Although some operators are attempting to find loopholes in the law banning gambling activity in Russia outside four remote designated zones, due to be enforced on 1 July, the government already has most things covered. There have been moves to turn slot machines into ‘lotteries’ by making certain adjustments to the equipment but the Ministry of Finance last year made it clear that this was illegal. Anyone found operating a slot machine as a lottery will be charged with tax evasion and the machines will be confiscated.

Actual lotteries at present account for just 1% of gambling revenue. With the closure of the casinos, the lottery business is expected to rise and it is considered that lottery regulation and controls will have to be revised and improved. Any equipment that is used for lottery games must receive certification from the authorities and conform to existing lottery laws. Some slots operations have been turned into poker halls but they will come under scrutiny to ensure they are not violating the gambling ban.

Already the ‘КАЗИНО’ signs are being taken down and those businesses still operating have begun the closure process. After two decades of a flourishing gaming industry in Russia, it is estimated that the gambling ban will leave as many as 400,000 people without jobs. Some operators have taken top management with them to set up new casinos in Latin America and Eastern Europe, but the vast majority of employees will be left behind to try to find work in a Russia hard hit by the economic crisis. (E-06.29.09)

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