Changes to the law on Accounting

On July 26, 2019, the Federal Law No. 47-FL of July 26, 2019 entered into force with amendments to the law “On accounting” and other legislative acts related to regulation of accounting.

Changes should promote conditions ensuring the completeness and reliability of financial statement figures, and comprehensiveness of facts of economic activity in accounting.

The amendments mainly relate to regulation of fiscal institutions accounting in terms of creating conditions for state regulation of accounting and document storage, taking into account the provisions of budget legislation. There are also changes for legal entities engaged in commercial activities.

In particular, it is provided for:

application of a unified term “fiscal institution”;

creation of a special body for the examination of draft standards of accounting for public finances;

fixing the ban to clarify already approved statements.

Among the changes relating to all legal entities, including commercial, the one of high importance is clarification of the powers of chief accountants, now vested with the right to demand from all employees the correct execution and presentation of primary accounting documents. This right also extends to other persons responsible for accounting, for example, directors acting as chief accountant, third-party accountants, or organizations that provide accounting services under contracts.

TOP-10 Russian betting companies by income for 2018

Information agency Credinform represents the ranking of Russian betting companies by income for 2018. Agency experts, using the Information and Analytical system Globas, selected TOP-10 Russian betting companies by maximum income indicator for 2018, analyzed the net profit and assets of bookmaker's offices. They also estimated the earnings of Russian sport and the State of the RF from the activities of betting organizations.

Bookmaker's offices are legal entities that accept cash bets for various upcoming events with a pre-agreed winning amount. The winning amount is determined by the probability and number of payments. Mainly, bookmakers accept bets for upcoming sports events, for example, football, basketball, hockey etc. With the development of technologies you can make a bet without leaving your home, just having Internet access and choosing a bookmaker's office. In addition, modern technical capabilities allow betting on live1 events. Thus, it is possible to assess the situation in a particular event, and only then place a bet on a specific outcome.

The activity of online bookmakers were banned in Russia until 2015. However, after amendments were made to the Federal Law №244-FZ «On state regulation of the organization and conduct of gambling and on amendments to some legislative acts of the RF», bookmaker's offices in the RF were legalized, with the exception of special gaming zones. The evidence of legal activity is a special license, giving the right to carry out and conduct gambling and bet on various sports events. In the absence of a permit for the activity, the bookmaker's office automatically falls into the category of prohibited organizations.

In March 2017, the President of the RF V.V. Putin signed a law, regulating the financial activities of bookmakers. Amendments were made to the Federal Law №244 «On state regulation of gambling». Article 6.2. «Purpose-oriented allocations from gambling made by the organizer of gambling in the bookmaker's office» allowed bookmaker's offices to conclude officially sponsorship contracts with sports clubs of Russia, to finance tournaments and various sports events. Each betting organization got the opportunity to advertise itself and promote its brand in the media, on federal television channels and the Internet. In return, betting companies should direct 5% of their income in the form of investment for the development of domestic sport. Thus, the income growth of all betting organizations for one financial year amounted to 100, 200, 300 and even 1000%.

Table 1. Income, net profit and assets of TOP-10 betting companies (BC) in Russia
Rank Name Income in 2018, billion rubles Growth (decrease) by 2017, in % Net profit, billion rubles Assets, billion rubles
1 BC Liga Stavok
Лига ставок
36,2 up202,4 0,6 2,3
24,8 up154,6 9,3 6,1
3 BC Bingo Boom
Бинго Бум_eng
20,2 up136,2 0,4 1,9
17,3 down-4,3 0,5 1,6
12,3 up13,6 0,3 1,7
10,9 up339,7 0,7 1,1
7 1xStavka
8,9 up146,6 4,7 7,6
2,3 up246,8 0,2 1,4
1,8 up681,3 0,1 1,4
10 BC Marafon Bet
Марафон Бет_eng
0,9 up1908,0 0,1 0,3
TOP-10 betting companies 135,5 up104,8 16,9 25,4

Source: Information and Analytical system Globas

The first place in the ranking is taken by the bookmaker's office «Liga Stavok» with the highest income for 2018 (36.2 billion rubles). According to experts of the Information agency Credinform, tax deductions for 2018 will amount to 458.2 million rubles. «Liga Stavok» is the general partner of the Russian Premier League (RPL2 ). The contract amount is estimated at 500 million rubles and many times exceeds the contract of the previous general sponsor of the Russian Premier League – the insurance company Rosgosstrakh. The bookmaker's office «Liga Stavok» invested 1.8 billion rubles in Russian sports at the end of 2018. Such volume of attracted capital makes the betting company a leader among investors of domestic sports.

The second place belongs to the bookmaker's office FONBET. Its income amounted to 24.8 billion rubles. At the beginning of the season 2018/19 FONBET signed an exclusive contract with the Continental Hockey League (KHL) and acts there as official sponsor in it. In addition, the company sponsors FNL3 and PFL4. Initially, FONBET was supposed to become the general sponsor of RPL, but due to a number of disagreements, it failed to agree. According to experts of the Information agency Credinform, the tax deductions of FONBET to the budget of the RF are the largest: in 2018 their amount was 701.6 million rubles. The company also takes the second place in terms of investment in Russian sports (1.2 billion rubles). There is no equal company in terms of net profit.

In terms of income, the bookmaker's office Bingo Boom takes the third line in the ranking (20.2 billion rubles). Its tax deductions, according to experts of Credinform, will yield the State 103.3 million rubles for 2018, and the amount of investment in the sport industry amounted to slightly more than 1 billion rubles.

The company BETCITY was able to earn 17.3 billion rubles. Immediately after the entry into force of the Law «On purpose-oriented allocations from gambling» BETCITY has entered into a partnership agreement with the football club PFC CSKA for 5 years. Details of the sponsorship contract were not disclosed, but with the help of the funds received «CSKA» were able to strengthen quite well before the start of the season 2018/2019. According to experts of Credinform, the tax deductions for 2018 amounted to 100 million rubles, and the amount of investments was 865 million rubles.

The fifth line of the ranking belongs to the bookmaker's office BALTBET. Until 2018, the company acted as the general sponsor of the football club Tosno. By the end of the season 2017/18 Tosno FC has been declared bankrupt and is currently in the liquidation. According to experts of Credinform, the Russian budget received from this company 152.6 million rubles from taxes on gambling in 2018, and the amount of capital raised exceeded 600 million rubles.

The income of the bookmaker's office Winline allowed it to occupy the 6th line of our TOP list (10.9 billion rubles). Winline is the main sponsor of Spartak FC. The organization logo is placed on the football uniform on the right shoulder. Winline was the first organization, which has begun cooperating with football clubs in Russia. Thanks to the bookmaker's office Winline, domestic sports were able to get 545 million rubles for development, and, according to experts of Credinform, the state treasury has increased by 128.4 million.

«1xStavka» is a subsidiary of «1xBet». By media level, it is the most recognizable bookmaker’s office in Russia. «1xStavka» companies entered into exclusive contracts in Russian sports. The partnership agreements were reached with Zenit FC, Lokomotiv FC and Krasnodar FC. The leaders of the Russian football championship made the brand «1xStavka» the most recognizable and discussed among the population. The bookmaker’s office «1xBet» continues to work in the direction of sponsorship contracts and has already reached the agreements with global top clubs, such as: Barcelona FC and English football club Tottenham. Data on the amount of taxes paid in Russia are not available. The level of investment in Russian sports exceeds 445 million rubles.

The bookmakers' income rating is closed by bookmaker’s office LEON, bookmaker’s office OLIMP) and «Marafon Bet». According to experts of Credinform, the total amount of tax deductions reached 174.1 million rubles. Note that the bookmaker’s office OLIMP is the general sponsor of the Russian Super Cup. The tournament where the winner of the Cup of the country and the current Champion of the country meet. The total investment from three organizations amounted to 250 million rubles.

The results of the ranking showed that thanks to the bookmaker’s offices the Russian state received 1.8 billion rubles in the form of tax deductions, and 6.7 billion rubles were directed for the development of domestic sports. However, the main cash flows were concentrated among the best Russian sport clubs, which were commercially profitable for bookmakers, and the development of regional sports was again frozen. It is necessary to regulate investment flows, otherwise the development policy of domestic sports will fail.

1 Live event –event held at a real time
2 RPL - professional football league, top division in the Russian football league system
3 National Football League (FNL) - professional football league, Russia's second most powerful football league
4 PFL - professional football league, Russia's third most powerful football league