Russia targets 1xBet in investigation into illegal gambling tech hub
Authorities allege over £680m in illegal bets taken over five-year period as regional gambling centre raided
Russian authorities have raided a large-scale tech hub allegedly being used by 1xBet amid claims the firm processed more than PHP65bn (£680m) in illegally placed bets over a five-year period.
Authorities claim three individuals working within the site received cash payments from Russian citizens, with accounts subsequently being created on the 1xBet site and bets being processed illegally from October 2014 to May 2019.
Proceeds from these payments were then transferred to banks outside the Russian federation and allegedly into the hands of organised criminal groups all without going through the TsUPIS (Center for Controlling Interactive Bets Processing and Payment of the Appropriate Fees) system, where taxation revenue is collected.
The raid follows a joint investigation by the Federal Tax Service of Russia, Russia’s Ministry of Internal Affairs and the country’s regional FSB service in the Bryansk region.
Searches were conducted at several addresses where alleged illegal betting took place, with computer equipment and other items seized.
Criminal charges were issued against three individuals who had already fled Russia, with authorities later adding them to Russia’s international wanted list and seizing assets of more than PHP1.5bn (£15.7m).
It is understood that a fourth person, a cashier for the group was arraigned on separate charges and is currently in Russia awaiting prosecution.
The case is the first major investigation into an international sports betting operator and marks a significant stepping up of Russian authorities’ efforts in combatting illegal online gambling.
Previously efforts have been limited to issuing do not serve notifications and blocking websites. In 2018, Russian authorities launched a legal case against Google, alleging it had failed to block illegal sites.
Online betting is currently only allowed in the Russian Federation with a licence from the Federal Tax Service and on the condition that operators connect to TsUPIS.
Yet once payments are put through this system, monies can be passed onto bookmakers and winnings paid out to punters. Online casinos and unlicensed sports betting are currently prohibited.