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Russia back to square one in future planning


With the four zones unworkable and gambling appetite still high if somewhat underground in the capital, Lyubov Loginova, head of Alsart Group, believes Russia is back under starter’s orders when it comes to its gambling future.


backtothefuture VIEWPOINT


“Everybody knows that gam- bling in Russia is banned to four approved zones for gambling and everybody knows that these zones are far from being started. The only hope, Azov City, established a precedent in relocating the zone with the help of good lobbying, so where are we now? Practi- cally right at the beginning of establishing the new Russian gambling business, back to the point we were many years ago. It is relative easy to fore- cast the future of gambling in Russia through relevant world experience as there are only two possible devel- opment alternatives. The first scenario is when gam- bling is banned but exists in a hidden form. As a result the


and functions on every street. A high level of bureau- cracy gives fly-by-night busi- nesses a great opportunity to develop and gaps in current legislation give way to semi- legal or completely illegal gambling slots to emerge rapidly hiding under titles of internet or lottery clubs. Of course, the Russian


government will end up losing millions and billions of dollars.


Indeed, that is what we


have at the present moment. Gambling in Russia exists


government is aware of the real situation with the gam- bling business and the initia- tive to create four gambling zones was the first step in demonstrating its readiness to eliminate the drawbacks. It is obvious that the deci- sion to ban gambling, though, completely was wrong and brought neither advantages nor profit and everybody realizes this was a mistake. The ban was aimed at protecting young and elderly people from uncon- trolled gambling, and that is


absolutely right. But we understand that the main profit for casinos didn’t come from these social groups but from established people with a stable level of income who control their life and actions. But the main disadvantage of the gambling ban is the billions lost in tax- ation that the Russian gov- ernment loses every month. From the moment of the ban the Russian government lost at least 30,000m rubles (US$960m). Participants in the gambling market were the most punctual tax payers in Russia. By comparison in 2009 tax revenue in Georgia has doubled from the previ- ous year and gaming tax pay- ments account for 25 per cent of the total income. There are now rumours


circulating that a document signed by our Prime Minis- ter will allow 12 casinos to


be opened in Moscow in 2012.


On the other hand, new


Moscow mayor Sergey Sobyanin has ordered the closure of all lottery and entertaining clubs in the ter- ritory of Moscow. He stated that all civil servants who are not aware of lottery of entertaining clubs at the ter- ritory of their districts will be dismissed. And indeed it took only two days to close all entertaining clubs at the territory of Moscow. The football World Cup in


2018 requires a cardinal decision on gambling’s future. Everybody realises that casinos, if allowed in huge hotel in big cities, will bring millions of dollars. And we suppose that in the near future some crucial changes in legislation will be made that will regulate gambling at a completely new level.


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January 2011 •comment 21


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