International: The Russian casinos revolution

Beginning on 1 July, all casinos and slot machine halls in Russia are due to be banned and replaced by a handful of Vegas-style 'gambling zones' distributed throughout the country.

In 2006 Vladimir Putin, who was president at the time, pushed through the law that ban gambling all over the country except for in four specifically chosen 'gambling zones': one in the Far East near the North Korean and Chinese borders; one in the Altai region; a third in Kaliningrad; and a fourth close to the Azov Sea in the south of Russia. Touted as developing future Russian Las Vegases, the plan represents an effort to shift gambling away from major cities (30 casinos and over 500 slot machine halls in Moscow alone would be forced to close) and bring business and tourism to other, more remote, areas of the country.

The new gambling zones at these sites, however, have yet to be built despite the 1 July implementation date of the new law and the closing of existing gambling establishments with casino games could therefore have a negative impact on unemployment thereby exacerbating already difficult economic conditions.

Players are expected to flock to nearby pro-gambling destinations and legal casinos in Eastern Europe, and poker players may take some comfort in the fact that the ban could see an emergence of 'poker sports clubs' or 'private members clubs' where poker - which is categorised as a sport in Russia - would still be allowed. Indeed, several existing casinos have held poker lessons for the past few months to attempt to create a market amongst those who will no longer have lega casinos to visit nearby.

The casinos have pleaded for delays and carve-outs including proposing a regulatory body to monitor and reduce abuses and, more recently, emphasising that the ban would create hardships for workers during the current economic crisis. The industry has also highlighted the fact that it contributes more than 1 billion USD in taxes each year.

It is unclear, however, what impact this would have on the online casino community but it is fairly safe to assume that many Russians will turn to this outlet following the ban. Online gambling will more than likely increase in popularity in Russia as a result of the ban now that players - particularly those in Moscow - will no longer have the option of playing in a nearby live casino.

The impact in Moscow is already visible - casinos on the main casino strip in Moscow have already turned off their lights. One of the oldest casinos in the country, Metelitsa, displays a sign which reads "Thanks for 16 years of trust" while also advertising the space as now for rent.

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30-Jun-2009, 11:37

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