of 18.07.2011 No. 242-FZ)

 

Article 11. Selection Criteria for Land Plots to Establish Gambling Zones

 

1. When establishing a gambling zone, the land plots making such a zone, shall not be in ownership of and (or) in use by the citizens and legal entities, except for the land plots which were made available for location and use of engineering infrastructure facilities and which are the site of such facilities.

2. When establishing a gambling zone, on the land plots making such zone, only the facilities which are held in the state and municipal ownership and which are not owned and/or used by the citizens and legal entities, except for engineering and transport infrastructure facilities, can be situated.

 

Article 12. Using the Land Plots of Gambling Zones

 

1. The land plots of gambling zones and (or) the facilities located thereon (except for engineering and transport infrastructure facilities and also land plots which are the site of those facilities) shall be transferred into the ownership by or for lease to the organizers of gambling or to other persons.

2. The transfer to the organizers of gambling or other persons into their ownership or for lease the land plots situated within gambling zones shall be effected by the regulatory bodies of gambling zones according to the procedure established by the legislation of subject of the Russian Federation (agreement between the state power bodies of relevant subjects of the Russian Federation.)

 

Article 13. Permit to Conduct Activities Involving the Organization of and Carrying on Gambling

 

1. Permit to conduct any activities involving the organization of and carrying on gambling within a gambling zone shall provide the organizer of gambling with the right to conduct any activities involving the organization of and carrying on gambling within a gambling zone subject to the requirements and restrictions established by the decision to create the relevant gambling zone.

2. Permit to conduct any activities involving the organization of and carrying on gambling within a gambling zone shall be given by the regulatory body of a gambling zone in accordance with the legislation of subject of the Russian Federation (by agreement between the state power bodies of relevant subjects of the Russian Federation), including by conducting an auction or tender.

3. Permit to conduct any activities involving the organization of and carrying on gambling within a gambling zone shall be given without limiting the validity period and shall be valid until the liquidation of the relevant gambling zone. The permit to conduct any activities involving the organization of and carrying on gambling within a gambling zone shall specify the date from which the organizer of gambling is entitled to start the relevant activities and also the denomination of a gambling zone within which such activity may be conducted.

4. Permit to conduct any activities involving the organization of and carrying on gambling within a gambling zone can be cancelled by the regulatory body of a gambling zone in the following cases:

1) liquidation of a legal entity that is the organizer of gambling according to the established procedure;

2) failure of a gambling house to comply with the requirements set under this Federal Law;

3) violation by the organizer of gambling the procedure established by this Federal Law for conducting the activities involving the organization of and carrying on gambling, including when the activities involving the organization of and carrying on gambling are conducted outside a gambling zone;

4) repeated violation by the organizer of gambling the established procedure for providing the information provided for by this Federal Law or detection of the facts of inaccuracy of such information;

5) application filed by the organizer of gambling.

5. Should the organizer of gambling fail, within three years after receipt of the permit for conduct of the activities involving the organization of and carrying on gambling within a gambling zone, to start the activities involving the organization of and carrying on gambling within an appropriate gambling zone, that permit shall be cancelled.

6. Decision to refuse issuance, re-execution or to cancel permit to conduct the activities involving the organization of and carrying on gambling within a gambling zone may be appealed in the court according to in the established procedure.

 

Chapter 3. THE ORGANIZATION OF AND CARRYING ON GAMBLING

AT BOOKMAKER'S OFFICES AND BETTING HOUSES

OUTSIDE GAMBLING ZONES

 

Article 14. Procedure for Opening Bookmaker’s Offices, Betting Houses, Betting Shops at the Bookmaker’s Offices and Betting Houses.

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

 

1.  Activities involving the organization of and carrying on gambling at bookmaker's offices, betting houses, and their betting shops may be organized outside gambling zones according to the procedure established by this Chapter.

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

2.  Bookmakers' offices, betting houses and betting shops (except for those opened within a gambling zone) may be opened only on the basis of licenses for activities involving the organization of and carrying on gambling at bookmaker's offices and betting houses, which issuing procedure is determined by the Government of the Russian Federation.

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

3.  No activities involving the organization of and carrying on gambling by using gambling machines and gambling tables can be conducted at bookmakers' offices, betting houses, and their betting shops.

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

 

Article 15. Requirements for Bookmaker’s Offices, Betting Houses, Betting Shops of Bookmaker’s Offices and Betting Houses

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

 

1.  Bookmakers' offices, betting houses and their betting shops may be located only in buildings, structures and constructions that are the capital construction facilities.

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

2. It is not allowed to locate the bookmakers' offices, betting houses and their betting shops:

(As revised by the Federal Law of 13.06.2011 No. 133-FZ)

1) inside the housing facilities, facilities under construction, temporary structures, in kiosks, under shelters and in any other similar structures;

2) in any buildings, structures and constructions in which children', educational, medical and sanatory-resort institutions are located;

3) in any buildings, structures and constructions of bus stations, railway terminals, river terminals, river ports, airports, at stations and stops of any and all types of public transport (transport of public use) of city and local communications;

4) inside the premises where the activities not related to the organization of and carrying on gambling or provision of gambling-related services are conducted;

5) in any buildings, structures and constructions which are in state or municipal ownership and in which federal state power bodies, state power bodies of the subjects of the Russian Federation, local self-government bodies, state-owned or municipal institutions and unitary enterprises are located (except for betting houses and their betting shops where the bets are made for horse racing and derby which are located at hippodromes owned by central or local government and included in the list defined by the Government of the Russian Federation);

(As revised by the Federal Laws of 24.07.2009 No. 211-FZ, of 13.06.2011 No. 133-FZ)

6) in any buildings, structures and constructions, where cultic and religious organizations are located.

3. Bookmaker's offices, betting houses and their betting shops may not be located on the land plots which are occupied by the facilities specified in Part 2 of this Article.

(Part 3 as revised by the Federal Law of 13.06.2011 No. 133-FZ)

3.1. A bookmaker’s office cash desk should be located in the gamblers’ servicing zone of the betting shop of bookmaker’s office.

(Part 3.1 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.2. Any organizer of gambling at a bookmaker’s office is obliged to provide integrated accounting, processing of bets, recording the outcomes of the gambling and calculation of amounts of winnings to be paid by means of special equipment installed in the processing center of the bookmaker’s office.

(Part 3.2 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.3. Any organizer of gambling at a bookmaker’s office shall be entitled to determine, at its own discretion, an event on which the bet outcome depends except as otherwise provided by the federal laws.

(Part 3.3 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.4. Provisions of Parts 3.1 and 3.3 of this Article shall also be applicable in regard to the betting shops of bookmaker’s offices including those which are located in casinos and in halls of gambling machines.

(Part 3.4 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.5. A betting house cash desk should be installed in the gamblers’ servicing zone of betting shop of a betting house.

(Part 3.5 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.6. Any organizer of gambling at a betting house is obliged to provide integrated accounting, processing of bets, recording the outcomes of the gambling and calculation of amounts of winnings to be paid by means of special equipment installed in the processing center of the betting house.

(Part 3.6 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.7. Any organizer of gambling at a betting house is obliged to provide to the gamblers an opportunity to observe the development and outcome of the event on which the bet outcome depends including by means of special equipment.

(Part 3.7 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.8. Provisions of Parts 3.5 and 3.7 of this Article shall be applicable in regard to the betting shops of betting houses, including those which are located in casinos, halls of gambling machines and bookmaker’s offices.

(Part 3.8 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.9. A processing center of bookmaker’s office should be located in official zone of bookmaker’s office (except for betting shops at bookmaker’s offices.)

(Part 3.9 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.10. A processing center of a betting house should be located in official zone of betting house (except for betting shops at a betting house.)

(Part 3.10 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

3.11. Specially equipped premises should be provided or special equipment should be installed for temporary storage of monetary funds in the official zone of betting shop of bookmaker’s office and betting shop of a betting house.

(Part 3.11 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

4. Any additional requirements for bookmaker’s offices, betting houses, and their betting shops are specified by the Government of the Russian Federation.

(Part 4 is brought in by the Federal Law of 16.10.2012 No. 168-FZ)

 

Article 15.1. State Supervision in the Field of Organization of and Carrying on Gambling

 

(brought in by the Federal Law of 18.07.2011 No. 242-FZ)

 

1. State supervision in the field of the organization and carrying on gambling is implemented by the authorized federal executive body (the federal state supervision) and the executive bodies of subjects of the Russian Federation referred to in Part 2 of Article 9 of this Federal Law (the regional government supervision) (hereinafter to as the “Bodies of State Supervision) according to their jurisdiction in accordance with the legislation of the Russian Federation according to the procedure established by the Government of the Russian Federation.

2. The provisions of the Federal Law of 26 December 2008 No. 294-FZ "On the Protection of the Rights of Legal Entities and Individual Entrepreneurs in the Exercise of State Control (Supervision) and Municipal Control" given the characteristics of the organization and conduct of inspections specified in Parts 3 - 6 of this Article shall be applicable to the relations arising from the implementation of the state supervision in the organization of and carrying on gambling, organization and conduct of inspections of legal entities.

3. The grounds for inclusion of a scheduled inspection into the annual plan of scheduled inspections is the expiry of one year as from the date of:

1) issuing to the entity a permit to carry out the activities involving the organization of and carrying on gambling in the gaming zone;

2) completion of the recent scheduled inspection.

4. The grounds for an unscheduled inspection are:

1) the expiration of the period of  implementation by the legal entity of the improvement notice issued by the body of state supervision regarding elimination of the revealed non-compliance with the requirements  of the law on the state regulation of the activities involving the organization of and carrying on gambling;

2) receipt by the body of state supervision of applications and petitions from the citizens, including from entrepreneurs, legal entities, the information from public authorities, officials of the body of state supervision, local self-government bodies, from mass-media about the facts of violations of the law on state regulation of activities involving the organization of and carrying on gambling;

3) the availability of an order (instruction) of the head (deputy head) of the body of state supervision regarding an unscheduled inspection, issued in accordance with the instruction of the President of the Russian Federation or the Government of the Russian Federation or on a basis of the prosecutor's request to carry out an unscheduled inspection under the supervision of the execution of the laws based on the data and applications submitted to the prosecution bodies.

5. Any unscheduled field inspection on the grounds specified in Paragraph 2 of Part 4 of this Article may be carried out by the body of state supervision immediately with notification of prosecution authority according to the procedure established in Part 12 of Article 10 of the Federal Law of 26 December 2008 No. 294-FZ "On the Protection of the Rights of Legal Entities and Individual Entrepreneurs in the Exercise of State Control (Supervision) and Municipal Control."

6. No preliminary notification of a legal entity regarding unscheduled field inspection on the grounds specified in Paragraph 2 of Part 4 of this Article is allowed.

7. Officials of the bodies of state supervision in accordance with the procedure established in the legislation of the Russian Federation shall have the right:

1) to request and receive from legal entities any information and documents required during the inspections based on the reasoned requests;

2) without obstacles, upon presentation of official ID and a copy of the order (instruction) of the head (deputy head) of the body of state supervisory about the aim of inspection to have an access to the facilities in which the activities involving the organization of and carrying on gambling, and to carry out surveys of the used buildings, facilities, structures, facilities and gambling equipment, as well as research, testing, investigation, examination, and other measures for control;

3) to issue to legal entities the orders to eliminate violations of the law on state regulation of the organization and carrying on of gambling;

4) to draw up protocols on administrative offences related to the violation of the legislation on state regulation of the activities involving the organization and carrying on gambling, to consider the cases on the said administrative offenses, and take measures to prevent such violations;

5) to submit to the competent authorities the information related to the violation of the law on state regulation of activities involving the organization of and carrying on gambling to address issues of opening of criminal investigation.

 

Article 16. Final Provisions

 

1 - 4. Ceased to be in force. – Federal Law of 16.10.2012 No. 168-FZ.

5. As from the effective date of this Federal Law, the issuance of the new licenses to conduct the activities involving the organization of and carrying on gambling and (or) wagers shall cease, except for the licenses to conduct the activities involving the organization of and carrying on gambling within bookmaker's offices and betting houses issued under this Federal Law.

6. Ceased to be in force. – Federal Law of 16.10.2012 No. 168-FZ.

7. The state power bodies of the subjects of the Russian Federation are entitled to take, before July 1, 2007, a decision on prohibition of the activities involving the organization of and carrying on gambling (including in respect of individual types of gambling houses), starting as from July 1, 2007, within the territory of the subject of the Russian Federation (except for within gambling zones.)

8. Decisions on prohibition the activities involving the organization of and carrying on gambling (including in respect of individual types of gambling houses) and on setting restrictions upon that activity on the territory of a subject of the Russian Federation (except for gambling zones) taken by the state power bodies of the subjects of the Russian Federation before the effective day of this Federal Law shall be held valid.

9. The gambling zones provided for under this Federal Law shall be established before July 1, 2007. The activity of gambling houses that do not have any permit provided for under this Federal Law to conduct the activities involving the organization of and carrying on gambling within a gambling zone shall be terminated before July 1, 2009, except for bookmaker's offices and betting houses being in compliance to the requirements of this Federal Law.

10. Until the expiration of six months from the effective day of this Federal Law the Government of the Russian Federation and state power bodies of the subjects of the Russian Federation shall adopt the statutory legal acts required to implement the provisions of this Federal Law.

 

Article 17. Ceased to be in force. – Federal Law of 04.05.2011 No. 99-FZ.

 

Article 18. On Amending Part Two of the Taxation Code of the Russian Federation

 

To amend paragraph 1 of Article 333.33 of Part 2 of the Taxation Code of the Russian Federation (the Russian Federation Code (Sobraniye Zakonodatelstva Rossiiskoy Federatsii), 2000, No. 32, Art. 3340; 2004, No. 45, Art. 4377; 2005, No. 30, Art. 3117; No. 52, Art. 5581; 2006, No. 1, Art. 12; No. 27, Art. 2881; No. 43, Art. 4412) as follows:

 

Paragraph 1 of Article 18 comes into effect on June 30, 2009 (Part Two of Article 20 hereof.)

 

1) Subparagraph 72 shall be deemed to have lost force;

 

Paragraph 2 of Article 18 comes into effect upon expiration of one month as from the date of official publication (Part Three Article 20 hereof).

 

2) to supplement with sub-paragraph 85 as follows:

"85) in consideration of actions undertaken by duly authorized bodies connected with issuance of licenses to conduct the activities involving the organization of and carrying on gambling at bookmaker's offices and betting houses:

consideration of application for issuance of a license - 300 rubles;

issuance of a license - 3000 rubles;

re-issuance of a license - 1000 rubles."

 

Article 19 comes into force on June 30, 2009 (Part Two of Article 20 hereof).

 

Article 19. On Invalidation of Individual Provisions of Legislative Acts of the Russian Federation

 

The following shall be deemed to have lost force:

1) Paragraphs Four Hundred and Thirty though Four Hundred and Thirty Three of Paragraph 5 of Article 2 of the Federal Law No. 127-FZ of November 2, 2004 On Amending Part One and Two of the Taxation Code of the Russian Federation and Other Legislative Acts of the Russian Federation and also On Invalidation of Individual Legislative Acts (Provisions of Legislative Acts) of the Russian Federation (Sobraniye Zakonodatelstva Rossiiskoy Federatsii), 2004, No. 45, Para. 4377);

2) Paragraphs Seventy Eight and Seventy Nine of Sub-paragraph (a) of Paragraph 9 of Article 1 of Federal Law No. 80-FZ of July 2, 2005 On Amending the Federal Law On the Licensing of Individual Types of Activity, the Federal Law On the Protection of Rights of Legal Persons and Individual Entrepreneurs In Exercise of State Control (Supervision) and the Code of the Russian Federation On Administrative Offences (Sobraniye zakonodatelstva Rossiiskoi Federatsii), 2005, No. 27, Item 2719.)

 

Article 20. Enactment of this Federal Law

 

1. This Federal Law enters into force on January 1, 2007, with the exceptions of paragraph 1 Article 17, Articles 18 and 19 of this Federal Law.

2. Paragraph 1 Article 17, paragraph 1 Article 18 and  Article 19 of this Federal Law enter into force on June 30, 2009.

3. Paragraph 2 Article 18 of this Federal Law enters into force upon expiration of one month as from the date of its official publication.

 

President

of the Russian Federation

V. PUTIN

Moscow, the Kremlin

December 29, 2006

No. 244-FZ