Since 2017, when targeted contributions were legislated, betting companies have stood as the country’s primary sponsors of sport after the state itself. This year, that burden could rise as annual target allocations climb from 1.5% to 2% of revenue from all bets.
The change may look small at first glance, yet in 2023 betting firms paid 19.1 billion rubles in social contributions for sports development. A 25% increase on that base is substantial. If the cap is exceeded, some bookmakers might find legal operations no longer profitable.
Import substitution in action
In 2022, most Western software and hardware suppliers withdrew from Russia. Bookmakers were compelled to overhaul processes, build internal capabilities, and source essential tools from domestic partners—from servers to statistics, betting lines, and odds calculations. Previously, foreign software played a key role in computing odds by using specialized mathematical models to gauge event probabilities.
Some firms had already tackled this shift. For instance, Fonbet moved to Russian-made equipment and domestic vendors even before sanctions tightened. Its core IT infrastructure remained in Russia, with a data center in Moscow and a processing server in Serpukhov. Today, major decisions about lines and odds are driven by the bookmaker’s internal IT experts, not only in Russia but within the wider organization.
Yet it isn’t possible to abandon all purchased software—especially in areas like customer data protection. Fonbet continues to work with providers such as Kaspersky, while domestic solutions have proven viable. Early challenges have given way to tangible rewards as import substitution matures.
“The lessons of recent years show that relying on Western technology carries risk; it is wiser to rely on in-house development or partners in friendly countries. Foreign licenses can be revoked abruptly, pausing operations. For a large enterprise, technological sovereignty matters,” said Evgeny Voropaev, head of the information security department.
Internal solutions enable added value for customers. The bookmaker’s own mathematical models, with broader event coverage, yield a wider range of odds and enable bets to close later in the event. This, together with reduced real-time delays, gives customers a better chance to place bets at the end of a game. While the market average is 4–5 seconds, Fonbet has achieved 1-second betting times in some events, a capability enabled by import substitution.
Odds are set by the bookmaker itself, creating independence from foreign providers and a human element, since customers ultimately place bets against real people. Even when mathematical models are used, initial data are chosen manually by bookmakers to determine what data is valuable and what is not.
Thus, Russian-developed solutions help betting companies maintain stable operations and reduce exposure to foreign disruptions, avoiding income losses. They also expand the number of lines and shorten bet-acceptance times, creating a competitive edge in the market. This translates into more customers, higher revenue, and better resilience against interruptions.