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Russia’s loss could be Kyrgyzstan’s gain
Kyrgyzstan could be about to cash in on Russia’s decision to
News
banish gambling to four remote zones by building its own
gambling zone close to the large mountain lake of Issyk Kul.
Kyrgyzstan ambassador to Russia Raimkul Attakurov said:
“We are considering the possibility of building a huge
gambling centre near Lake Issyk-Kul. Some businessmen
EUROPE CENTRAL, EAST & CIS have already shown an interest in the project.”
The project could see an airport built near to the lake.
St Petersburg raids prove fruitful
underground
RUSSIA
St Petersburg police have seized more than 3,300 pieces of gambling equipment from illegally operating venues during just one week, following raids on 500 venues.
They have arrested the owner of one illegal gambling venue and detained another owner whilst launching four criminal cases and 10 administrative cases. With the four zones in the Primorye,
Altai, Kaliningrad Oblast and Azov regions all still years away from being opened, not all operators are keen to shut up shop and many are disguising their operations as lottery centres.
The Russian law on lotteries is at present full of loopholes and so vague that it does not even contain a consistent description of what constitutes lottery facilities. Some businessmen are
using this lack of legal clarity to their short-term advantage, classifying slot-machines and other facilities as lottery systems.
Critics speculate that the law will only result in a massive boost of illegally operating private gambling houses. Dmitry Nevelsky, head of the St. Petersburg Association of Gambling Busi-
nesses, said few businesses will risk relocation during the instability of the crisis, nor would they find it worthwhile investing far from their hometowns.
The Russian authorities are to chase poker to the far reaching four gambling
zones having said that it is no longer classed as a sport shutting the door on
casino operators who hoped to keep part of their gambling profile by offering
poker. Skill, chance or sport? Phil Martin reports.
Duma bans
poker following
Olympic shuts
reclassification
49 venues in
first half of 2009
pokerchase marketforces
RUSSIA ESTONIA
The Russian government has recate- Having been forced to withdraw from the Ukraine market
gorised poker’s status from a sport due to a government ban on gambling, Estonia-based
to a gambling pastime forcing former Olympic Entertainment has been forced to close a total of
casino owners to fold on any plans 49 casinos over the first six months of 2009.
to stay open as card venues and Of the venues shut, 24 were in Ukraine, 13 were in
leaving 70 poker licences in the Estonia and seven were in Latvia. Olympic had already
country null and void. shut ten venues in 2008.
The message from Vitaly Mutko, min- It has also reduced the number of machines in most of
ister of sports, tourism and youth poli- its venues and has also been forced to slash its work
tics, was clear. “Poker doesn’t exist as a force by 616, or 16 per cent due to poor first-half earn-
sport,” he said defiantly. “The decision ings which slumped by more than 90 per cent. Consoli-
to include poker on the sports register dated revenues for the first-half of 2009 dropped by 31
was supposed to be made by a special per cent to E61.7m, whilst EBITDA spiralled by 91 per
ministerial commission, not by the cent to just E1.53m from E17.25m in 2008.
administration of the Russian Sports The drop in revenues fell most alarmingly in its
Agency. In addition, the decision was domestic market, Estonia, down 56 per cent although
supposed to be registered in the Justice Latvia fell by 40 per cent and Lithuania by 38 percent.
Ministry, which did not happen.” Whilst the first six months of 2008 saw a profit of E6.4m,
Backing up his words was a decree this year’s figures saw a loss of E22.5m.
published on the ministry’s web site. The group stated: “The main objective of the group in
Interior Minister Rashid Nurgaliyev 2009 is to adapt to the rapidly changing market situa-
and Prosecutor General Yury Chaika tions, raising the market share and improving the effi-
instructed officers to ‘decisively ciency in our core activity. In order to comply, the
clamp down on illegal gambling group’s management will make decisions regarding the
activity, including that done on the changes in our operating activities based on cash flow
internet, through poker clubs, fruit indicators. In spite of negative developments on
machines, etc.’ markets, in the second quarter of the year the level of
Dmitry Lesnoy, president of the consolidated revenues have stabilised after a significant
Russian Sports Poker Federation, said decline during the first two months of this year.”
it was with regret that Russia’s poker GGR from the operations which remained open were up
industry had been all but closed. “We very marginally (0.7 per cent) in the second quarter from
are in mourning. It will be a great pity the first. Olympic saw first-half growth in Slovakia, Romania
for us if Russian poker stars move and Belarus, while revenues from Poland witnessed a more
abroad to play under the flags of other Tour (EPT), which was to be held in assembled in Ukrainian history.” modest single-digit drop. Poland is now the group’s most
countries. But we have to accept the Moscow for the first time. Lesnoy added: “As far as I under- profitable market accounting for 23.4 per cent of its total
inevitable,” he said. Press officer Donna McLoughlin stand, the government has decided to It was of course Ukraine that caused the greatest loss.
Samuil Binder, deputy executive said: “With the assistance of the stop this process because a lot of Olympic estimates that the month-long shutdown of all
director of the Russian Association for Ukrainian Poker Federation, in associ- casinos started to ‘re-equip’ as poker of its venues in May and June cost a total of E1.2m in
Gaming Business Development, ation with the Ukrainian Ministry of clubs. But they chose such a radical lost gaming revenues.
added: “It’s hard to understand the Youth, Family and Sport, PokerStars way. The authorities are using surgical It was forced to liquidate its three Ukrainian sub-
logic and decisions of dilettantes,” will host the first EPT Kiev Sports methods instead of therapeutic ones. I sidiaries Olympic Casino Ukraine TOV, Ukraine Leisure
Binder observed. “We have a really silly Poker Championship.” don’t understand why poker players Company and Eldorado Leisure Company after the tempo-
situation in Russia. It is total chaos.” Replacing the Russian Poker Open have to suffer, because I have always rary ban became permanent. The three subsidiary compa-
The most immediate of casualties that was to be held at the Radisson SAS believed that poker is like chess or nies have now submitted a bankruptcy petition in
in terms of tournaments was Poker- Slavyanskaya, this poker tournament is bridge - the game is among the most accordance with that liquidation process. It estimates the
Stars’ Soviet leg of the European Poker expected to produce the largest field intelligent in the world.” cost of the closures to be in the region of E12m.
12 September 2009 • europecentraleast&cisnews
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