VulkanBet.ru has decided to exit the Russian market at the beginning of 2021 out of concerns against the country’s planned market regulation.
VulkanBet Withdraws From Russia
Russian sports and esports betting operator VulkanBet.ru has decided to retreat from the Russian market in search of better opportunities. The company’s decision comes in direct response to Russia’s planned gambling regulation legislature.
VulkanBet will cease all operations in the Russian Federation from 1 January and has already stopped accepting new wagers. However, the operator has stressed that it would honor all of its existing obligations to players and contractors by December 31.
The retreat may not be permanent. VulkvatBet has noted that it would continue monitoring the situation on the Russian gambling and betting market. If the conditions improve, the operator may decide to reenter the Russian gambling industry once again.
Retreat in Response to Regulation
VulkanBet spokesperson Anna Dmitrieva has tied the operator’s decision to Russia’s draft gambling market regulation. According to Ms. Dmitrieva, the bill contained certain suspicious details that do not give confidence for the future of Russia’s gambling industry.
Ms. Dmitrieva is referring to Russia’s Bill No. 1055657-7. It aims to restructure the local gambling market by improving the State’s control and supervision over the industry. If the bill is accepted, it would also introduce higher tax proceeds from gambling and streamline the detection of illegal operations.
The draft bill was announced in November this year and quickly attracted criticism from the Russian gambling industry at large. The second reading is scheduled to take place on 22 December.
Meanwhile, Ukraine recently legalized bookmaking and land-based casinos. In fact, the country is already planning gaming week for early 2021.
Time to Move On
VulkanBet will continue monitoring the developments on the Russian market and may eventually return to it. However, for the time being, the operator will focus on markets with better conditions for conducting business.
Ms. Dmitrieva has said that VulkanBet will end 2020 with healthy financial figures, with a substantial overall increase compared to the first half of 2019. However, site traffic analytics suggest fairly low engagement.
It remains to be seen what VulkanBet will do in the future.