Proposals for refining the much-discussed bill "On the Activity of Developing and Distributing Video Games in the Territory of the Russian Federation" continue to pour into the State Duma. Recently, the Organization for the Development of the Video Game Industry (ODVGI) sent lawmakers its amendments.
"Smuta"
The ODVGI focused on the part of the bill related to the support of Russian gaming companies, suggesting its expansion.
"The bill is positioned as a general regulation for the video game industry, but it approaches the issues of industry support and creating a foundation for its development and global competition very formally, limiting itself to generic statements about what is already being done by the government, regions, and public organizations. In this regard, we would like to propose several industry support measures in this letter, which, in our opinion, if included in the bill, could radically shift its focus towards industry development," stated the ODVGI.
What specifically does the ODVGI propose:
- open a state fund for the development of the video game industry that will provide grants and investments to developers from Russia;
- exempt Russian developers from paying VAT on game sales in the domestic market for ten years. This exemption exists currently but is not enshrined in law and can be revoked at any moment;
- exempt Russian developers from paying profit tax for five years;
- reduce insurance contributions for gaming companies or initiate their return;
- oblige organizers of esports tournaments in Russia to host an equal number of disciplines for Russian games as for foreign ones during championships, especially if the tournaments are partly funded by the state budget. The prize pool for these disciplines should be comparable.
In December 2024, the ODVGI stated that it considered the bill too stringent and even harmful to the industry. According to their view, if the initiative is adopted in its current form, the industry will regress by several years.