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RUSSIA by Anonymous
creating additional "reservations", apart from those listed in the article.
The deputy explains his initiative by the fact that the would-be zones continue to be des-
I
n a year Russia faces a total gaming ban, which will shut down a US $4.5 billion busi- olate land plots which require considerable capital investments. The bill drove massive reac-
ness. According to the law signed by Putin in December, 2006, all gaming activities tion by Popov's party colleagues who claim that an idea of revision has not future. In the
will be legal only in the four special zones, located in Far East, Altay, Azov and same week, two days later the bill was withdrawn from the State Duma by the same deputy
Kaliningrad regions, where the business has to move its casinos and gaming facilities without any comments. Apparently, Russian authorities are steady in their will to start up a
before July, 2009. multibillion relocation project that has not found any popularity among investors, develop-
At the moment, the zones do not seem to be an exciting place for international investors ers, hotel, tourism and casino operators.
or large local operators. The Far Eastern zone does not have a clear location yet and Meanwhile, the Russian gaming business community is looking for new markets and
changes its place together with the plans of regional authorities. The creation of the opportunities. Storm International has recently launched a casino in Armenia and looking
Kaliningrad and Altay zones has been approved by the Prime Minister but these gaming at other international destinations. Ritzio Group has been growing its gaming clubs opera-
enclaves exist only on paper. No developments have been observed in these areas until very tions in Western Europe. Jackpot chain owners have joined a food retail project, followed by
recently, which which leaves question marks as to whether these zones will be able to wel- middle-size Moscow-based businesses. Others invest in films production and flower shops.
come visitors in the time indicated by the federal law. Local gaming operators are planning to close their sites by the date indicated by the law,
The Azov zone, located on the border of Rostov and Krasnodar regions, is the only one while it is clear that no zones will be ready for functioning by the same date.
that has a development plan. Today the zone is nothing but a field of green wheat to be Does this mean that Europe, Las Vegas and Macau should get ready for an army of
harvested by October, with preliminary construction work starting in November 2008. The Russian players on their doorsteps?
auction to rent land for building casinos takes place in Rostov and Krasnodar in July.
According to the agreement between the zone administration and a gaming/real estate
development companies, the participants need to start constructing gaming facilities in
November 2008 and are obliged to finish all works by June 1, 2009.
The lack of development in all potential zones raises another bold question mark against
their future.
The level of regional and federal involvement, infrastructure costs and guarantees to
investors are the main questions that find no answer. Zones creation finds an opposition
among the regional anti-gambling organizations and local communities, who see a thread
of problem gaming coming to their regions and do not understand an official position of
the State towards gaming. "Personally, I have not fathomed a true meaning of the passed
gaming law", says Lavrenty Gubin, the Storm International spokesman, to Vedomosti news-
paper.
On June, 30th, a United Russia deputy, Alexander Popov, came with an initiative of the
current law revision, which suggested prolongation of the term of gaming business reloca-
tion to the zones for three years – from July 1st 2009 to July 1st 2012. It has also been
mentioned that the Government should be granted a right to make independent decisions
on setting up new zones "by a motivated request" of regional authorities. It basically means
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