Gambling companies in Belarus raise concern against $ 1 Million Security Deposit

The government of Belarus has recently proposed a mandatory $1 Million security deposit for online gambling companies. The online gambling operators fear that this will adversely affect their business.

While this is not a new thing – Italy requires a guarantee of € 1.5 million and Czech Republic requires € 1.1 million – this obligation could be problematic in Belarus, feel industry insiders.

Yulia Leshkova, Deputy Director of the Pari-Match betting network, said:  “Not all bookmakers in Belarus can afford to create a similar security deposit. Tightening the requirements will lead to a narrowing of the market and will deprive it of healthy competition.”

The governments insist on a security deposit for the simple reason that the gambling operators must be able to, regardless of financial circumstances, to pay the winnings, taxes, fees and duties, penalties and other mandatory payments. The guarantee is required to ensure such mandatory payments.

However, the hefty sum required as guarantee in Belarus, according to representatives of the industry, will negatively affect the country’s bookmaking market.